Will the United States International Trade Commission (ITC) once again recommend tariffs be increased on Chinese consumer tire imports? We won’t know for sure until July 18.
If the answer is yes, then the final decision on the implementation of that recommendation likely will be made before the November elections. One of the key elements to be considered in the decision-making process is the effect the tariffs will have on domestic tire pricing. Here’s what happened the first time around.
In 2008, the average cost of a passenger tire in the U.S. was $99.48. The average light truck tire cost $143.33. At the time, there was a 4% duty on all consumer tires coming out of China. Then the real tariffs began.
From Sept. 26, 2009, to Sept. 25, 2010, the tariff was raised to 39%. The next year, it was reduced to 34%. In the third year, it was 29%.
When the additional tariffs ended on Sept. 26, 2012, the duty returned to 4%. At the end of 2012, the average costs of a replacement passenger and light truck tire were as follows:
Tire type 2012 Change from 2008
Passenger $128.64 + 29.3%
Light truck $180.21 + 25.7%
Since most of the tires coming to the U.S. from China were low-cost radials, the average cost of a “good” tire in the “good, better, best” pricing strategy increased. That, in turn, led to an increase in the “better” and “best” tires. Its predicted that tire prices will increase again if more tire tariffs are implemented. And because they haven’t returned to pre-2009 levels, tire prices are going to reach record levels.
Your Next Tire has all your tire needs weather you need tires for your minivan, backhoe, dump truck, lawn mower, atv, semi truck or Lincoln Navigator.
We have several warehouses full of tires and ship all over the USA daily. Give us a call at 1-888-513-8473 and check out our website http://www.yournexttire.com