Tariff Impact on Bike Prices this Fall
11-15-19, 07:30 PM
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Tariff Impact on Bike Prices this Fall
Has anyone else had sticker shock from seeing the impact of the Tariffs on new bike prices? Bikes in the $400 - $500 range up $100- $125 in some cases. Bikes in the $1,000 - $1500 range up maybe $150 - $200. Some bikes up jusy a little in price but have many cheaper components now to hold the price down (Lots of Tiagra and Apex where you used to see 105 and Rival). $2,000 - $3,000 bikes up several hunderd dollars. Specialized seems to be the most impacted and Giant seems to be the least impacted from what I have noticed. Also, I bought a set of Hunt wheels from the UK with free shipping then was hit with a new import tariff bill I had to pay upon receipt for $125, which wiped out the great deal I thought I had on a $400 wheelset.
I do not see any manufacturers yet rushing to set up manufacturing here in the US...
I do not see any manufacturers yet rushing to set up manufacturing here in the US...
11-15-19, 08:47 PM
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Here is an NPR piece that lays out some of the info on the bicycle market.
And here is a piece from NBER (which is non-partisan and non-profit) which briefly explains that US consumers have actually paid most of the tariffs (on all products) in the form of higher prices. Another excellent study from some top academic economists estimates that 95% of the tariffs have been passed on to US consumers in the form of higher prices.
Note that this is all contrary to the claims of the self-professed "tariff man" that China is actually paying the tariffs. In reality, tariffs imposed on imports to the US are a tax on US consumers; that result has been well-understood by economists for a looong time, and was widely predicted to be the end result of the current tariff war.
To the extent that the resulting higher prices reduce sales (which is pretty typical result of higher prices), then the tariffs also hurt retailers.
And here is a piece from NBER (which is non-partisan and non-profit) which briefly explains that US consumers have actually paid most of the tariffs (on all products) in the form of higher prices. Another excellent study from some top academic economists estimates that 95% of the tariffs have been passed on to US consumers in the form of higher prices.
Note that this is all contrary to the claims of the self-professed "tariff man" that China is actually paying the tariffs. In reality, tariffs imposed on imports to the US are a tax on US consumers; that result has been well-understood by economists for a looong time, and was widely predicted to be the end result of the current tariff war.
To the extent that the resulting higher prices reduce sales (which is pretty typical result of higher prices), then the tariffs also hurt retailers.
Last edited by Koyote; 11-15-19 at 08:51 PM.
11-15-19, 09:13 PM
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I find this strange, my $387 wheels came from Germany and I had no tariffs or extra fees. Maybe it has to do with the carrier, USPS was the end carrier that delivered mine. I got them 2 weeks ago
11-15-19, 09:33 PM
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I had to pay a $56.60 import duty/tax on a bike frame I bought from England a few months ago that cost $1200.
Why would a $400 wheelset have a $125 import tax?
I almost bought a $425 Hope wheelset from Merlin and was told there wouldnt be an import tax due to the price.
Odd.
11-16-19, 06:49 AM
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https://hts.usitc.gov/view/finalCopy...=2019HTSARev16
Section 17, Chapter 8712 deals with bikes and components.
Sometimes items slip through, other times they are flagged by US Customs enforcement. So, if you get lucky, your wheels may not be taxed.
Section 17, Chapter 8712 deals with bikes and components.
Sometimes items slip through, other times they are flagged by US Customs enforcement. So, if you get lucky, your wheels may not be taxed.
Last edited by Koyote; 11-16-19 at 07:00 AM.
11-16-19, 11:23 AM
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You shouldn't have to pay any extra tax unless the stuff you bought is over $800. Hunt must have filled out the shipping manifest incorrectly. I would contact them. It sounds like they shipped multiple wheels in a single box making it more than $800 but you got hit with the tax for the whole thing.
11-16-19, 11:34 AM
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https://hts.usitc.gov/view/finalCopy...=2019HTSARev16
Section 17, Chapter 8712 deals with bikes and components.
Sometimes items slip through, other times they are flagged by US Customs enforcement. So, if you get lucky, your wheels may not be taxed.
Section 17, Chapter 8712 deals with bikes and components.
Sometimes items slip through, other times they are flagged by US Customs enforcement. So, if you get lucky, your wheels may not be taxed.
11-16-19, 04:39 PM
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Bikes: Co-Motion Cappuccino Tandem,'88 Bob Jackson Touring, Co-Motion Cascadia Touring, Open U.P., Ritchie Titanium Breakaway, Frances Cycles SmallHaul cargo bike. Those are the permanent ones; others wander in and out of the stable occasionally as well.
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You shouldn't have to pay any extra tax unless the stuff you bought is over $800. Hunt must have filled out the shipping manifest incorrectly. I would contact them. It sounds like they shipped multiple wheels in a single box making it more than $800 but you got hit with the tax for the whole thing.
11-16-19, 04:43 PM
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You shouldn't have to pay any extra tax unless the stuff you bought is over $800. Hunt must have filled out the shipping manifest incorrectly. I would contact them. It sounds like they shipped multiple wheels in a single box making it more than $800 but you got hit with the tax for the whole thing.
Last edited by dwmckee; 11-16-19 at 08:21 PM.
11-16-19, 05:13 PM
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Bikes: Co-Motion Cappuccino Tandem,'88 Bob Jackson Touring, Co-Motion Cascadia Touring, Open U.P., Ritchie Titanium Breakaway, Frances Cycles SmallHaul cargo bike. Those are the permanent ones; others wander in and out of the stable occasionally as well.
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Hmmmm... So without any tariffs, a $3300 Carbon Renegade would cost me $2,000 or so... Sweet... And if they started to manufacture it in the US any idea what it would cost?
11-16-19, 06:44 PM
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The only one I was able to contact was the carrier, UPS. I raised holy terror with them, but they basically said it is up to US customs and they do not always apply then the same and there is no one to appeal to... It really sucked having to pay that much extra unexpectedly...
Many people, for years, had issues ordering Campagnolo from the UK--always wanting Royal Mail (forwarded to USPS) shipping; NOT FedEx/DHL/UPS. Simply because they were known for wrongly applying tariff code on groupsets. For example a brake caliper set would need say a 10% tariff on it; instead of applying say 10% to the value of the brakes as itemized on the ladening--they would apply the tariff to 10% of the value of the entire shipment contents. And THEN they would charge you a "convenience" fee surcharge based on a multiple of the tariff they wrongly applied as well. What should be say a $10 tariff thereby ends up being a $150 tariff with fees.
The best thing you can do to avoid the headache and mystery/suspense/charges....is not order internationally.
