Impact of increased tariffs on bicycles and bicycle supplies (NPR Interview link

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Swalfoort
Participant
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As a freight planner, I am always interested in hearing how tariffs affect trade (which in turn relates to costs of production/costs to consumer).

This is about the best interview I have heard on the subject:
https://www.kawc.org/post/tariff-driven-bicycle-markup-will-fall-us-consumers
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It’s not technical, and should be of interest to anyone with more than a passing preoccupation with biking.

Bottom line: expect costs to go up before too long. For when and by how much, listen to the interview. More importantly, support your LBS! This may be a temporary situation, but we need to make sure the good ones weather the storm.

(edited to correct link)

  • This topic was modified 6 days, 6 hours ago by  Swalfoort. Reason: edited to correct truncated lnk

Eric
Member
#

When the trump admin imposed tariffs on washing machines the washer/dryer industry also raised prices on the non-tariff-increased dryers and ended up with increased corporate profits.

https://www.nytimes.com/2019/04/21/business/trump-tariffs-washing-machines.html

I think pretty much everything bike related at this point is from China, but don’t be surprised if there are price hikes across the board on anything bike related, even if it isn’t directly affected by the tariffs (helmets, bike parts, bike clothes, cleats, trainers, racks, etc. etc. etc.) that’s just the way capitalism works. And typically when tariffs are rescinded, the prices don’t go back down to the before-tariff levels as consumers are “used” to paying higher prices.

Furthermore, a tariff is a tax and a tax’s affect is to slow down or stop a behavior. So increased tariffs on bikes and bike parts -> fewer bikes/bike parts being sold -> fewer jobs in bike/bike part sector -> overall economic slowdown.

This is a good macroeconomics 101 lesson for the American public.

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