NEW YORK ( TheStreet) -- Shares of U.S. tire manufacturers moved sharply higher Monday after the Obama administration said it would impose tariffs of as much as 35% on tires imported from China, the first salvo in what many fear could develop into a full-blown trade war.
Even while the broader equities markets fell on those worries, Goodyear Tire (GT - Get Report) shot higher by 93 cents, or 5.4%, to $17.99 in morning trading, while Cooper Tire & Rubber (symbol) (CTB) advanced $1.47, or more than 10%, to $16.04. Trading was heavy in both names.
On the surface, it would seem that domestic tire companies would benefit from tariff protection against lower-priced Chinese imports, which make up the bulk of the tires that come into the U.S. from abroad, especially on the low end.
But U.S. manufacturers actually opposed the tariffs along with China itself, since a large portion of their manufacturing capacity is in (you guessed it) China. For Cooper, the number was 2.5 million tires last year.-- Written by Scott Eden in New York Follow TheStreet.com on Twitter and become a fan on Facebook.