Obama's Tire Tariff Will Hurt the Poor the Most

[Toro]

Why? Because the tariff is on the cheapest tires, which aren't purchased by people who drive Lexus's or BMW's.

Consumers who buy low-price Chinese tires -- the bulk of the tires China exports to the U.S. -- will be hit hardest by the new tariff, as shortages in this market segment cause retailers to scramble to find alternative sources in other countries.

The tariffs, which apply to all Chinese tires, will cut off much of the flow of the more than 46 million Chinese tires that came to the U.S. last year, nearly 17% of all tires sold in the country.

The low end of the market will feel the impact of the tariff most, as U.S. manufacturers, who joined the Chinese in opposing the tariffs, have said it isn't profitable to produce inexpensive tires in domestic plants.

"I think within the next 60 days you'll see some pretty significant price increases," said Jim Mayfield, president of Del-Nat Tire Corp. of Memphis, Tenn., a large importer and distributor of Chinese tires. He estimates prices for "entry-level" tires could increase 20% to 30%.

Low-end tires cost roughly $50 to $60 apiece, while premium tires can sell for $200 to $250.

Tariff on Tires to Cost Consumers - WSJ.com

The tariff was opposed by tire retailers because it takes money away from them.

The tariffs were also strongly opposed by US tire distributors and retailers, who said the restrictions would raise prices, hurting cash-strapped consumers.

"Tariffs will not create manufacturing jobs in the United States," said Jim Mayfield, president of Del-Nat Tire Corp, which sells private-label tires, including Chinese-made imports.

He said that, for the past 15 years, major US producers had focused on higher profits and better performing tires instead of what industry insiders call "tier-three tires" that serve lower end and second-hand automobiles.

With tariffs imposed, the biggest hit would be felt by American consumers who buy US$50 Chinese-made tires and weren't able to afford US brands costing upward of US$150, several distributors warned.

Some low-income consumers are stretching their tires well beyond their useful life, Mayfield said.

China angered by US tariffs on tires -- Shanghai Daily | 上海日报 -- English Window to China New

Leftist economist Greg DeLong explains why the tariff is a bad idea.

Why oh why can't we have better Democratic presidents?

Barack Obama does something stupid. ...

Let's see... 250 million cars in America... need 4 tires per car... need new tires every 2.5 years. 400 million tires a year... $1.4 billion dollars a year... 10,000 worker jobs saved... $140,000 dollars per worker-job per year.

Looks like we could (a) let the Chinese sell us tires, (b) tax each tire by $2.50, (c) pay each tire worker who loses his or her job $100K a year, and we come out ahead: American households have more money to spend on other things, China has more jobs to help what is still a very poor country grow, and tire workers have higher incomes and more leisure as well.

But, you say, it would be stupid to impose a $2 a tire tax and use the money to pay each laid-off tire worker $100K a year.

That's the point: when the policy you are adopting is worse for everybody than a policy you agree is stupid, the policy you are adopting is best characterized as really stupid.

Barack Obama Does Something Really Stupid: Tire Tariffs

The tariff will benefit the few at the expense of the many. It is essentially a transfer from the poor and lower middle class to the middle class. It is bad policy.

 

[Modbert]

I'm honestly not surprised by this.

 

[Mr Natural]

Cheap shit tires from Communist China.

Exactly what America needs.

 

[Modbert]

Cheap shit tires from Communist China.

Exactly what America needs.

The low and middle class are fucked either way.

Support this, get fucked in prices in a bad economy where millions have lost their jobs.

Don't support this, continue to watch American jobs turn into dust in the wind.

Personally, I still don't think this tariff should continue.

 

[eagleseven]

It hurts the poor, and managed to piss off our second largest trading partner and creditor.

Obama is batting 1000!

 

[Supposn]

... With tariffs imposed, the biggest hit would be felt by American consumers who buy US$50 Chinese-made tires and weren't able to afford US brands costing upward of US$150, several distributors warned. ... The tariff will benefit the few at the expense of the many. It is essentially a transfer from the poor and lower middle class to the middle class. It is bad policy.

Toro, both the quality and price of products are affected by the time and quality of labor that was devoted to the products. (Note; differing quality of labor command differing wage rates).

The price advantages of imports from lower-wage nations exist even among their mass-produced products; labor’s required to create and maintain the mass production tools, assembly lines and infrastructures to support the production of goods].

Individual persons and enterprises derive direct financial benefits when they (correctly) choose to purchase imported goods.

Although individual purchasers benefit, a nation’s annual trade deficits AlWAYS “drag” upon their nation’s GDP and numbers of jobs; (i.e. annual trade deficits are always net detrimental to their economies).

All USA purchasers benefit due to any imports’ superior values per dollar, but those advantages do not compensate for our chronic annual trade deficits effects upon employees, their dependents, and all others to any extent they’re dependent upon enterprises that are themselves dependent upon the purchasing powers of USA employees and their families.

Respectfully, Supposn

 

[EdwardBaiamonte]

Cheap shit tires from Communist China.

Exactly what America needs.

Its what I needed!!! Sumotomo tires rated and 190 MPH at less than half price of Michlin and Perilli with better wear ratings!!