Your next bike just got a lot more expensive

Delish

Well-Known Member
Team MTBNJ Halter's
I've been following the China trade war pretty closely. With yesterday's announcement, things just got real, real fast. Previously most of the items were industrial inputs but now there are a ton of consumer products on the list.

Effective Monday, Sept 24th there will be an additional 10% import duty on a metric $h!t of items including the bike stuff below. And, unless something changes, the rate goes up to 25% starting Jan 1, 2019. Mind you, there are on top of the duties already in place.
  • basically all complete bicycles...
  • basially all bike parts (frames, forks, parts of frames, tires, rims, wheels, spokes, hubs, brakes, saddles, pedals, cranks)
  • bike lights
  • speedometers (GPS units were already included in the 25% tariff that went into effect on August 23)
It doesn't include stuff made in Taiwan or elsewhere but Giant and other factories have moved quite a bit of their production from Taiwan to mainland China.
 

Santapez

Well-Known Member
Team MTBNJ Halter's
I don't even know which bike mfg's get their completes from China. All of them?
Not even sure if it matters.

A majority of major parts probably can only be sourced in China. I'm assuming most derailleurs/shifters/cranks/cables/housing/pedals/cockpit items etc, made in China. So even if you buy a boutique bike made from a frame in the US, a lot of those components will need to come from China.

I'm wondering how this affects those of us who buy components from the EU as their pricing has been very good. Their pricing may be even more competitive, hurting US retailers even more.
 

The Kalmyk

Well-Known Member
Wonder how bike shops and manufacturers will handle what they have in the country already? I’m sure there is product here that will delay when this actually hits end users.


I’d be skeptical if I was told on Monday I was paying for the extra duty tax
 

Bike N Gear

Shop: Bike N Gear
Shop Keep
Wonder how bike shops and manufacturers will handle what they have in the country already? I’m sure there is product here that will quell when this actually hits end users.


I’d be skeptical if I was told on Monday I was paying for the extra duty tax

Manufacturers tend to be recommending that we buy inventory now to save on the inevitable price increase later. So, business as usual in that respect.
 

Pearl

THIS CHANGES EVERYTHING
next bike cant get more expensive if you cant afford a new bike anyway
09-roll-safe.w700.h700.jpg
 

stb222

Love Drunk
Jerk Squad
Being US made materials doesn't isolate it from these tariffs. White Industries already has a surcharge from the first round of tariffs:

http://www.whiteind.com/teriff
TARIFF surcharge

In your recent orders you may have noticed there is a now a line item that says "TARIFF SURCHARGE: USA COMMODITY INCREASE DUE TO RECENTLY IMPOSED TARIFFS."

The surcharge is due to severe increases in material and bearing cost. Despite using US made aluminum, steel, and titanium, we have still seen an increase of well over 28% in raw material cost alone. For this reason we have had to start attaching a 4% surcharge on all orders. Rather than increasing our prices, the tariff surcharge is listed making it easy for us to adjust or hopefully eliminate this surcharge when/if the tariff situation stabilizes. Thank you for understanding.

-White Industries
 

Chris(NJ)

Well-Known Member
Being US made materials doesn't isolate it from these tariffs. White Industries already has a surcharge from the first round of tariffs:

http://www.whiteind.com/teriff
TARIFF surcharge

In your recent orders you may have noticed there is a now a line item that says "TARIFF SURCHARGE: USA COMMODITY INCREASE DUE TO RECENTLY IMPOSED TARIFFS."

The surcharge is due to severe increases in material and bearing cost. Despite using US made aluminum, steel, and titanium, we have still seen an increase of well over 28% in raw material cost alone. For this reason we have had to start attaching a 4% surcharge on all orders. Rather than increasing our prices, the tariff surcharge is listed making it easy for us to adjust or hopefully eliminate this surcharge when/if the tariff situation stabilizes. Thank you for understanding.

-White Industries

I'm not buying that statement one bit. Seems politically motivated and not at all related to being honest or forthcoming w/ pricing.

Someone should also screen shot all of bike manufacturers msrp's on their websites. I'd guarantee there won't be a 10% increase this time next month compared to what it is today.
 

The Kalmyk

Well-Known Member
What if White industry just increased their prices 4%? Would that leave them in a position of less scrutiny than making a public statement on their website? Increases happen all the time in business without explanation.

When and if the tariff is lifted they would be at a higher price point.
 

rick81721

Lothar
I'm not buying that statement one bit. Seems politically motivated and not at all related to being honest or forthcoming w/ pricing.

Someone should also screen shot all of bike manufacturers msrp's on their websites. I'd guarantee there won't be a 10% increase this time next month compared to what it is today.

Agree. Sounds like opportunistic 4% price gouging.
 
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