Login required to started new threads

Login required to post replies

Prev Next
Chinese tariffs and bikes
Quote | Reply
On the local news (Los Angeles area) I saw an interview with Giant Bicycles based locally. The guy said if you are interested in buying, the prices are going up significantly due to the U.S./China tariffs. I don’t want to get political here, just giving a heads up (maybe, possibly)
The guy from Giant made it sound like many (most?) manufacturers are in the same dilemma.
Is this a topic at the Interbike show in Reno?

Team Zoot So Cal
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
Yes, on bikes whose country of origin is China there is a 10% tariff being imposed starting next week and then on Jan 1 the tariff jumps to 25%. Just be sure of what you are looking at though. Bikes are made in many different factories around the world. China represents only a percentage of the total bike production and generally speaking they produce the lower price point bikes. I sell Pinarello, Colnago, Bianchi, Felt, among other higher end brands/models and none of them (entire brands in some cases, the higher end models in other cases) are impacted by this tariff.
Last edited by: Chris B.O.B.: Sep 20, 18 19:46
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
Everyone knows the best carbon is from Taiwan anyway.
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
We picked my husband's new Checkpoint up from the Trek dealer today and they were saying that yes, it's a very real thing. They said (although I can't speak to the veracity) that Trek is choosing to not pass the whole cost of the tariffs onto their customers, but I haven't spoken to any other manufacturer dealers to know if that's an across-the-board type position.

I did notice online that the new versions of the same Trek bikes are running about $100 more expensive than when we first were making the decision and ordering back in April.
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
Giant bikes are made in Taiwan?
Quote Reply
Re: Chinese tariffs and bikes [Shambolic] [ In reply to ]
Quote | Reply
Shambolic wrote:
Giant bikes are made in Taiwan?


Yeah about that...
Quote Reply
Re: Chinese tariffs and bikes [UK2ME] [ In reply to ]
Quote | Reply
UK2ME wrote:
We picked my husband's new Checkpoint up from the Trek dealer today and they were saying that yes, it's a very real thing. They said (although I can't speak to the veracity) that Trek is choosing to not pass the whole cost of the tariffs onto their customers, but I haven't spoken to any other manufacturer dealers to know if that's an across-the-board type position.

I did notice online that the new versions of the same Trek bikes are running about $100 more expensive than when we first were making the decision and ordering back in April.
Been checking Treks website. As of today all the prices are several hundred more for the higher end bikes.
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
This is slowly happening for absolutely everything. You can expect inflationary pressure to trickle down the supply chain over the next 3-6 months. I have seen net increases in the 5-10% range so far in various industry segments. Manufacturers seem to try to spead these tariffs across their product lines to limit increases. Keep in mind that tariffs apply to imported cost of goods so these are diluted in the total price of the bike, sg&a being unaffected.

There are also translation and clawback mechanisms in place that allow manufacturers to offset tariffs on imported goods. Manufacturers can use these so that the net domestic impact of tariffs can be limited to chineese imports minus exports (including US production). If you don't export you're sol, but if you do you can put that export value to work offsetting the tariffs, whereas it didn't change anything before. Depending on what makes sense for them, US manufacturers might decide to spread the load to adjacent markets (Canada&Mexico) to subsidy domestic increases, but technically Canadians and Mexicans should be expempt of US inbound tariffs as exporters can claim the clawback on export.
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
So great being a Canadian!
Quote Reply
Re: Chinese tariffs and bikes [Chris B.O.B.] [ In reply to ]
Quote | Reply
Quote:
China represents only a percentage of the total bike production and generally speaking they produce the lower price point bikes.

This hasn't been true for quite some time. China has quietly been producing larger and larger percentages of the high(est) end product for a while now. The tariffs will likely change that as we all scramble to find production slots in other parts of Asia.

Not in America, though. That's the lunacy of these tariffs; they aren't driving anyone's production back into the US.

Consumers are either going to see BIG price increases or significant delays in availability this season. Be ready for it.

Tech writer/support on this here site. FIST school instructor and certified bike fitter. Formerly at Diamondback Bikes, LeMond Fitness, FSA, TiCycles, etc.
Coaching and bike fit - http://source-e.net/ Cyclocross blog - https://crosssports.net/ BJJ instruction - https://ballardbjj.com/
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
Almost all of the actual manufacturing in the US is high-end boutique bikes and components, generally at very high price points. This tariff will do nothing to bring back low- and mid-range manufacturing to the US, it will just raise prices for most consumers.
Quote Reply
Re: Chinese tariffs and bikes [tttiltheend] [ In reply to ]
Quote | Reply
tttiltheend wrote:
Almost all of the actual manufacturing in the US is high-end boutique bikes and components, generally at very high price points. This tariff will do nothing to bring back low- and mid-range manufacturing to the US, it will just raise prices for most consumers.


I agree though I would add that China isn’t the first place bikes get made when US mfg doesn’t make financial sense. There are places like Cambodia, Vietnam, and some Eastern European countries that are less affordable than China but more cost effective than the USA.
Quote Reply
Re: Chinese tariffs and bikes [Chris B.O.B.] [ In reply to ]
Quote | Reply
I personally think this may well be a scare tactic by the Giant guy seen on the interview. The two largest bike manufacturers Giant and Merida who make most of the leading other top name brands in their factories are based in Taiwan. They may have factories in China as well but this is generally for lower end bikes. Being a Taiwanese companies why would they be subject to the same tariffs? If it was a case them being shipped direct from China I am sure they could send them via Taiwan.
Quote Reply
Re: Chinese tariffs and bikes [UK2ME] [ In reply to ]
Quote | Reply
Take a look at the price list from a certain very large scale manufacturer - it’s color coded by prices that are new, higher or lower. A week ago it had a smattering of colors on certain models. The version that went to dealers a few days ago was ALL one color - prices were increase across the board.

Amateur recreational hobbyist cyclist
https://www.strava.com/athletes/337152
https://vimeo.com/user11846099
Last edited by: refthimos: Sep 22, 18 20:58
Quote Reply
Re: Chinese tariffs and bikes [refthimos] [ In reply to ]
Quote | Reply
Significantly or inflation as you would expect?
Quote Reply
Re: Chinese tariffs and bikes [Shambolic] [ In reply to ]
Quote | Reply
100% tariff-related increases. I didn't ask to scrutinize the list and quantify the increases .

Amateur recreational hobbyist cyclist
https://www.strava.com/athletes/337152
https://vimeo.com/user11846099
Quote Reply
Re: Chinese tariffs and bikes [Chris B.O.B.] [ In reply to ]
Quote | Reply
Aren’t most Cervelos made in China other than P5X and a very few models such as R5ca?
Quote Reply
Re: Chinese tariffs and bikes [Karl] [ In reply to ]
Quote | Reply
Key thing on this tariff is not just the complete bike, but so many tires,tubes, parts, accessories so much of these items come from China.

Robert Driskell
Certified Master Body Geometry fit Technician
Certified Master Retul Fit Technician
Zipp Service Course Specialist
Bikes Plus Pensacola Florida
Quote Reply
Re: Chinese tariffs and bikes [BMANX] [ In reply to ]
Quote | Reply
But now we'll find out which bikes in the Canadian market get here via the US and will be impacted....there will be a bunch.
Quote Reply
Re: Chinese tariffs and bikes [amos] [ In reply to ]
Quote | Reply
Will people in the USA start driving across the border to Canada to buy a bike and bring it back across ? Good business for a Canadian bike shop on the border
Quote Reply
Re: Chinese tariffs and bikes [Blacky] [ In reply to ]
Quote | Reply
It's gotta force more people to avoid their local bike shops and shop online in UK, order specific brands of bikes not impacted or order them abroad... I can't imagine the US bike industry sees something positive in these trade tariffs.
Quote Reply
Re: Chinese tariffs and bikes [Blacky] [ In reply to ]
Quote | Reply
Blacky wrote:
Will people in the USA start driving across the border to Canada to buy a bike and bring it back across ? Good business for a Canadian bike shop on the border

Canada has at least a 12% sales tax in most provinces, not to mention higher MSRP, when converted from USD. Maybe it'll make a difference once the 25% tax kicks in
Quote Reply
Re: Chinese tariffs and bikes [echappist] [ In reply to ]
Quote | Reply
Wanna bet against the Canadian distributors jacking up their MSRP to eliminate that gap?

***
Quote Reply
Re: Chinese tariffs and bikes [Blacky] [ In reply to ]
Quote | Reply
I'm less than 20 miles away from Windsor, ON but I'm not in the market for a bike for several more years.
Quote Reply
Re: Chinese tariffs and bikes [jaretj] [ In reply to ]
Quote | Reply
I have always thought that Canadian distributors just buy from the US. At least for the many products made in China and slapped with an American brand. Hasn't $CAD:$USD always played a role in pricing of bikes in Canada? CAD:Euro and CAD:Yuan has been fairly steady over the last 5 years, yet bike prices have increased dramatically with CAD:USD.
Quote Reply

Prev Next