What are you thinking, CYCLING RELATED, on tariff subject - Page 2

CAAD · #16 Today, 02:11 PM

How do these tariffs work with Chinese direct to consumer? Btlos wheels comes to mind. Will we get hit with a tax bill at time of delivery? Even worse some 3rd party company will pay the tax on our behalf and turn around a add a ridiculous processing fee before they release the product.

72gmc · #17 Today, 02:18 PM

Quote:

Originally Posted by fignon's barber

I don't really understand the concern. People have gotten used to paying double for everything over the last few years, so what's the difference.

I just hope whatever policy comes to life, it doesn't have severe impacts on small businesses such as SimWorks.

GonaSovereign · #18 Today, 02:27 PM

Quote:

Originally Posted by 72gmc

I just hope whatever policy comes to life, it doesn't have severe impacts on small businesses such as SimWorks.

Where is their stuff made? If it's anywhere other than the US, their costs (and yours, if you buy) will go up. Many will buy less and the business will be hurt.

BTW, don't forget the indirect costs. If you like timber for new houses or oil, remember that a lot of that comes from Canada. It's also one of the few non-Chinese options for a lot of critical minerals. All of those go in your bike computers and/or power the vehicles that get stuff from the border to your home.

Hopefully (for CA and the US) economists will have a say on any new tariffs.

benb · #19 Today, 02:31 PM

Quote:

Originally Posted by CAAD

How do these tariffs work with Chinese direct to consumer? Btlos wheels comes to mind. Will we get hit with a tax bill at time of delivery? Even worse some 3rd party company will pay the tax on our behalf and turn around a add a ridiculous processing fee before they release the product.

There are two methods of business IIRC, I think I read this with respect to businesses like Temu. This is all in place right now today. I am not sure which model any of the bike companies are using.

There are two models a business in China can take:

1) Set up a US distributor. Ship big shipments to the US distributor/subsidiary. This saves on logistics costs but all the shipments are big and they go through US customs and they would be subject to any relevant tariffs, fees, taxes. Returns, etc.. can go back to the US subsidiary.

2) Ship individual orders direct from China to the customer. You can sneak past US customs, fees, tariffs, etc.. this way but it increases your logistics & shipping costs. Temu, etc.. I thought I read were trying to do this. There is also the issue here that the PRC apparently makes it really cheap for them to ship goods out, but it is expensive for a consumer to ship anything back for return and that can hurt your reputation.

#2 might stay possible under whatever might happen next year but it sounds like a balancing act, and it's possible there's a way to crack down on #2.

bigbill · #20 Today, 04:02 PM

I'm not too wound up yet. Tariffs are a bargaining tool, what is said in public likely changes in private negotiations. PRC has a bad economy and will likely make some concessions. For the PRC/ROC issue, it will wreck China's economy if they do anything other than execute a peaceful takeover. The Chinese are building new coal plants to lessen their dependence on oil, which could be cut off by shutting down the Strait of Malacca.

AngryScientist · #21 Today, 04:11 PM

If we could find a way to shut down the creation of fake goods that live on aliexpress like fake Paul brakes, EE brakes, those fancy cranksets and even counterfeit chains, pedals and other stuff that would be good. Even making the profit on them less attractive to the counterfeiters, that would be a net benefit.

Counterfeits aside, there is so much absolutely disposable garbage that can be bought ridiculously cheap on Amazon it's crazy.

It's possible the US market does need a reset and reminder that buying a quality product once beats buying crap and disposing of it over and over.