Tariffs on imports, lower supplies and higher demand from drivers buying winter tires are combining to jack up costs.
Goodyear, the biggest U.S. tiremaker, just raised prices. Other manufacturers probably will follow to offset U.S. tariffs on Chinese-made tires and the rising cost of raw materials such as rubber and oil. KeyBanc analyst Saul Ludwig sees prices up 5 percent to 10 percent by January, the start of a year when Americans are expected to buy about 210 million replacement tires, according to the Rubber Manufacturers Association.
President Barack Obama recently slapped a 35 percent tariff on tires after a U.S. union claimed an influx of Chinese imports has cost more than 5,000 U.S. tire workers their jobs since 2004. Those replacement tires account for about 17 percent of the U.S. market, up from 5 percent five years ago.
Lumped together under the tariff are tires made in China by major producers — including Michelin and Pirelli — and tires made by Chinese manufacturers and sold in the U.S. under brand names such as Ling Long and Wanli.
But Chinese-made tires aren't the only ones getting more expensive.
Goodyear Tire & Rubber Co. will raise the price on all consumer replacement tires sold in North America by 6 percent starting Tuesday. The Akron, Ohio-based manufacturer cited raw material costs. Goodyear imports about 2 percent of its tires from China, so the increase also could offset tariffs.
A 6 percent increase would bring the cost of a set of 16-inch Goodyear Ultra Grip snow tires to $432.48, according to online retailer Tire Rack.
Cooper Tire and Rubber Co., based in Findlay, Ohio, has hiked prices across its lineup to recoup the cost of Chinese tariffs. Ludwig expects Cooper to raise prices 5 percent to 10 percent in the first quarter because of raw material costs. A set of Cooper's 16-inch Lifeliner GLS tires, the company's moderately priced line, is about $350.
While all tires meet U.S. safety standards, there can be quality differences.
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