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Trade Tariffs On Chinese Tires Ineffective

In 2009, the United States decided to enact trade tariffs on tires coming from China with the hopes of encouraging manufacturers and creating jobs in the United States. While the tariffs did reduce the amount of tires coming from China, it has done little to help US manufacturers or create jobs. Instead, the supply source has shifted to other markets like Taiwan, South Korea, Japan, and Indonesia. During this time, the price of tires has jumped over ten percent in the United States.

Now, in 2012, the tariff is up for review, and in the midst of an election year, the promise of American jobs is once again on the table. If the tariff is extended, not much will change. Manufacturers in the U.S. just don't see any profit in manufacturing inexpensive unbranded tires, and have instead invested billions into tire manufacturers overseas. Because of the failure of the tariff, it is expected that the U.S. will look for other ways to manage their trade relationship with China.