New Tariffs 2025 !

[Ebiker33]

So I want to keep the politics out of this, I know really hard to do, but please resist the urge on how you feel, and just discuss the end result.

It looks like the USA will put 25% Tariffs on Canada & Mexico Feb. 1/25, China will get hit with another 10%, they will most certainly respond in kind opening up an unwanted trade war for consumers.
I am in Canada, and I can tell you the Canadian leadership will match every tariff exactly, so if Ebikes get hit they get hit for everybody.

My question to everybody is does that mean Ebikes crossing the borders either way will go up 25% ??
Should people be buying now to avoid these prices increases?
How much will it effect sales for distribution going both ways?

Please discuss, dealers input is even more valuable as you have a better sense of where this is all going.

 

[Mr. Breeze]

I understand your concern and appreciate the request to keep the politics out of the discussion. While I don't doubt some tariffs may be put in place, I am hopeful that this is simply saber rattling threats done in an negotiation ploy, as one of the results of such tariffs are higher prices for goods. From speaking with my LBD, much of the orders which are placed and in queue at a set price, so they aren't at this time worried, but they also said that until the specifics are disclosed and implemented, they have the same questions you pose. I'm sure others will have more to add.

 

[Roamers]

My question to everybody is does that mean Ebikes crossing the borders either way will go up 25% ??

Tarrifs are on import price, not selling price. So unlikely.

 

[DaveMatthews]

Tarrifs are on import price, not selling price. So unlikely.

Those who pay the tariffs will pass the added cost to the end user, so yes the seller pays more from the distributor that paid the tariff.

 

[teskow]

My first ebike was a Juiced RCS to which Juiced aded $300.00 tariff fee to the price They said they also contributed but could not absorb the entire tariff fee. I was not a happy camper.

 

[Ebiker33]

Some Ebikes have partial from China and then finished in North America, but most video's I have seen are 100% from China, so it seems likely at the very least we get hit with 10%

 

[JRA]

Better get you Grin order in now US citizens!

 

[keithj69]

Someone has to pay for a tariff. I just wonder who that individual will be when the final price is set.

 

[DaveMatthews]

Someone has to pay for a tariff. I just wonder who that individual will be when the final price is set.

You and me and everyone else as a consumer.

 

[Roamers]

Those who pay the tariffs will pass the added cost to the end user, so yes the seller pays more from the distributor that paid the tariff.

Correct, but final buyer will not pay 25% more as OP asked.

 

[Chargeride]

How far are they going to dig, China will just sell their stuff via some proxy country.
Made in new republic of bafangistan.

 

[DaveMatthews]

Correct, but final buyer will not pay 25% more as OP asked.

How do you know what any individual importer/distribution chain will do to a particular consumer?

 

[Mr. Coffee]

Given all that is happening I can't put paying more for a new e-bike even in the top 100 list of things to be concerned about.

And how can this discussion not be "political"?

 

[6zfshdb]

Correct, but final buyer will not pay 25% more as OP asked.

I think this will depend on how the tariffs are levied.

I'm in the US and last year, I bought two batteries from Grin Tech in Canada. Grin charged me the Canadian price, adjusted for the US exchange rate, and no tariff was included. Prior to delivery, I got a call from FedEx saying the batteries would not be delivered until I paid the tariff directly to them.

It's true, there was no price increase on the part of the seller. The tariff was levied by the shipper. The end price to me was 10% higher due to the tariff in effect at the time.

It remains to be seen just if and how these tariffs will affect overall prices.

 

[Roamers]

How do you know what any individual importer/distribution chain will do to a particular consumer?

I'm using the assumption that all in the chain wants to remain in business; if a link in the chain no longer wants to be in business, I will agree I was incorrect. But they can do a price increase without the tarrifs and accomplish the same result.

 

[Roamers]

It remains to be seen just if and how these tariffs will affect overall prprices.

I stand corrected. I did not consider direct to consumer sales (which I've never done) only supplier -> distributor -> retailer-> consumer relationships.

I can see how a direct to consumer sale could suck; I'll never know.

 

[Chargeride]

Lets be honest quality electrically powered bicycles are a luxury item and the vast majority of owners buy them with relative ease, often owning multiple versions and still have a full fridge.

 

[Roamers]

 

[BlackHand]

I think this will depend on how the tariffs are levied.

I'm in the US and last year, I bought two batteries from Grin Tech in Canada. Grin charged me the Canadian price, adjusted for the US exchange rate, and no tariff was included. Prior to delivery, I got a call from FedEx saying the batteries would not be delivered until I paid the tariff directly to them.

It's true, there was no price increase on the part of the seller. The tariff was levied by the shipper. The end price to me was 10% higher due to the tariff in effect at the time.

It remains to be seen just if and how these tariffs will affect overall prices.

At the risk of being pedantic, FedEx doesn't levy tariffs. The situation is a little more nuanced than your description (the end result to you is the same, hence why this might seem pedantic).

Grin=seller=shipper
FedEx is the carrier, not the shipper. In this case they are also acting as the broker to get the items through Customs.
Customs decides what duties to access.

Grin chose not to cover the cost of duties+taxes (on the custom paperwork they can authorize FedEx to pay US customs and then FedEx would in turn bill back to Grin's shipping account). This means you as the recipient/consignee of record are legally responsible for those duties if you want the package cleared by Customs.

Often, the broker/carrier will pay for the clearance if the duties are low value and then hold delivery until the recipient pays them(along with a brokerage fee for doing this). Larger value shipments might require you to fill out a POA form to authorize them to complete customs paperwork and pay duties on your behalf.

It's a PITA for everyone involved, and can feel arbitrary based on how the customs agent interprets the classification and value of the shipment.

 

[Ebiker33]

I was talking to a corporate buyer today and he had a novel solution for hard goods, companies create two separate entitles one American and one Canadian and have one Canadian warehouse and one American one for shipping.
This could solve some problems, but not all.

Companies that already have split distribution warehouses in North America are ahead of the curve, one distribution hub for all of North American in either country will be bad under tariffs regardless of where it is made.
A side effect of tariffs could be more jobs and warehouses in each country.
One thing to remember, Canada is a unique market very different than America, both Target and Lowe's came up here and failed, and they are both pretty successful in America.