The US governments decision to slap heavy duties on imported Chinese tyres is regarded as a stealth tax on motorists, according to lobby group.
Barack Obama is accused of breaking his central campaign promise not to raise “any form” of taxes on American’s making less than $250,000 a year by American’s for Tax Reform.
The controversial tyres tariff has sent shudders of nervous anticipation of a potential trade-war between the US and China.
But closer to home, Grover Norquist, president of the non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases, said: “Make no mistake; a tariff is nothing more than a tax on consumers.
“This decision will drive up the cost of tyres, increasing the economic burden on families already struggling with the high cost of transportation.”
He said the families hardest hit by the tax increase will be low-income families, since the tariffs will be applied to low-end tyres, costs $50 to $60 as opposed to the $200 to $250 paid for premium tyres.
“According to the Wall Street Journal, Americans can expect to see a 20 to 30 per cent increase in the cost of tyres.”
Obama has been accused of bowing to pressure from the United Steelworkers – a powerful union – to imposed the 35 per cent tariff on tyre imports from China.
Mr Norquist added: “With this decision, Obama has put the interests of his union supporters, too fearful to compete in the marketplace, above the interests of taxpayers.”
Oliver Hall, Operations Team