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Chinese tire tariff to drive up prices?

Updated: Thursday, September 4 2014, 05:44 PM EDT

WTOV9.com
WINTERSVILLE, Ohio -- After warnings about a new tax that could roll out and cost you more to put tires on your car, the owner of a local tire company says don't believe the hype.
Doug Snyder, of Snyder Tire, has been in the business a long time. And he's been hearing concerns from customers regarding a tariff increase on Chinese consumer tire imports the U.S. Department of Commerce is considering.
"And Number 1 Snyder wants to give you the story straight of exactly what's going to happen," he said.
Snyder said the prices on tires will remain stable for the rest of 2014. He adds that this has been reported wrongly and it has consumers in the valley who are looking to buy tires from now until the end of the year worried that the prices will be increasing.
"The Obama Administration tried to do this the last time he came into office because the demand of tires got so great that the American manufacturers also raised prices,” Snyder said. “But there is no chance now of the tariff passing from now until the end of the year."
That doesn't mean it won't come down the line. The U.S. Department of Commerce is supposed to make a decision in November whether or not to bring back the tax.
Between 2009 and 2012, Chinese tires were hit with nearly 30 percent tax hikes to stop an influx of cheap tires made with Chinese steel.
Snyder is planning ahead and already bought majority of his tires and made deals for the rest of the year.
"Our prices may vary a little here or there,” he said, “but there is no reason to be concerned or alarmed that there is a going to be a huge tariff in 2014 that your prices will go up."
The department of commerce still says the tax did what it was intended the last time around. It led the U.S. tire market to rebound in production and sales. The down side for consumers is the government acknowledges that it also drove up the price for consumers on American-made products by about 10-20 percent.
That was about an extra billion dollars paid by consumers.

Chinese tire tariff to drive up prices?


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