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