Lufkin, TX (KTRE) - It’s called a tariff. It’s basically a tax on an imported good.
Trade wars continue with the latest round of tariffs imposed on Monday by President Trump.
The US has moved forward with tariffs on more than 5,700 products imported from China.
The estimated value is sitting at nearly $200 billion.
“Anything that is ordered currently carries the new 10 percent price increase,” said Mark Cook, owner of Cook Tire and Services.
He has at least 4 decades worth of experience under his belt and said he’s seen this before.
“We’ve seen the threats of tariffs, we’ve seen tariff and the ripple effect that we all feel from a dealership perspective, a consumer perspective, not a fun time for any of us,” Cook said.
With the current hike, the prices for tires will ultimately impact a customer’s wallet and not necessarily the business, at least not immediately Cook said.
“Most consumers don’t realize the impact. You know,” Cook said. “We’re informing all of our customers especially our commercial customers that this exists and that inventory pricing will be adjusted and again this tariff is only affecting tires that we purchase that are imported from China through various distribution stream.”
While the tariffs affect various industries individually, General Manager of Lufkin Coca-Cola said the main impact of their products is due to tariffs on aluminum. He said its too early to pinpoint the price of goods going up because they just increased in July.
“There was a lot of correlation between our costs of goods going up and the tariffs being imposed,” said Jim Watkins, general manager. “But really I think at best that was an indirect effect to us. We were experiencing an overall cost of goods increase in spite of the tariffs.”
Cook said while this increase is at 10 percent now, it’s expected to rise to 25 percent by January 1.
Major retailers across the U.S. are warning of price hikes expected for certain Chinese-made goods.