Go Back  Bike Forums > Bike Forums > General Cycling Discussion
Reload this Page >

Chinese Tariffs and Bike Prices

General Cycling Discussion Have a cycling related question or comment that doesn't fit in one of the other specialty forums? Drop on in and post in here! When possible, please select the forum above that most fits your post!

Chinese Tariffs and Bike Prices

Old 05-14-19, 08:06 AM
  #1  
HarborBandS
HarborBandS
Thread Starter
 
Join Date: Jun 2018
Location: Chicago Western Suburbs
Posts: 241
Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 151 Post(s)
Liked 10 Times in 5 Posts
Chinese Tariffs and Bike Prices

NPR had a story this past week about how the 25% tariffs on Chinese imports could have a big impact on the bicycle industry, and put further pressure on struggling bike shops. It is expected that nearly all of the 25% tariffs on imported bicycles will be passed on to consumers in the form of higher prices. So a $1,000 bike imported from China will cost $1,250, and a $4,000 bike will cost $5,000.

I imagine this will not affect Taiwanese production. And there are still a few American bicycle manufacturers out there, but many are now boutique custom steel frame shops like Waterford and Speedvagen.
HarborBandS is offline  
Old 05-14-19, 08:32 AM
  #2  
Trevtassie
Senior Member
 
Join Date: Jun 2015
Location: Down Under
Posts: 1,124

Bikes: A steel framed 26" off road tourer from a manufacturer who thinks they are cool. Giant Anthem. Trek 720 Multiroad pub bike. 10 kids bikes all under 20". Assorted waifs and unfinished projects.

Mentioned: 7 Post(s)
Tagged: 0 Thread(s)
Quoted: 315 Post(s)
Liked 33 Times in 17 Posts
Uh huh, Tariff is just a nice way of say a tax. The person responsible for it somehow seems to think the Chinese will be paying it!!!!!!
Trevtassie is offline  
Likes For Trevtassie:
Old 05-14-19, 08:36 AM
  #3  
pdlamb
Senior Member
 
Join Date: Dec 2010
Location: northern Deep South
Posts: 5,141

Bikes: Fuji Touring, Novara Randonee

Mentioned: 26 Post(s)
Tagged: 0 Thread(s)
Quoted: 934 Post(s)
Liked 17 Times in 11 Posts
$100 XMart bikes are going to cost $125 pretty soon -- or have even more crappy plastic parts. Other frames are surely going to take a hit -- does anyone make carbon fiber bike frames outside China?

AFAIK, most of the higher end parts are made in Taiwan, Japan, Thailand, etc. I wouldn't be surprised to see assembly plants going up in other parts of SE Asia to avoid the tariffs, especially since there doesn't seem to be any indications this will be resolved soon. I'd think the big "manufacturers" like Trek, Specialized, etc., will find new suppliers to do the assembly and put on their decals.
pdlamb is offline  
Likes For pdlamb:
Old 05-14-19, 08:53 AM
  #4  
indyfabz
Senior Member
 
Join Date: Jan 2010
Posts: 22,217
Mentioned: 162 Post(s)
Tagged: 1 Thread(s)
Quoted: 8442 Post(s)
Liked 228 Times in 147 Posts
IBTM/L

I think you mean U.S. tariffs.
indyfabz is offline  
Old 05-14-19, 08:55 AM
  #5  
AlmostTrick
Tortoise Wins by a Hare!
 
AlmostTrick's Avatar
 
Join Date: Feb 2006
Location: Looney Tunes, IL
Posts: 6,454

Bikes: Wabi Special FG, Raleigh Roper, Nashbar AL-1, Miyata One Hundred, '68 Schwinn Orange Krate, and More!!

Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 1014 Post(s)
Liked 64 Times in 38 Posts
Considering the low cost of Chinese goods, the pittance that their workers are paid, and comparisons of lifestyle/wealth between the two countries, I don't see how anyone can say the US is/was getting a bad deal. Saying China has been exploiting the US always sounded like the greedy rich complaining to get even more to me.
AlmostTrick is online now  
Old 05-14-19, 08:59 AM
  #6  
AlmostTrick
Tortoise Wins by a Hare!
 
AlmostTrick's Avatar
 
Join Date: Feb 2006
Location: Looney Tunes, IL
Posts: 6,454

Bikes: Wabi Special FG, Raleigh Roper, Nashbar AL-1, Miyata One Hundred, '68 Schwinn Orange Krate, and More!!

Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 1014 Post(s)
Liked 64 Times in 38 Posts
Originally Posted by pdlamb View Post
I wouldn't be surprised to see assembly plants going up in other parts of SE Asia to avoid the tariffs, especially since there doesn't seem to be any indications this will be resolved soon. I'd think the big "manufacturers" like Trek, Specialized, etc., will find new suppliers to do the assembly and put on their decals.
It will take a while to move or set up huge plants. I expect tariffs will be worked out before that.
AlmostTrick is online now  
Old 05-14-19, 09:11 AM
  #7  
TimothyH
- Soli Deo Gloria -
 
TimothyH's Avatar
 
Join Date: Aug 2015
Location: Northwest Georgia
Posts: 13,801

Bikes: 2018 Rodriguez Custom Fixed Gear, 2017 Niner RLT 9 RDO, 2015 Bianchi Pista, 2002 Fuji Robaix

Mentioned: 213 Post(s)
Tagged: 0 Thread(s)
Quoted: 6218 Post(s)
Liked 213 Times in 147 Posts
Originally Posted by pdlamb View Post
does anyone make carbon fiber bike frames outside China?
Niner frames are made in Vietnam.

Vietnam has a decent sized carbon industry. I wouldn't be surprised if other manufacturers also subcontract there.


-Tim-
TimothyH is offline  
Old 05-14-19, 09:13 AM
  #8  
bakerjw
Senior Member
 
Join Date: Sep 2008
Location: NE Tennessee
Posts: 731

Bikes: Giant TCR/Surly Karate Monkey/Foundry FireTower/Curtlo Tandem

Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 115 Post(s)
Liked 25 Times in 24 Posts
Definitely ****...
bakerjw is offline  
Old 05-14-19, 09:21 AM
  #9  
AlmostTrick
Tortoise Wins by a Hare!
 
AlmostTrick's Avatar
 
Join Date: Feb 2006
Location: Looney Tunes, IL
Posts: 6,454

Bikes: Wabi Special FG, Raleigh Roper, Nashbar AL-1, Miyata One Hundred, '68 Schwinn Orange Krate, and More!!

Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 1014 Post(s)
Liked 64 Times in 38 Posts
Originally Posted by bakerjw View Post
Definitely ****...
And?

Tell us something regarding the subject.

It's not like everyone doesn't know this will end up locked. I always wonder why someone would post **** and nothing else. There's a poster here that does that a lot.
AlmostTrick is online now  
Old 05-14-19, 09:25 AM
  #10  
tagaproject6
Senior Member
 
tagaproject6's Avatar
 
Join Date: Aug 2009
Posts: 8,245

Bikes: Wilier Izoard XP (Record);Cinelli Xperience (Force);Specialized Allez (Rival);Bianchi Via Nirone 7 (Centaur); Colnago AC-R Disc;Colnago V1r Limited Edition;De Rosa King 3 Limited(Force 22);DeRosa Merak(Red):Pinarello Dogma 65.1 Hydro(Di2)

Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 435 Post(s)
Liked 34 Times in 21 Posts
tagaproject6 is offline  
Old 05-14-19, 09:41 AM
  #11  
BirdsBikeBinocs
Senior Member
 
BirdsBikeBinocs's Avatar
 
Join Date: Aug 2018
Posts: 322
Mentioned: 4 Post(s)
Tagged: 0 Thread(s)
Quoted: 214 Post(s)
Liked 10 Times in 8 Posts
Just be happy you're American. Would you rather be on the other end.?? I suppose you could move to China.
BirdsBikeBinocs is offline  
Old 05-14-19, 09:58 AM
  #12  
mtb_addict
Senior Member
 
Join Date: Jun 2011
Posts: 3,940
Mentioned: 22 Post(s)
Tagged: 0 Thread(s)
Quoted: 2931 Post(s)
Liked 18 Times in 17 Posts
Originally Posted by HarborBandS View Post
NPR had a story this past week about how the 25% tariffs on Chinese imports could have a big impact on the bicycle industry, and put further pressure on struggling bike shops. It is expected that nearly all of the 25% tariffs on imported bicycles will be passed on to consumers in the form of higher prices. So a $1,000 bike imported from China will cost $1,250, and a $4,000 bike will cost $5,000.

I imagine this will not affect Taiwanese production. And there are still a few American bicycle manufacturers out there, but many are now boutique custom steel frame shops like Waterford and Speedvagen.


I suspect even Taiwanese and Vietnamese bikes will be effected. Because I doubt Taiwan and Vietnam can makes everything. I bet alot of the parts in Tai/Viet bikes come from China. ( I ordered a crank bolt on Amazon. The seller is in Vietnam. When I got the part, it says "made in China." LoL).

The thing is China's efficiency cannot be beat. Very few people will be brave enough to setup shop in other cheap labor countries. It is expensive and time consuming to move your entire operation to a new country. It is fraud with risk. Shrewd businesses would hunker down for now, and endure it out til 2020...when a new President is elected in a landslide...and all China tariff eliminated.

What I wonder is how hard US bike firms and retialer will really suffer in meantime. Imagine, I can buy a China-made bike from UK w/o tariff, and have it shipped to America... UK win...US lose.

Last edited by mtb_addict; 05-14-19 at 10:13 AM.
mtb_addict is offline  
Likes For mtb_addict:
Old 05-14-19, 10:08 AM
  #13  
HarborBandS
HarborBandS
Thread Starter
 
Join Date: Jun 2018
Location: Chicago Western Suburbs
Posts: 241
Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 151 Post(s)
Liked 10 Times in 5 Posts
Originally Posted by indyfabz View Post
IBTM/L

I think you mean U.S. tariffs.
I was referring to the whole tariff situation with China, but strictly speaking about imported bicycles, you are correct!

I’m more interested in the actual impact on bicycle prices over the next year or so than a political discussion here. How widespread will the price impacts be? Are any major brands still made in Taiwan, or is it all Shenzhen China now?

Last edited by HarborBandS; 05-14-19 at 10:18 AM.
HarborBandS is offline  
Old 05-14-19, 10:14 AM
  #14  
Ogsarg
Senior Member
 
Join Date: Feb 2017
Location: Hollister, CA (not the surf town)
Posts: 610

Bikes: 2009 Specialized Roubaix, early 90's Giant Iguana

Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 245 Post(s)
Liked 23 Times in 18 Posts
Tariffs will raise prices and it won't be limited to China. Other countries can now demand more because they don't have the same competition from China and all the additional demand from companies looking for an alternative to China.

Even a U.S. company buying U.S. steel is impacted because the U.S. steel companies are raising their prices based on the increased demand and lack of competition.

At the end of the day, it's consumers who pay. It's just a tax added on to erase that tax cut you got last year.
Ogsarg is offline  
Likes For Ogsarg:
Old 05-14-19, 10:20 AM
  #15  
HarborBandS
HarborBandS
Thread Starter
 
Join Date: Jun 2018
Location: Chicago Western Suburbs
Posts: 241
Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 151 Post(s)
Liked 10 Times in 5 Posts
Say short term, will a 2020 Trek (or other big brand) cost significantly more than a 2019 Trek? How quickly or slowly will prices react?
HarborBandS is offline  
Old 05-14-19, 10:30 AM
  #16  
base2 
Senior Member
 
base2's Avatar
 
Join Date: Jun 2015
Location: Pacific Northwest
Posts: 932

Bikes: N+1

Mentioned: 12 Post(s)
Tagged: 0 Thread(s)
Quoted: 470 Post(s)
Likes: 0
Liked 49 Times in 35 Posts
So, How goes that American farmer Chapter 12 bankruptcy rate? How goes the American soybean surplus? How goes the American manufacturing cost when their foreign competitors supply chains are flooded with raw materials that used to be destined for them?

The best & most effective way to stop a trade deficit is to crash the economy and further marginalize the proletariat's purchasing power.

Lol. That anyone other than the American consumers are going to pay for this is just laughable.

MAGA (for the banks)
base2 is offline  
Likes For base2:
Old 05-14-19, 11:13 AM
  #17  
indyfabz
Senior Member
 
Join Date: Jan 2010
Posts: 22,217
Mentioned: 162 Post(s)
Tagged: 1 Thread(s)
Quoted: 8442 Post(s)
Liked 228 Times in 147 Posts
Originally Posted by Ogsarg View Post
Even a U.S. company buying U.S. steel is impacted because the U.S. steel companies are raising their prices based on the increased demand and lack of competition.

At the end of the day, it's consumers who pay. It's just a tax added on to erase that tax cut you got last year.
Glad I bought a custom, made-twelve-miles-from-my-house, ti bike several years ago. Hopefully, I won't need to replace my LHT, or anything significant on it, any time soon.

And what tax cut was that? My effective tax rate dropped a hair, but that was because I sheltered income from taxation by contributing a good amount to my HSA, which is something I did not do in 2017.
indyfabz is offline  
Old 05-14-19, 11:14 AM
  #18  
pdlamb
Senior Member
 
Join Date: Dec 2010
Location: northern Deep South
Posts: 5,141

Bikes: Fuji Touring, Novara Randonee

Mentioned: 26 Post(s)
Tagged: 0 Thread(s)
Quoted: 934 Post(s)
Liked 17 Times in 11 Posts
At the risk of circling back, other than frames and assembly, are any other major/expensive bike parts made in China? Shifters, derailers, chains, rims/spokes/hubs, tires?
pdlamb is offline  
Old 05-14-19, 11:29 AM
  #19  
Flip Flop Rider
Senior Member
 
Flip Flop Rider's Avatar
 
Join Date: Apr 2016
Location: South Carolina Upstate
Posts: 1,062

Bikes: 2010 Fuji Absolute 3.0 1994 Trek 850

Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 390 Post(s)
Likes: 0
Liked 15 Times in 10 Posts
take a vacation to China, buy bike and parts, ship them back to the U.S. to avoid the tariff!
Flip Flop Rider is offline  
Old 05-14-19, 11:48 AM
  #20  
mstateglfr 
Sunshine
 
mstateglfr's Avatar
 
Join Date: Aug 2014
Location: Des Moines, IA
Posts: 8,131

Bikes: '87 Miyata 912, '87 Schwinn Prelude, '90 Fuji Saratoga, Black Mountain Cycles Monstercross V4, '89 Novara/Centurion Ironman, '18 Diamondback Syncr, '18 handmade steel roadbike

Mentioned: 75 Post(s)
Tagged: 0 Thread(s)
Quoted: 2860 Post(s)
Likes: 0
Liked 86 Times in 60 Posts
Originally Posted by mtb_addict View Post
I suspect even Taiwanese and Vietnamese bikes will be effected. Because I doubt Taiwan and Vietnam can makes everything. I bet alot of the parts in Tai/Viet bikes come from China. ( I ordered a crank bolt on Amazon. The seller is in Vietnam. When I got the part, it says "made in China." LoL).

The thing is China's efficiency cannot be beat. Very few people will be brave enough to setup shop in other cheap labor countries. It is expensive and time consuming to move your entire operation to a new country. It is fraud with risk. Shrewd businesses would hunker down for now, and endure it out til 2020...when a new President is elected in a landslide...and all China tariff eliminated.

What I wonder is how hard US bike firms and retialer will really suffer in meantime. Imagine, I can buy a China-made bike from UK w/o tariff, and have it shipped to America... UK win...US lose.
Why would a bike from Vietnam be subject to a US tariff on Chinese made goods? The Vietnam made bike might cost more now because the brand thinks they can sell it for more, but it wouldnt cost more due to a tariff effectively forcing the cost to be more.

As for the bold italicized last comment- how does the US lose? A consumer in the US purchased a bike from overseas and it was delivered. How did the USA the country lose in that transaction?
mstateglfr is offline  
Old 05-14-19, 12:04 PM
  #21  
MEversbergII
Senior Member
 
MEversbergII's Avatar
 
Join Date: Sep 2012
Location: Lexington Park, Maryland
Posts: 1,177

Bikes: Current: Origami Crane 8, Trek 1200 Former: 2012 Schwinn Trailway

Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 57 Post(s)
Liked 10 Times in 6 Posts
Fully expect prices to go up, and if it manages to surpass any other manufacturers prices I'd expect those to move up as well (since, well, why wouldn't you take that opportunity?)

Originally Posted by Trevtassie View Post
Uh huh, Tariff is just a nice way of say a tax. The person responsible for it somehow seems to think the Chinese will be paying it!!!!!!
Yeah I'm not sure how anyone can think that's correct. It goes against the basic definition of tariff.

M.
MEversbergII is offline  
Old 05-14-19, 12:12 PM
  #22  
OBoile
Senior Member
 
Join Date: Aug 2015
Posts: 1,206
Mentioned: 13 Post(s)
Tagged: 0 Thread(s)
Quoted: 676 Post(s)
Liked 10 Times in 8 Posts
Originally Posted by pdlamb View Post
$100 XMart bikes are going to cost $125 pretty soon -- or have even more crappy plastic parts. Other frames are surely going to take a hit -- does anyone make carbon fiber bike frames outside China?

AFAIK, most of the higher end parts are made in Taiwan, Japan, Thailand, etc. I wouldn't be surprised to see assembly plants going up in other parts of SE Asia to avoid the tariffs, especially since there doesn't seem to be any indications this will be resolved soon. I'd think the big "manufacturers" like Trek, Specialized, etc., will find new suppliers to do the assembly and put on their decals.
Keep in mind that it only affects bikes sold in the USA. Bikes sold to the other 95% of the world are unaffected. It may not be worth moving building a new factory, especially if it looks like it will be resolved in the next few years.
OBoile is offline  
Old 05-14-19, 12:24 PM
  #23  
HarborBandS
HarborBandS
Thread Starter
 
Join Date: Jun 2018
Location: Chicago Western Suburbs
Posts: 241
Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 151 Post(s)
Liked 10 Times in 5 Posts
Originally Posted by indyfabz View Post
Glad I bought a custom, made-twelve-miles-from-my-house, ti bike several years ago.
This does seem like an obvious way to go. If a Big Bike Brand goes up $1,000, the extra cost of the custom bike becomes more palatable.

It's funny how coy all of the major brands are about where their bikes are made these days. Back in the 1990's when I worked at a Trek dealer, we all knew exactly which Treks were made in Taiwan and which ones were made in Wisconsin. Now I have to imagine nearly all Treks are made in China, though I do believe that Taiwan is still a player.
HarborBandS is offline  
Old 05-14-19, 01:07 PM
  #24  
Obeast
100% Certified Beast
 
Join Date: Nov 2010
Location: Arctic
Posts: 293
Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 251 Post(s)
Likes: 0
Liked 6 Times in 6 Posts
on ebay the Chinese shippers always put location as China/Hong Kong/Taiwan. So are the stuff shipped from Taiwan subjected to tariffs as well?
Obeast is offline  
Old 05-14-19, 01:10 PM
  #25  
Obeast
100% Certified Beast
 
Join Date: Nov 2010
Location: Arctic
Posts: 293
Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 251 Post(s)
Likes: 0
Liked 6 Times in 6 Posts
I like Cannondale´s strategy because they always put a big asss "Made in USA" sticker on their frame. More US manufacturers that make their stuff at home should do this. The US flag alone means nothing. I used to be a big fan of Filson gears until I stopped seeing the "made in USA" that were ubiquitous on their older stuff.

Originally Posted by HarborBandS View Post
This does seem like an obvious way to go. If a Big Bike Brand goes up $1,000, the extra cost of the custom bike becomes more palatable.

It's funny how coy all of the major brands are about where their bikes are made these days. Back in the 1990's when I worked at a Trek dealer, we all knew exactly which Treks were made in Taiwan and which ones were made in Wisconsin. Now I have to imagine nearly all Treks are made in China, though I do believe that Taiwan is still a player.
Obeast is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.