This week, President Trump approved tariffs on $1 billion of bicycle goods coming from China. This includes bikes and components but excludes helmets and lights. The tariffs will start at 10% starting on products shipped after September 24, 2018. On January 1, 2019, the amount will rise to 25%.
“Pretty much every part of a bicycle, from saddles and spokes to tubes and frames, features on this latest tariffs list, even after the industry went into overdrive to get relief. About 10 percent of the 6,100 comments the U.S…China accounted for nearly all of the 15.4 million bikes the U.S. imported last year, according to Giant Manufacturing Co. It told the USTR that a 25 percent tariff would cost more than $250 million.” – Bloomberg
This announcement sent shockwaves through the bike industry as prices are sure to rise. Bicycles can be expensive. With manufacturers and retailers looking to retain their profit margins, we can expect the end-users to pick up the cost. As China retaliates with tariffs on US-produced goods, it appears there is no end in sight to this dreaded trade war.
This calamity begs the question: could the ski industry soon be effected by trade tariffs?
While some skis are made in the good ol’ US of A, plenty are not. Manufacturers are understandably hush about where their skis are produced, it is well known that K2 and Line have a factory in China. It is a safe bet that more companies build skis in China as well.
The winners and losers from Trump’s tariffs https://t.co/nRCMneOejZ
— Bloomberg (@business) September 18, 2018
Even if you proudly ski a brand that is manufactured in the US, its also a safe bet that the edge material, bases, and laminates come from China. How about the components on your bindings? The screws and hardware on your boots? China.
The average cost of a pair of ski is somewhere near $700 with some premium brands selling for well over $1,000. Bindings average somewhere in the range of $400 and boots run about $600. A 10% increase on the sticker price on our prized ski goods could sting, while a 25% price hike could be do some serious damage to the bank account.
What do you think? Will the ski industry be effected by the trade war with China?
Find the entire Bloomberg article here: The Winners and Losers From Trump’s Tariffs