Barrettscv 

Bikes, bike accessories, components and even steel frame building materials are going to get more expensive;

https://www.bikeradar.com/us/news/article/us-tariffs-bicycles-52947/

02Giant 

I should be able to reduce my spending on cycling components, at least for a while.

Barrettscv 

I'm happy I just procured components for my Pinarello.

tcs

Some

Perhaps even most. But not all.

Note: For the purpose of the discussion on new tariffs on Chinese bicycle goods, Taiwan as a point of origin is not China.

BTW, I just built some new wheels for my bike. Source(s) of parts: Hubs - Taiwan. Spokes - Belgium. Rims - UK. Rim strip - France. Quick releases - Taiwan. Cassette - Japan. Truing stand - USA.

bruce19

Maga

A friend works for a company that just spent $2 M to build a plant on the west coast. They pack and ship alfalfa. Hired a bunch of people and got to work. Making a lot of money. Then the tariffs. China stopped buying and started importing alfalfa from South America. They closed the plant and everyone lost their jobs.

Barrettscv 

If the tariffs remain in place long enough, almost all manufacturers will adjust pricing upwards. Any company that has a major competitor that is forced to increase prices significantly due to tariffs will adjust their pricing to improve profits. It's not just Chinese products that will be more costly, it effects the entire market.

Retro Grouch 

I don't really have anything to add, I just wanted to get a post in before the lock.

indyfabz

IBTM/L

Getting a new wheelset built for my tourer/commuter. Deore hubs. DT Swiss Alpine III spokes. 700c, 36H, Rhyno Lite rims. Should be ready late next week. After 8 seasons, the extensive rim wear of the LHT's original wheetsel has made them dangerous to ride. Also, the rear hub is pitted. Liking things to match, I decided to go with a new from hub as well. I will probably donate the hubs to a youth cycling program.

Doubt I will need any other major purchases any time soon.

prairiepedaler

Don't Americans have $800 duty free in import purchases when they are buying something outside the USA?

tcs

If they're satisfied with their market share at the new level of business at the higher consumer prices, perhaps.

rumrunn6

I buy used, so I guess the results will trickle down ...?

Barrettscv 

Yes!

The new tariffs will give off-shore on-line sellers of components and accessories in the UK and Europe an advantage.

Barrettscv 

I'm hoping my C&V collection will be come a little more valuable. I'm glad I completed all my updates to my bike collection earlier this year. I won't be spending as freely on new components in the future for a number of reasons.

The C&V world will change with upgrades becoming more costly. Will buyers look for used instead of new? Hard to say.

Cyclist0108

How much bike stuff is made in The People's Republic of China vs. Taiwan? I'm aware that carbon frames often are, but don't most of the rest of so-called "Chinese" imports (like the aluminum and steel frames made in Giant's factories) actually originate from Taiwan (which is not the target of the trade sanctions)? Shimano parts, for example, are made primarily in Malaysia and Japan.

I get the feeling that the "bike industry" is using this as an excuse for across-the-board price increases.

If the only part made in PRC is the bike's carbon frame, and let's say the frame is 1/2 the total cost of the bike, the bike price should go up 12.5%, not 25%, if there is a 25% import duty on the carbon frame.

Barrettscv 

This is an excellent summery of the situation. My company uses imported bearing steel, which is no longer made by anyone in the United States. Imported "bar stock" steel was hit with a 25% tariff this summer. The steel contributes 30% to the cost of the finished product. This created an instant 7% price increase on product coming out of our factory in Indiana. We also import nearly identical products from Japan. Finished product from Japan was not effected. Imported Japanese product did not get the same price bump, but prices will go up.

Cyclist0108

So is ALL imported bar stock steel taxed with the 25% tariff, regardless of whether it is coming from POC, Taiwan, Japan, or wherever there isn't an exemption?

If so, I was under the false impression it was specifically targeting POC.

Barrettscv 

I'm not sure if all steel imports were hit. However, our steel comes from our own factory in Japan and it was hit with a 25% tariff.

tcs

I Googled around but couldn't find the answer: Do tariffs on finished goods apply on a prorated basis per source of content percentage, or do they apply on the completed item per point of last major transformation?

Cyclist0108

That is exactly what I was asking, and I was under the very false impression that it was specifically targeted at China.

(This was the one thing I gave Trump a tiny, grudging amount of credit for. LOL.)

Cyclist0108

This is also a very important question. Thanks for taking a look!

Wildwood 

Trade wars primarily serve inflation.
Fact.

Barrettscv 

Exactly, the consumer is the biggest loser and almost no-one benefits.

Wildwood 

Inflationary times are followed by recession, therefore those in society who can ride out recessions benefit.
Those citizens fixed income dependent are hurt most.
Economics 101.

coffeesnob

Wait till china gets a bunch of trash in with the alfalfa.

zippifish

Noticed Trek has bumped up their prices on the 2019 bikes, been looking at the Domane SL most have increased $180 to $200, SLR looks like it got a $300 hike since checking prices in the last week or so.