Eric Elgert bought four new tires for his car for about $350 in mid-September.
If he had waited just a few weeks longer, his total tab most likely would have run higher – as much as $100 or more, reports the Sioux City Journal.
"I’m glad we got them when we did,” the Sioux Cityan said last week after learning about a 35 percent tariff on tires imported from China that went into effect on Sept. 26.
Local tire dealers say some manufacturers and suppliers have started charging more for their products because of the tariff, which applies to such popular brands as Cooper, Kumho and Runway.
"You’re facing 35% increases in some lines and 15% to 20% increases in others,” said Scott Eldridge, manager of the Square Tire store.
Many Chinese imports are entry-level brands that are most affordable to lower- to middle-income people, Eldridge said.
The retail price of one set of four 40,000-mile tires, for instance, has increased $150 in recent weeks, from $450 to $600, he said.
Eldridge fears that lessened competition from foreign imports will prompt U.S. manufacturers to raise the price of their higher-end brands.
Higher prices could force some such cash-strapped consumers to delay replacing worn-out tires, according to Jon Froehlich, manager of Fremont Tire in South Sioux City.
"Some people shop strictly by price,” he said.
With three locations in the metro area, Fremont Tire and T&W Tire bills itself as the region’s largest tire dealer. Froehlich said the dealership has not been forced to raise prices yet, but manufacturers have warned increases are on the way.
Tires Tires Tires, which has two locations in Sioux City, also is bracing to pay more for their next shipment.
"We stock 16,000 tires for our company. We go through those pretty fast in the fall,” Tires Tires Tires co-owner Dan Northdruft said. "Anything we purchase after now, we’re going to have to pass that increase in cost onto the customer.”
Some researchers expect the tariff to ultimately cut the U.S. input of Chinese tires by two thirds. That could force some manufacturing to other developing countries. In the meantime, that could leave some types of tires in short supply.
Some distributors and dealers are buying up excess tires in anticipation of such a shortage.
"We’ve never had a problem with the supply before,” Northdruft said. "The supply is going to start getting really tight. People may want a certain tire, and it might not be available.”
