Price increases coming - tariff on ebikes, kits, motors, is now 'official'

  • Thread starter Deleted member 4210
  • Start date
D

Deleted member 4210

Guest
PeopleForBikes and the Bicycle Product Suppliers Association have been actively fighting higher tariffs on our industry. In June, the federal government, through the United States Trade Representative (USTR), proposed a 25 percent tariff increase on electric bicycles and motors imported from China.



Unfortunately, the e-bike tariff is now final.



Yesterday evening, the USTR announced that nearly every product that was proposed for a tariff increase in June will be subject to the 25 percent levy. This means that tariffs on electric bicycles imported under Harmonized Tariff Schedule (HTS) heading 8711.60.00 and 8711.90.01 will increase from zero to 25 percent. The tariff on e-bike motors imported under HTS heading 8501.31.40 will increase from 4 percent to 29 percent. These tariffs will go into effect August 23.
 
These bicycle and ebike-related tariffs make me so angry (yes I signed the People for Bikes petition several weeks ago).

Not to get political, but this is yet another reason, of many, I will do my part to vote to get anyone out of office at my first opportunity who supports this and other idiotic initiatives that in the end hurt consumers and smaller businesses.
 
Having observed the trade give-away to other countries since the 50’s, it appears that the reason for the tariffs is to make imports more expensive so US companies can compete. Many thousands of businesses [worldwide] have folded over the years because of China’s devalued Yuan. I doubt the administration’s plan is going to work because it is too much too soon.
 
Collateral damage, and there is going to be a LOT of it.


The bike industry isn't mute:

https://tinyurl.com/ybe584je

https://tinyurl.com/y8wlnagt

I was wondering what became of the bicycle tariff. That first article said 10% later. Total joke. Good thing I have 13 bikes already lol. I'll wait it out until all this blows over someday. Not paying 10% ~ 25% to economic saber rattlers. The e-bike industry will suffer. Not sure about bikes, but 10% is significant too.
 
Some ebike OEM's will raise prices, some won't. Some may try to absorb any increase for a short while to 'weather the storm' so to speak (perhaps grab some market share ?), and see if the tariff's are re-negotiated by spring. Creates a LOT of uncertainty though for IBD's or LBD's that carry both ebikes and/or regular bikes. Might see a near term spike in purchases though for maybe 30 to 60 days, pulling decisions forward. Hard to say how the consumer will react.

Here is one regular bike company that might be helped, who claims "Made in America".

https://detroitbikes.com/collection...198110477&mc_cid=a3cae6dc76&mc_eid=fbaa9eec94
 
Mike, I looked carefully over Detroitbikes' site and they may produce the frame there but no other components, not the wheels, spokes, brakes/levers, etc. So they are on the right track; however, it's still somewhat deceptive advertising. They do what several US based ebike manufacturers do, bring parts in from other countries and assemble in the US. We had a growing bike component manufacturing industry in the US during the late 60's + until Shimano stepped in and forced bike manufacturers to buy whole component sets for their bikes rather than 'a la carte' for specific components. This forced out a number of smaller US manufacturers (Avocet, King, etc.). It took more than 2 decades and several lawsuits to break that deathgrip on the manufacturers. However, by that time it was too late for most who didn't have the benefit of big investor bankrolls like new startups look for today.
 
I think many people would be shocked at how much manufacturing still exists here in the US. All sorts of items on the bikes can still be made here including handlebars, cranks, tires, rims, chain, front sprockets, nuts, bolts,grips, seat posts, leather goods, synthetics for things like seats, and much more. How do I know this ? Because I've only been calling on industrial firms and manufacturers for the past 35 years, providing them with energy technology and efficiency improvements to help them stay competitive. Entrepreneurs of all kinds are starting new businesses, and building here. Sure you are familiar with the 'big guys' but everyone overlooks the small guys. Most businesses can get awesome automated machining, robotics, and high tech computer operated assembly and conveyor equipment, that makes the environment far less labor intensive. Thats China's only advantage, and they have been losing that advantage for years. Wages are 5 times higher now than in 2000 in China. Nothing happens overnight, but most people miss the forest for the trees. Tariffs are not a long term solution by any means, but when massive numbers of Chinese firms are government subsidized, and selling products below market prices, something has to be done to reduce the imbalance. I started my business part time, and remain so, interfacing with all sorts of suppliers and entrepreneurs that are local. I personally applaud firms willing to take the risk like Detroit Bikes does, and hope we see many more in the years to come. I know we will because we already have seen that change in manufacturing starting about 10 years ago, when energy prices went sky high, then fell through the bottom. Many new chemical firms, plastics firms, and slowly large industrial manufacturing firms, have been in the process of re-shoring for years. Trump's just trying to create a favorable environment to continue that. He's listened to businesses who have been telling our government for years to do what he is doing. The tax cuts are HUGE, and now these trade negotiations will eventually be critical as well.

By the way, ITS NEVER TOO late to start a business, or to try to compete in any industry. Thats a defeatist attitude (to say its 'too late'), and the American business people who are successful thrive despite obstacles or excuses that others throw at them. Its about time they are getting a little bit of help from our own government. Nice to see. Lets hope for all of us it continues. I'm personally tried of seeing many of my long time customers disappear over the past 35 years, their wages get crushed, jobs lost, and losing out to other countries that persistently steal our IP, totally ignore all patents, and copyrights, copy everything and anything, while we are held to a much higher standard of ethics, and worse those cheaters are endorsed by their own government abroad to keep on doing it, and adding spies daily to keep it up. The bike industry has been no different than any other industry in terms of lost jobs and destroyed businesses, HOWEVER ebikes could be a massive paradigm shift and a catalyst to change the competitive landscape for the betterment of American consumers, inducing more exercise, better health, lower pollution, and maybe even more well paying jobs. I've put my own personal money at stake in ebikes, at an age when most other people are contemplating retirement or trying to amass the bulk of their savings during 'peak earnings years'. I want a better lifestyle for all Americans, and better paying jobs. I make nothing personally from this business now and the past 3 years, other than continued re-investment. No wage, no income. And I have 3 kids to put through college. Its an investment of many hours beyond a normal corporate job. Sweat equity all the way. There wont be a 'retirement' for me for the next 20 years at least. I'm giving back to the community, my children, and future generations by encouraging a return to a more healthy lifestyle. One that involves riding, and not sitting in a car, or sitting behind a PC all day. My only 'reward' is seeing someone overweight, or older with physical limitations, at least attempting to get back out there and doing some exercise. It starts with baby steps, and I know its working because I get the occasional rare thank you note from someone who will tell me they are riding more than they ever had been in the prior 30 years of their life, and now in better shape, or losing weight, or just excited to be able to get around. I'm motivated by seeing their progress, and getting that next person out biking and exercising again. If they are smiling, that's even better. We can all use some small moments of joy in our lives, to give us a break from the toxic daily mainstream news.
 
I won't be buying any bike that has a 25% tariff that's for sure!! I am hoping Rad Power bikes don't fall under this and raise all the prices as I will be out of the market. These things are expensive enough as is. I thought it only applied to China made bikes?
 
Back