In a statement on Monday, US President Donald Trump announced a new tariff on Chinese goods arriving into the country.
From next Monday, 24 September, the tariffs will be introduced at 10 percent, before increasing to 25 percent at the end of the year.
The tariffs will affect $200 billion worth of Chinese imports, of which $1 billion is reported by BicycleRetailer.com to be cycling products.
- Recalls and important safety notices from the bike industry
- Proposed change in law will reduce legal access for accident claims
Suppliers are likely to be charged on arrival for orders currently in transit due to the short time frame involved.
In the longer term, wholesale prices for complete bikes, components and accessories, as well as tools and machinery, are all expected to rise, although it will be up to retailers to decide how much of the increase to pass on to customers.
Speaking to BicycleRetailer.com, campaign group PeopleForBikes’ Alex Loggerman said on the tariff announcement: "we are deeply concerned that this $250 million annual tax increase for the bicycle industry will risk domestic jobs and make bicycles less affordable for Americans.
“The Administration's findings under its Section 301 investigation are not aligned with what the bicycle industry has experienced.
“Our industry has not been impacted by the underlying theft of intellectual property or advanced technology in China that is the basis for this action. We have aggressively fought against these tariff increases and worked tirelessly to educate decision makers on our industry, our supply chain, and the impact these tariffs will have.
“Tonight’s news is disappointing and seemingly well outside the intent of the investigation.”
However, Saris Cycle Group, which makes Saris car racks, CycleOps indoor trainers and PowerTap power meters, welcomed the tariff hikes.
In a statement addressed to the Office of the United States Trade Representatives, which BicycleRetailer obtained, Saris Cycle Group owner and president Chris Fortune said: "these increased tariffs will help level the playing field for American manufacturers like Saris.
“We are not asking for special treatment, but rather for an equal playing field in a non-discriminatory business environment.
“We are invigorated by competition and our commitment to American craftsmanship continues to serve us well. However, without these tariffs, we will be facing an unfair disadvantage. Our competitors will have cost advantages that will be incredibly difficult to overcome."
Safety products including helmets and bike lights are said to be exempted from the new tariff.
On the announcement, President Trump said: “For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies. We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly.
“But, so far, China has been unwilling to change its practices.”
Do you welcome the tariff increases? Are you worried about the cost of your bikes and gear? Let us know in the comments below.
Read the original story from BicycleRetailer here.