Tire Tariff Creates Local Impact

By Gan Matthews, NEWS 9

EDMOND, Oklahoma -- This month President Obama imposed a stiff tariff against Chinese-made tires. While the act takes place on the global stage, the fallout promises to be local.

At Big O tires in Edmond, owner Ronnie Peacock says 60 percent of the tires he stocks were made in China. So the new tariff will impact him and everyone else in the tire business.

"On the retail side we're gonna see some supply interruption, back orders on tires, and we're gonna see some significant cost increases," Peacock said.

How much of an increase? Right now a set of four economy tires sell for about $300.

"The full effect of it, we could that $300 set of tires go to $400," Peacock said.

Higher prices will likely encourage customers to keep driving on their old tires. Or they may buy used tires. Both choices raise safety issues.

Beyond tires, larger issues loom. Some economists worry the Obama administration tariff will prompt China to retaliate--and eventually set off a global trade war. For now though, most Oklahomans will be focused on what their tires will cost them in the near future.

"It is a shock to everybody and the price of tires right now, I mean, we all go ahead and buy them with the economy and everything going up, I think we just have to strap on our pants and go ahead and pay for it cause we're gonna have to," tire customer Kaci England said.

The U.S. Commerce Department has also proposed increased duties on imports of Chinese steel pipe.