Tariffs and eBike Prices

[Acey]

Dear Mark,

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 four percent to 29 percent. These tariffs will go into effect August 23.

You can still take action to fight the latest round of proposed tariffs.

In July, the USTR proposed a 10 percent tariff increase on most other bike products made in China?, then later stated that rate may further increase to 25 percent.

Act today? to help prevent more tariffs from being imposed on our industry. Use the button below to take action and oppose the proposed 10-25 percent tariff that would make most bicycles and bicycle products more expensive.

ACT AGAINST NEW TARIFFS ​

For a listing of the items included in the proposed comprehensive tariff increase on Chinese-made bike products, visit our tariff resources page, which also includes a recording of our recent webinar.

Thanks for taking action.

— The PeopleForBikes team

 

[Acey]

https://www.bicycleretailer.com/ind...ses-25-tariff-china-made-e-bikes#.W2tzI_5KiMJ

FYI: Updated info from Bicycle Retailer

 

[heytchap]

Tora (and other manufactturers) will start moving majority of his company operations in the US. Which means more jobs for Americans.

I don't know where you get that delusion from. Allow me to remind you that Tora just spent an obscene amount of money standing up a production facility in China with custom tooling and his operation will remain there, tariffs or not.

What does that mean for us, the end user? Increased prices, not bicycle production returning stateside.

I really dont understand where you even got this impression from or how you could be so wrong.

 

[Trail Cruiser]

I don't know where you get that delusion from. Allow me to remind you that Tora just spent an obscene amount of money standing up a production facility in China with custom tooling and his operation will remain there, tariffs or not.

What does that mean for us, the end user? Increased prices, not bicycle production returning stateside.

I really dont understand where you even got this impression from or how you could be so wrong.

I expect lots of negative reactions here but let's be civil and agree to disagree.

It's more of a political gesture to set the tone that American economy and american jobs come first. Of course, there will be lots of unwanted effects (short term) but it is part of the growing pains, there will be more fine tuning in the economic policies before real american jobs and improvement of American economy will eventually happen.

Lots of businesses that take advantage of the current arrangement will be hurt but the beauty of American government is that people can still voice out and sway their politicians. Otherwise, these politicians will not be in office come next election.

Peace brothers and sisters.

 

[Mr. Coffee]

...
It's more of a political gesture to set the tone that American economy and american jobs come first. Of course, there will be lots of unwanted effects (short term) but it is part of the growing pains, there will be more fine tuning in the economic policies before real american jobs and improvement of American economy will eventually happen...

That logic was used before. When international trading systems fall apart the result(s) are economic collapse and war. Of course, the last two times this happened (early 1900s and late 1920s) the international trading system was much less complex than it is today. So it is reasonable to expect the results to be far, far worse than the 1930s and 1940s were. If that doesn't scare you I don't know what will.

This is a hot stove that nearly all of us know better than to touch.

And also, there are many subjects where people of good faith can "agree to disagree". If you want to experiment with explosives in my kitchen we cannot agree to disagree.

 

[Trail Cruiser]

There's more damage done to the American economy than meet the eyes. A lot of those lop sided trade policies and deals happened under the table and behind our backs. Tariff alone cannot undo all the bad things that happened to our economy .

All those geniuses out there should run for office so we can bring our businesses and jobs back here.

 

[heytchap]

I expect lots of negative reactions here but let's be civil and agree to disagree.

It's more of a political gesture to set the tone that American economy and american jobs come first. Of course, there will be lots of unwanted effects (short term) but it is part of the growing pains, there will be more fine tuning in the economic policies before real american jobs and improvement of American economy will eventually happen.

What's there to agree to disagree on? These manufacturing jobs aren't coming back. The sheer amount of industrial capacity and capability that would need to return to the US would rival a second industrial revolution and there's nearly 0 chance for something like that to happen. American production is a dog whistle for "they're taking our jobs" but if "they" - those in charge - wanted to do something for the American worker like on-shoring jobs, they could instead start with raising current wages and working within the means we currently have.

Jobs aren't coming back because the costs associated from all aspects will be too high. Why deal with rebuilding already-built infrastructure here in the US, absorbing that cost, and then pay US workers more when all of that already exists elsewhere for cheaper?

Factories will not be built here, costs are too high, those jobs are never coming back.
Not going to happen, bud.

The US is and will remain a service economy; we offer our minds to the world, not our manual labor.

Now due to our glorious leader's outbursts, we can lose an additional percentage of our income on what's basically a 25% tax on many goods and what do we get for it? More expensive goods, less purchasing power, worse quality of life. Thanks. I'm really pleased that this "fine tuning" of economic policies has brought so much bounty to our shores. Things were fine before, trade was working, prices were decent; what do we have to show for it now? Nothing - thanks to you and your ilk!

 

[PowerMe]

I think it's a fantasy that all these bicycle companies, including ebike companies, are going to suddenly shift their manufacturing to the U.S. Maybe if they got a huge tax break on doing so (upwards of 30% or more) they'd be inclined to think about the U.S., but there's no such incentive. It's always about the bottom line $$$ for companies and really, are consumers going to start paying $5K for a bike they used to be able to get for $2.9K to $3.5K?

 

[Trail Cruiser]

What's there to agree to disagree on? These manufacturing jobs aren't coming back. The sheer amount of industrial capacity and capability that would need to return to the US would rival a second industrial revolution and there's nearly 0 chance for something like that to happen. American production is a dog whistle for "they're taking our jobs" but if "they" - those in charge - wanted to do something for the American worker like on-shoring jobs, they could instead start with raising current wages and working within the means we currently have.

Jobs aren't coming back because the costs associated from all aspects will be too high. Why deal with rebuilding already-built infrastructure here in the US, absorbing that cost, and then pay US workers more when all of that already exists elsewhere for cheaper?

Factories will not be built here, costs are too high, those jobs are never coming back.
Not going to happen, bud.

The US is and will remain a service economy; we offer our minds to the world, not our manual labor.

Now due to our glorious leader's outbursts, we can lose an additional percentage of our income on what's basically a 25% tax on many goods and what do we get for it? More expensive goods, less purchasing power, worse quality of life. Thanks. I'm really pleased that this "fine tuning" of economic policies has brought so much bounty to our shores. Things were fine before, trade was working, prices were decent; what do we have to show for it now? Nothing - thanks to you and your ilk!

You're right, those businesses are not coming back. But make our economy strong again by government help and by having new kind of jobs and businesses based on American creativity and ingenuity. Heavy fine to knock off products and copy cats that destroys the business of original creative people.

 

[Justin Fischer]

Anyone have an idea how this will affect Juiced's Scrambler Indiegogo campaign? If all of these bikes are being sold at $999 and Tora doesn't have a 25% profit margin, they could end up losing money on all the bikes already 'sold' (because they're still being built right now in China and have yet to come through U.S. Customs) Could be bad.

Edit: The Scrambler page was just updated with this:
MAJOR UPDATE - August 8th 2018: The New 25% E-Bike Tariffs will now go into effect. All orders place prior to Aug 9th 2018. Will not be effected by the price increase. Scrambler orders made after tomorrow Aug 9 will be subjected to the 25% increase. Please get your orders in before tomorrow August 9th 2018 to avoid the price increase. YES! You have one more day to take advantage this lower price.

 

[Deleted member 4210]

two ebike suppliers have already advised dealers that prices are increasing 25% effective August 23rd.

 

[heytchap]

You're right, those businesses are not coming back. But make our economy strong again by government help and by having new kind of jibs and businesses based on American creativity and ingenuity. Heavy fine to knock off products and copy cats that destroys the business of original creative people.

It sounds like you dont want a free market, then; it sounds like you want a state sanctioned market of what can or cannot be sold within the country. That doesn't sound like the capitalist America I know. If market forces dictate that consumers want knock-off and copy-cat products, then that's what should be available. This sounds like very large interference from a small government...

Let's look at other arguments: "make our economy strong by government help" -- so.. socialism? I'd imagine you're quite against socialism ordinarily but not under these circumstances.

"businesses based on American creativity and ingenuity" -- the same as it is now? Americans don't manufacture, we think and produce that way.

Basically, the take away is that you're fine with our current government taking advantage of you. I'm not and never will be. All of this "the tax cut increased my paycheck" nonsense is instantly wiped out and made further painful by this idiocy. I'm over it. I'm sick of idiots supporting this guy, and I'm sick of his stupid decisions impacting my life.

 

[Trail Cruiser]

You are completely wrong my friend. I want strong government that protects and promotes free and FAIR market.

You already know what a lawless, free for all market is where the rich get richer and the poor has no rights. At least we have a working (although not perfect) government.

 

[Stromer2work]

I'm having seller's regrets already selling two like new evo's for $100 hundred dollar loss each. I should have held onto one. Oh well, too many toys and they weren't getting used much, they have new good homes, at pre-tariff prices to the lucky buyers. I did plan on buying a different ebike such as a more powerful mountain bike with water bottle bosses and a larger battery this year or next year. However, if the prices go up, I will be spending my disposable income elsewhere on other "Made in China" merchandise.

Mark Peralta, go turn on your American made TV and watch more Fox news so you can quote more Sean Hannity "my friend". PS, turn on your spell check, people may take your arguments more seriously if they didn't have so many spelling mistakes. Better yet, how about get out and ride...

 

[Trail Cruiser]

Focusing solely on price of goods as basis for economic status is a very short sighted view. It has turned many people into consumer zombies, rushing for the next big discount. Without even bothering to check these foreign made products if they are expired, or fake products, or rejects from quality control.

Let's look at the bigger picture, businesses are shutting down in America and shipped abroad. That same product comes back to America and sold at walmarts and other big stores. The jobless people from the businesses that shut down now works at walmart with their meager pays.

Since they have small pays they are on the lookout for anything that are discounted. In order to survive, many americans become consumer zombies, slaves to cheap goods.

From being proud of American engenuity and creativity, most Americans are degraded to consumer zombies as a means of survival. Very sad.

I would say, government has to incentivize American inventiveness, ingenuity, and creativity and also protect them with existing patent and trademark laws to discourage fakes and knockoffs.

Either way, government is not in full control, big businesses are, since most of them are transnational. They can just move from one country to another, whichever provides more profit.

 

[Acey]

Forums should follow the same rules as party conversation: never talk about religion, politics or sex.

 

[Trail Cruiser]

I will stop responding on this thread since it does not promote healthy exchange of opinions but rather provokes personal angers, throwing insults to people that they don't agree with. Bye.

 

[Countrygent]

The EU had targeted Chinese ebikes as well. But the end result is not going to be magical inexpensive European or American made bikes and ebikes. It will remove the cheap bottom-end option choices. A lot of people who might have afforded a Chinese bike will have no bike. As for bikes assembled in Europe or the USA, they might source some or mostly non-Chinese components ... a bonanza for other Asian parts producers ... but the prices will be problematic both in parts and assembly. The idea tariffs protect or promote domestic job creation, I’m guessing, is false. But political pressure is being exerted on China for other reasons almost completely unrelated to ebikes. It’s all politics and leverage over a lot of other issues, like currency valuation, central bank policies ... big boy stuff.

 

[Acey]

Focusing solely on price of goods as basis for economic status is a very short sighted view. It has turned many people into consumer zombies, rushing for the next big discount. Without even bothering to check these foreign made products if they are expired, or fake products, or rejects from quality control.

Do you know who put out that video? RT is Russian TV. They're registered as Foreign Agents...

"RT America is a TV channel based in Washington, D.C., and part of the RT network, a global multilingual television news network based in Moscow, Russia, and funded by the Russian government.[1] RT America has studios and bureaus in New York City, Miami, and Los Angeles.[2][3] The channel is the home and the production base of RT's U.S.-based programs.

"RT America focuses on covering news in the United States from a Russian perspective. Programs are hosted by American journalists. Similarly, most guests are American (and sometimes Canadian) activists, academics, speakers and analysts with alternative perspectives on "mainstream" issues. The channel covers issues that see lesser coverage in the mainstream media, such as using non-GMO ingredients in foods, capitalism, growing wealth inequality, corruption in politics, peace and environmental issues. It maintains a separate schedule of programs each weekday from 4 p.m. to 12 midnight Eastern Time, and like its counterpart in the UK, it simulcasts RT International at all other times.

"RT America is the channel for RT content delivery to the United States cable and satellite providers. The channel is also available on Canadian pay TV providers. In addition, the channel is also available worldwide through various means including: online through RT's primary website, Pluto.tv, mobile phone apps, and channel apps on platforms such as Roku and Apple TV.
The channel is registered as a "foreign agent" with the United States Department of Justice under the Foreign Agents Registration Act. A 2017 report by the United States Intelligence Community characterized RT as "The Kremlin’s principal international propaganda outlet" and said that RT America had been set up as an autonomous nonprofit organization "to avoid the Foreign Agents Registration Act".[4][5]"
https://en.wikipedia.org/wiki/RT_America

 

[Big Tom]

Everyone realizes that the USA is a small market compared to Asia and Europe? They really don't care about the US market.

There is a USA company that uses made in USA parts to make bikes, motor kits, and lithium batteries. Kit price with decent sized battery is around $1200 and it is a nice setup. You can put the kits on almost any bike - the kit comes with a wheel complete with up to 10 speed freewheel and most wheel sizes including 29"