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Tariff on Chinese tires begins to drive up prices
posted by: Dan Boniface , Web Producer  
written by: Kevin Torres , Reporter  
created: 11/2/2009 4:18:52 PM
Last updated: 11/2/2009 9:00:13 PM
DENVER - If you're in the market for some new tires, you should probably buy them now. That's because a tariff placed against cheaper, Chinese brands of tires is jacking up the prices of other brands by as much as $60 per tire.

John Perschbacher, the general manager of Premier Tire Terminal in Denver, can't seem to find enough tires with which to stock his store. Perschbacher usually orders a mix of American and Chinese manufactured brands, but he's having a tough time getting a hold of the Chinese ones, because of a 35 percent tariff placed against foreign manufacturers by the Obama administration.


"It's created a shortage in supply and is increasing the prices of entry level tires," Perschbacher said.


Most Chinese tires normally sell for around $30 to $40. But the increase is jacking up the price by quite a bit.


"Eighteen to $20 per tire...$100 on a set," Perschbacher added.


In some instances, Perschbacher says an additional $60 is being tacked on.


It's good news for stores like Discount Tire Co., which sells foreign made tires, but not those manufactured in China.


"It's going to secure more jobs for Americans and keep those tires going out the door, rather than the Chinese door," Brian Meredith, a manager at Discount Tire Co. in Denver, said.


Even though the prices at Discount Tire Co. are stable right now, the folks at Premier believe the American manufacturers will take advantage of the situation and pump up their prices too.


"I suspect by the first of January you're going to see prices increase," Perschbacher said, referring to American brand tires.


Despite their differences on the matter, both tire companies say if you're looking to purchase tires - you should do it now...before they cost even more.


"It's probably going to save you money in the long run," Meredith said.


Some of the Chinese brands affected by the tariff include:


Hangzhou Zhongce Rubber Company Ltd.. It sells brand names such as Compass, Westlake and YKS. Wellbridge Enterprises Co., Ltd., Sinorient Tyre Co., Ltd., Homeway Corp.


For more Chinese Manufactured Tire Brands, follow this link.




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