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U.S. imposes tire tariff on China
Sep 14, 2009 2:12 PM

TiresChina_v2The Obama administration on Friday imposed a new 35-percent tax on tires made in China. That includes many of the S- and T-rated tires in our recent upcoming tire test of all-season passenger car tires. More than half of the top 10-rated tires in the November issue are imported from China.

The tariff is likely to increase prices on tires for consumers at least in the short term, as China is by far the largest tire producer in the world. Also, some tire models could be harder to find temporarily if manufacturers decide to switch production to another low cost country.

The tariff takes effect Saturday, September 26th. It will remain in place for three years, but it will drop to 30 percent the second year and 25 percent the third year. The tariff was imposed in response to a complaint by the United Steel Workers union, according to the Washington Post.

Because the tire industry is very competitive, tiremakers may not be able to pass the price whole price increase along to consumers for long. But we at Consumer Reports are concerned that the higher tariff may indirectly compromise safety by giving consumers incentive to delay replacing worn tires. The move is likely to put some pressure on consumers, but more on tire manufacturers.

Would higher tire prices make you postpone a new tire purchase? Let us know in the comments below.

Eric Evarts

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