JPMorgan: The Cost of Your Car Tires Is Going to Go Up Because of Tariffs

Tire prices are likely to increase as a result of the Trump administration’s steep tariffs on countries that export them to the U.S., analysts at JPMorgan said Monday.

A record 63.4% of tires sold in the U.S. last year were imported, with Thailand (subject to a 37% tariff), Indonesia (32%), Vietnam (46%), and South Korea (26%) making up four of the top five countries the U.S. imports from, the analysts wrote.

« We expect U.S. tire prices to rise, perhaps substantially, » JPMorgan said. Domestic tire producers should see a slight net benefit, but they face tariffs as well on the import of raw materials like rubber.

Source: Investopedia