By Denna Bowman
Tariffs on imports, rising costs of materials and high demand for winter tyres are combining to jack up tyre prices in the US, according to analysts.
Goodyear has already announced price increases of 6 percent, while other companies are set to follow in order to offset the steep tariffs imposed on Chinese-made tyres and the increasing costs of raw materials, including rubber and oil.
A shortage of supplies will also affect the market, as some manufacturers delay releasing stock while they move production out of China to avoid the steep duties.
Analyst Saul Ludwig predicts prices will be up 5 to 10 percent by January, which coincides with the start of the year when Americans are expected to buy about 210 million replacement tyres, according to the Rubber Manufacturers Association.
It will also hit recession-hit vehicle owners who have put off buying new tyres this year to save money, but will be forced into a purchase in the coming months in order to keep the cars safe and legal on the roads and to weather the harsh winter conditions.