Trump Tariffs: +25% all China bikes and Components to USA. Market disruption for sure

[Yamanote]

Made in China (not Taiwan) ebikes hammered by 25% customs duty for import to USA from May 10. Not only direct sellers like Addmotor, but all ebike brands that are sourcing their bikes and parts from China, including components like Bafang drive trains. Get your bike now before prices are sure to rise. Good chance for Euro bikes (those not made in China) to get easy market share in USA. If it were me, I would go for the jugular, and knock out cheapie China bikes. Be interesting to see how the value bike manufacturers and marketers deal with the problem. No benefit to anybody (USA does not have a substantial bike manufacturing or components industry), just pure 25% cash duty that goes direct to US government.

 

[Ebiker01]

Made in China (not Taiwan) ebikes hammered by 25% customs duty for import to USA from May 10. Not only direct sellers like Addmotor, but all ebike brands that are sourcing their bikes and parts from China, including components like Bafang drive trains. Get your bike now before prices are sure to rise. Good chance for Euro bikes (those not made in China) to get easy market share in USA. If it were me, I would go for the jugular, and knock out cheapie China bikes. Be interesting to see how the value bike manufacturers and marketers deal with the problem. No benefit to anybody (USA does not have a substantial bike manufacturing or components industry), just pure 25% cash duty that goes direct to US government. View attachment 33210

It comes from Us consumers pockets and It goes in the Gov pockets. The importers pay for the tariff increase by raising the prices of what we have to pay.
With higher prices comes lower demand and this will balance out evenly.

Instead of 1milion washing machines sold at 450$ each ,Only 700.000 will be sold at 699$ each?.


But with less production in China as a direct consequence , it’s economy will be hurting long term. Massive lay offs and factories closures.
It is a pretty aggressive and probably a very smart move (as it is forcing their economy to stagnate and contract) on behalf of our President.

Makes no sense economically in the way of having a benefit to Us inhabitants. We have to pay higher price for that 750watt motor....

 

[rich c]

Did anyone not buy an eBike after the last 25% tariff? I heard a lot of complaints, but a lot of the companies wrote it off and everyone just kept on buying. How did that change China's economy? I thought we are still setting records in trade deficits?

 

[harryS]

RichC, must be enough margin in them Chinese e-bikes to support the current 10% tariff that was in place on them. Another 15% though is probably taking bread off the table.

Cat, though, already being hurt by higher steel prices, isn't going to be helped by slower China sales.

 

[tomjasz]

Balance out? Seriously? How do small resellers get anything but screwed?

There was no prior 25%.

Exactly, and wasn't universally applied.

 

[rich c]

RichC, must be enough margin in them Chinese e-bikes to support the current 10% tariff that was in place on them. Another 15% though is probably taking bread off the table.

Cat, though, already being hurt by higher steel prices, isn't going to be helped by slower China sales.

I imagine steel prices are still incredibly volatile. Mountains of steel go through our plants. When I was still working, Cat spent a ton to set up factories in China. No idea how that is going now! Sales never did meet expectations. Chinese contractors wanted simple machines with no operator comfort. They basically wanted 1950 generation machines.

 

[rich c]

There was no prior 25%. There was 10% which all the importers sucked up hoping there would be a trade deal. Hope springs eternal.

Better check your facts. Last August 23rd, eBike tariffs were 25%. https://www.bicycleretailer.com/ind...-ustr-will-take-effect-august-23#.XNnKHRZOnYU

 

[tomjasz]

Fact is it’s been hit or miss. That is part of the frustration. Lack of predictability. It sucks.

 

[Yamanote]

It comes from Us consumers pockets and It goes in the Gov pockets. The importers pay for the tariff increase by raising the prices of what we have to pay.
With higher prices comes lower demand and this will balance out evenly.

Instead of 1milion washing machines sold at 450$ each ,Only 700.000 will be sold at 699$ each?.


But with less production in China as a direct consequence , it’s economy will be hurting long term. Massive lay offs and factories closures.
It is a pretty aggressive and probably a very smart move (as it is forcing their economy to stagnate and contract) on behalf of our President.

Makes no sense economically in the way of having a benefit to Us inhabitants. We have to pay higher price for that 750watt motor....

The problem here is the US economy has completely realigned and is no longer able to support sweat shop and high density factories to produce cheap consumer goods. The reality is that better to have China make this stuff with there massive population, while technology, design, software is the focus in the USA. Problem is USA is not investing in enough infrastructure and education to take full advantage of USA strengths. Does anyone really think sneaker factories are coming to the USA. Amer

Better check your facts. Last August 23rd, eBike tariffs were 25%. https://www.bicycleretailer.com/ind...-ustr-will-take-effect-august-23#.XNnKHRZOnYU

You are correct - just checked the USTR tariff list and found harmonized tariff schedule subhead 8711.60.00, which is "Motorcycles (incl. mopeds) and cycles, w/electric motor for propulsion." With respect.

The question is how the China manufacturers can maintain pricing, unless they accept lower margins or loss of share. So either their prices were too high prior to tariffs, they are just accepting thiner margins, or dumping.

I would think the biggest threat is to the US bike shops that sell value bikes assembled from China components. The recent multi part Bafang factory series by EBR did not seem to mention any issue with tariffs to the USA.

Anyway, regardless, either the Chinese exporters are dumping/sucking up the tariff or they have raised prices and the US consumers are paying. Neither is good. I don't thing there are any US manufacturers of quality ebike components, like drive trains, so doesn't seem to do any good for anybody and a net loss to society.

 

[jazz]

I am all for it if it aids towards the prevention of U.S. intellectual property theft. 1 in 5 U.S. companies say that China has stolen their IP in the past year.

 

[tomjasz]

I am all for it if it aids towards the prevention of U.S. intellectual property theft. 1 in 5 U.S. companies say that China has stolen their IP in the past year.

We spend more on walls than cyber protection. How does a $100 more for a washing machine protect intellectual property theft? Seems to me not funding cyber security protection would be more direct. Regardless I do agree!

 

[AZOldTech]

I am all for it if it aids towards the prevention of U.S. intellectual property theft. 1 in 5 U.S. companies say that China has stolen their IP in the past year.

Here is a good article on how America's industrial revolution was built by stealing intellectual property... So U.S. hypocrites comes to mind...
Was America’s Industrial Revolution Based on Trade Secret Theft?
https://www.ipwatchdog.com/2017/07/...revolution-based-trade-secret-theft/id=85377/

 

[AZOldTech]

Made in China (not Taiwan) ebikes hammered by 25% customs duty for import to USA from May 10. Not only direct sellers like Addmotor, but all ebike brands that are sourcing their bikes and parts from China, including components like Bafang drive trains. Get your bike now before prices are sure to rise. Good chance for Euro bikes (those not made in China) to get easy market share in USA. If it were me, I would go for the jugular, and knock out cheapie China bikes. Be interesting to see how the value bike manufacturers and marketers deal with the problem. No benefit to anybody (USA does not have a substantial bike manufacturing or components industry), just pure 25% cash duty that goes direct to US government. View attachment 33210

Trump Trade War Just Raised Taxes On U.S. Consumers By Tens Of Billions of Dollars
The president keeps falsely claiming that China is paying his higher tariffs, but economists point out that Americans, not China, pay those costs.
05/10/2019 04:04 pm ET
huffpost.com

 

[Ian Moone]

Trump Trade War Just Raised Taxes On U.S. Consumers By Tens Of Billions of Dollars
The president keeps falsely claiming that China is paying his higher tariffs, but economists point out that Americans, not China, pay those costs.
05/10/2019 04:04 pm ET
huffpost.com

Yep, Just like Mexico is paying for the Wall , Right ? LOL. ?

 

[Handlebars]

0

Yep, Just like Mexico is paying for the Wall , Right ? LOL. ?

All that hysteria fell flat. Mexico is paying for thousands of troops and China is paying for tariffs.

 

[Handlebars]

Meanwhile the same people demand higher taxes to pay for the climate scare stories. NOTHING will be accomplished by paying higher fuel costs except the poor get poorer and the rich get richer off the self-hating suckers. This is what happens when grown men are frightened by little girls.

 

[tomjasz]

China is paying for tariffs.

Huh. WOW! how do I get them to pay my bill? They haven't paid a dime yet.

 

[Handlebars]

Huh. WOW! how do I get them to pay my bill?

#1. They pay for the tariffs by devaluing their currency and pumping money into their businesses.

 

[Greencat]

#1. They pay for the tariffs by devaluing their currency and pumping money into their businesses.

This will be great news for the importer if it was true. You are saying the Chinese reduce the price by 25% by devaluing the currency. Its actually gone in the other direction.
US companies have to pay that 25% to US Customs in order to retrieve their goods from the dock.

 

[Handlebars]

You are saying the Chinese reduce the price by 25% by devaluing the currency. Its actually gone in the other direction.

Oh. so your claim is that they RAISED the value of their currency? That the price has gone up? Don't prices generally go up? Please explain!

US companies have to pay that 25% to US Customs in order to retrieve their goods from the dock.

That is what a tariff is. You are already aware of what my claim is - and it isn't that they pay Thomas' bills. And it isn't that they pay the tariff. They pay FOR the tariff.