Tire Prices To Jump in January
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Updated: 7:21 AM Dec 29, 2009
Tire Prices To Jump in January
Thanks to higher tariffs on imports and higher prices for materials, prices for tires are increasing.
Posted: 10:56 PM Dec 28, 2009
Reporter: Jamie Edmonds
Email Address: jamie.edmonds@wilx.com
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At Brogan's tire center in Lansing, recently business has been booming.

"We're finding that because people aren't buying new cars like they used to, they're buying more tires," Owner Jim Brogan said. "A lot of people have been holding on to their cars, so they need tires."

But whether you need just one -- or a whole new set -- prices are about to inflate, and it's not because of Brogan or any other retailer.

"Most of the tires that go out of here are in the $300-$400 dollar range," Brogan said. "It might jack up the price another $30."

Why? Because back in September, President Obama increased tariff's on Chinese-made tires by 35 percent -- and that hike should hit consumers early next year.

"The President OKed a tariff on Chinese tires to level the playing field to give the American manufacturers a chance to keep business here," he said.

The Chinese-made tires dominant the lower-end market, so obviously those tire prices will go up, but one local dealer said other major brands are increasing their prices too.

Brogan said he's gotten notices from the manufacturers to prove it, most saying they plan to raise their prices beginning January 1st.

"Goodyear is going up 5 percent, Bridgestone-Firestone is going up 5 percent, even Cooper, which is strictly American, will be up 5 percent," Brogan said.

Other major tire retailers in the area confirmed the price increases, but wouldn't go on camera for the story. Brogan wouldn't speculate why the American companies are raising prices too, but said if you're in the market for new tires, now would be a good time to buy.

"I mean it's not a lot of savings, but every little bit helps," Brogan said.

The tariff not only affects Chinese tire companies, it also affects tires made in China by other producers like Michelin and Perelli.

Goodyear imports about 2 percent of its tires from China, but has come out and said it raised its wholesale prices due to increased prices for materials.