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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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Kahlua
To: ajtj99 who wrote (94602)8/28/2025 4:53:49 PM
From: ajtj991 Recommendation   of 97583
 
Here is something I did today in response to tariffs.

TJ needs some new tires by Thanksgiving. However, 15-30% of a tire is imported, natural rubber. Rubber from Indonesia now has 19% tariffs on it.

Radial tires also have steel belts in them. The steel has bumped up 50% in price since the tariffs started.

Tire companies likely update their pricing quarterly. Steel supply pricing updates quarterly, so it makes sense they would lock pricing in this way.

I told TJ that even though he could drive another 5,000 miles on the tires he has, he would be better paying for them now and getting them installed in the end of September.

The reason for this is that while he has 10% tread life left on the tires, the added cost of tariffs could bump up the price for them by nearly 20% by Thanksgiving. By paying now and getting them installed in the end of September, he splits the difference in time and still gets the lower, summer pricing.

This is the stuff that is going to be smacking consumers upside the head in the coming months. Few understand the minutia of tariffs and their applications in the supply chain like me. However, people do understand tires that used to cost $150/ea now running $180/ea.

Just wait until canned goods start to incorporate the 50% higher steel tariffs. You could see canned goods in grocery stores move up 15% in price just due to this.

All that steel used in canned foods may give suppliers more incentive to use plastics instead, which involves a higher environmental cost, but a lower overall cost due to these ridic tariffs.
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