Tariffs on cycling goods

[sjbraun]

Another thread on this subject started and was shut down last August when tariffs were still just a threat. Now that they've been applied to many goods we import from China, does anyone have knowledge of which parts of the bicycle supply chain are impacted? Will the Ibis Hakka MX I'm looking at be priced 25% higher later this year?

I'm not trying to start a political discussion on the merits or disadvantages of tariffs; I'm just looking for real information on how the new tariffs will impact prices of bicycle frames and components manufactured in China.

Thanks

[oldpotatoe]

From White Industries

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.

[rnhood]

They may raise the prices a little eventually, but to date China has been absorbing the tariffs by lowering their yuan value. So no one should be charging you more, saying it's due to the tariffs. If they do, they are mostly likely ripping you off.

[54ny77]

That announcement from White is complete nonsense. Material cost up TWENTY EIGHT PERCENT and they decide to tack on a 4% "surcharge" due to tariffs?

Must be some potent pot smoke circulating in the HVAC these days.

[GregL]

Originally Posted by 54ny77

That announcement from White is complete nonsense. Material cost up TWENTY EIGHT PERCENT and they decide to tack on a 4% "surcharge" due to tariffs?

Must be some potent pot smoke circulating in the HVAC these days.

Makes sense to me. Raw material cost is only one part of the total cost of a finished good. A manufacturer will look at the total cost of their product before determining a price increase to cover higher material costs. Or at least that’s what my managers expect me to do😉.

Greg

[bcroslin]

Originally Posted by rnhood

They may raise the prices a little eventually, but to date China has been absorbing the tariffs by lowering their yuan value. So no one should be charging you more, saying it's due to the tariffs. If they do, they are mostly likely ripping you off.

Do you have a source for that? I’d like to know more.

[rnhood]

Sure. Here are links to 3 articles, and within these articles are comments and/or information pertaining to the yuan devaluation offsetting some of the tariffs. Given China's GDP is heavily based on exports, they will take a beating if the trade war continues, which I don't think it will. We represent about 20% of their economy and sooner or later, they will have to cry uncle and compromise on the negotiations.


https://www.wsj.com/articles/u-s-tar...article_inline

https://www.wsj.com/articles/china-i...s&page=1&pos=6

https://www.wsj.com/articles/chinas-...s&page=1&pos=1

[54ny77]

https://www.bloomberg.com/news/artic...r?srnd=premium

"Giant Manufacturing Co. saw the writing on the wall early on. The world’s biggest bicycle maker started moving production of U.S.-bound orders out of its China facilities to its home base in Taiwan as soon as it heard Donald Trump threaten tariff action in September.

“When Trump announced the plan of 25% tariffs, we took it seriously,” Chairwoman Bonnie Tu said in an interview at Giant’s Taichung City headquarters in Taiwan. “We started moving before he shut his mouth.”"

[sjbraun]

Who knows the country of manufacture of these frames?

Ibis Hakka MX- China

Salsa Warbird-_____

Niner RLT RDO-_____

Santa Cruz Stigmata-_____

Norco Search-_____

Specialized Diverge-_____

[JAGI410]

Salsa and Santa Cruz are China, but I haven't seen them adjust prices for the tariff yet.

Electra jacked up the retail/cost of their Townie (Chinese made, but best selling bike in the US) by $40 in response to the tariffs and we were told it might go up more.

[false_Aest]

You know, you could just call the MFG or a dealer.


Re: price increases. The cost of moving production from China to Taiwan added 6-10% to the cost of our goods last year.

For the first year my company and our assembly factory agreed to split the price increase and it would be negotiated from that point on. Other assembly factories are doing the same thing or simply moving their factories to Vietnam (that was already in the pipeline though).

XDS makes about 1.5million bikes a year for a lot of brands we know. They should have a Vietnam/Cambodia factory up and running by year's end.

The parts? Most of them will still come from China.

[CSTRider]

Originally Posted by sjbraun

Who knows the country of manufacture of these frames?

Ibis Hakka MX- China

Salsa Warbird-_____

Niner RLT RDO-_____

Santa Cruz Stigmata-_____

Norco Search-_____

Specialized Diverge-_____

My 2019 Diverge Comp (carbon) was made in Taiwan.

[rain dogs]

Niner RLT 9's / the aluminium ones / are made in Vietnam.... not sure where the carbon ones are made, but first guess would be the same place...

[Ozz]

Originally Posted by bcroslin

Do you have a source for that? I’d like to know more.

"When the United States levies a tariff on something, it is the US importer who pays the tariff, not the foreign exporter. A tariff is a border tax on the buyer, not the seller—tariffs make it more expensive for a buyer to import a good into the country."

https://www.ipi.org/ipi_issues/detail/who-pays-tariffs