rfitzpatrick
Well-known member
Will tires be subjected to a Tariff come 2025? Should I buy now?
TKS
TKS
Tire Tariffs
- Thread starter rfitzpatrick
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According to Coker Tire- "It's one of the few companies headquartered in Chattanooga, Tennessee, and the tires are manufactured in the United States. Coker Tire Company is unique because they have the manufacturing rights for classic tires made by BF Goodrich, Michelin, and even Firestone."
No tariffs on goods made in the USA. That was kindof the whole point.
No tariffs on goods made in the USA. That was kindof the whole point.
alexiskai
Well-known member
It's likely there will be some tariffs but very hard to say exactly when or how much or on what. It's also likely that many companies will use political connections to gain an exemption. I do think potential Burtz block buyers should be worried. Also tire tubes may be hit.
David in San Antonio
Well-known member
If there is a tariff on imports, Coker will pay it on top of the cost of any supplies from outside the US (rubber for example). The tariff money goes to Washington. Then Coker will either reduce its profits or pass the added cost to you, or a combination of the two.
Somehow I'm not seeing that happen. Not Coker in particular but any supplier selling imported products.
alexiskai
Well-known member
I think the whole point of tariffs is to incentivize companies to start manufacturing back to the good ole USA...
TOB
Prices go up either way.
mhsprecher
Well-known member
I think the whole point of tariffs is to incentivize companies to start manufacturing back to the good ole USA...
TOB
in real life, companies will just move manufacturing to another low cost/wage country (vs China). A 20% tariff on other countries' products probably won't do more than raise prices.
BRENT in 10-uh-C
Well-known member
Paul, the Model-A tires are likely made by Specialty in Indiana, PA, ...but what about John Kelsey's daughters who are producing the Goodyear Model-A tires? They are made in the Indiana, PA factory also.
Ronn, you watch, wait, & see what happens to the economy in this country over the next 24-36 months. FWIW, my phone has absolutely 'blown-up' over the past two weeks with people calling wanting to chat about having their Model-As repaired/restored.
BRENT in 10-uh-C
Well-known member
Milfred, how many of our Model-A parts are actually made in China? I thought most of the overseas manufacturing of parts in our hobby were made in Taiwan?
California Travieso
Well-known member
Exactly. Domestic manufacturers will charge the same prices as the imported prices that include the tariffs. There is no incentive for domestic manufacturers to charge less.
The only advantage of tariffs is that it could increase domestic employment but that is not guaranteed. Domestic manufacturers may decide not to invest in manufacturing the product, in this case Model A tires, so the tariff on tires would just mean higher prices.
Currently investors in the U.S. are more interested in investing in the new high tech industry not in the old technology.
Tariffs can be levied against a product or a country. If a tariff is levied against tires from China, manufacturers from other countries will probably increase their prices to the level of the tariff.
David Serrano
Jeff/Illinois
Well-known member
I worked at the JD Harvester Wks. in Zweibrucken , Germany for some time. Sitting in the cafeteria one day I was looking at the beautiful china ware with the leaping Deere logo they used to serve meals. On the back of each plate, and cup, and glass, were the words 'Macht en Deutschland... 'Made in Germany'.
I commented on that to one of my German co-workers and he said 'Of course they are. We take care of each other, not like you Americans that send your jobs overseas and to Mexico.'
Who can argue with THAT!
Thanks Corporate America you send our guys into combat to fight your wars but stick it to us all in the name of profit
I commented on that to one of my German co-workers and he said 'Of course they are. We take care of each other, not like you Americans that send your jobs overseas and to Mexico.'
Who can argue with THAT!
Thanks Corporate America you send our guys into combat to fight your wars but stick it to us all in the name of profit
TerryO
Well-known member
alexiskai
Well-known member
The main thing with tariffs, both overall and specific to the hobby, is that consumption falls due to demand elasticity. So for example, let's say there's a Model A part that costs $20 and is made in China. You could make this part in the US for, say, $25. The part manufacturer sells 1,000 of these parts a year.
Now let's say they put a 30% tariff on this part. Now the US-made part is cheaper. But the demand for that part was for 1,000 units a year at $20. If the price is now $25, demand falls – some people decide it's not worth it. Now you can only sell 800 units a year.
And remember that the higher price in the US reflects higher input costs, not higher profit margin. So the US manufacturer isn't making as much profit off this part as the Chinese manufacturer was. And there's a cutoff line for every part where it becomes unprofitable to manufacture the part because there's not enough demand.
So it's possible that some items, with a tariff applied to them, will go out of production, because the resulting higher price pushes demand below the amount that makes starting production profitable. No way to know which ones that'll be ahead of time, although, again, it seems like the Burtz engine would be vulnerable.
Ronn, you watch, wait, & see what happens to the economy in this country over the next 24-36 months. FWIW, my phone has absolutely 'blown-up' over the past two weeks with people calling wanting to chat about having their Model-As repaired/restored. __________________
thats great news for you Brent, but you dont have what I would call a typical business. You are quite a niche.
Fuel going down will help the economy, but dont think for a second wages are going to be cut in half. So prices will still stay somewhat elevated.
In the last 4 yrs, many things have doubled. housing and new cars. No longer are there going to be brand new cars for 20k. the avg new vehicle today is 49k and trucks much more............ smoke that in your pipe! LOL
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thats great news for you Brent, but you dont have what I would call a typical business. You are quite a niche.
Fuel going down will help the economy, but dont think for a second wages are going to be cut in half. So prices will still stay somewhat elevated.
In the last 4 yrs, many things have doubled. housing and new cars. No longer are there going to be brand new cars for 20k. the avg new vehicle today is 49k and trucks much more............ smoke that in your pipe! LOL
[SIZE=-2].[/SIZE]
Jeff/Illinois
Well-known member
You may be right that was almost 25 years ago, I swear it was 'macht' maybe what you are saying is Low German, they told me that was 'hillbilly German' spoken in the north and they couldn't understand them!
I was in the extreme south die Pfalz, Rhineland-Palatinate and the Saar, right next to Bavaria....They speak High German they told me that was the 'refined' German
the language of business and more intelligent people.... hey I'm just saying what I was told!You may be right that was almost 25 years ago, I swear it was 'macht' maybe what you are saying is Low German, they told me that was 'hillbilly German' spoken in the north and they couldn't understand them!
I was in the extreme south die Pfalz, Rhineland-Palatinate and the Saar, right next to Bavaria....They speak High German they told me that was the 'refined' German
Yeah, there are many dialects of German. My since departed older family members in Iowa spoke an Amish version that they were convinced was proper German because it's all they had ever heard.
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