GCN Tech Show - The tariff tantrum, and the effects on the bike industry and riders

Just ran across this, Lauf is adding on a tariff specific surcharge

I’m just amazed at the gullibility of people. Whilst on a cruise I overheard a couple lamenting the attacks on Harvard but then saying that Harvard ā€˜stole over 2 billion from the Covid program, so they get what they deserve’. Yikes… They didn’t, and no university ā€˜deserves’ to be gutted/disected/disassembled because they are doing the same things as other universities.

History flashback: I had a prof at a college I attended, and he liked to ā€˜poke’ people. To jar their preconceived notions (more than others), to shake their world. Many students hated him, and when I was in his class, he zeroed in on one of my closely held beliefs, and it was disconcerting, but in the end, I realized what he was saying, and why. I realized that I was the fool and needed a bang on the head to knock loose my stubornly clung to illogic. I can see why some really did not like him. He didn’t do it quite nastily, but I think I saw a small smile trying to curl on the corners of his mouth. One student that I witnessed got up and stormed out, never to return. Some students tried to get him fired, but it didn’t work. I thought he was a little brutal at times, but grew to actually like him, and was sad to hear, years later, he left for a posh east coast school. I imagined him having his own Dead Poet’s Society…

China pays the tariff? Nope… WE pay the tariffs! Tariffs have always been a bad idea.

3 Likes

I can definitely see that for a TT bike.

I will say I have my old gravel bike with sram rival 1x mechanical and when I used that as my main bike I’d have to have the shift cable replaced once a year. Obviously not a big deal but I’ve had my current electronic shifting for a few years and havent needed to touch anything.

1 Like

Looks like (online at least) Specialized took off the note about a tariff surcharge and just raised prices. :thinking:

1 Like

Well that didn’t last long. :unamused_face:

The reason that bikes are expensive is simply because they can be, or at least, that’s what manufacturers found over the past few COVID years. Realistically, 99% of people buying a $5k and above bike (forget $15k) are buying it because they want to, not because they need to. The people who ā€œneedā€ an S-Works are getting them for free. An S-Works, Colnago, etc, are the biking equivalent of an Hermes bag or Porsche GT car (without as much artificial scarcity).

Post covid, there are significantly fewer people that want to spend $15k on a bike, and those entertainment dollars are going elsewhere.

1 Like

But it’s literally capitalism. Make a product and find a market for it that helps you make as much profit as you can. Seriously. (Oh, and shower riches on your investors, or yourself. Get a mistress, another ex-wife, a huge yacht, a ā€˜space flight’ for your pneumatic ex-mistress/fiance. Buy a sports team, a town, a politician, a think tank, a foreign country, an election)

3 Likes

And so it begins Wahoo Raises US Prices on All Products

Wow! I was looking at Wired’s ā€œThe Best Bike Helmets for Protecting Your Nogginā€, and when clicking on their links for vendors of the helmets, so many are way more expensive than in the links on the article. Some up over 50 bucks! Tariffs? I’m thinking yes, or tariff related greed…

The article was written on May 25 which is after tarrifs were announced.

My guess is that internet pricing on things can change dramatically day to day, especially on Amazon. The other day I was looking at a printer on Amazon and it was $259 and then a couple of days later it was $349.

Helmets also cost hardly anything to produce thus the import cost should be very small. Like $25 to manufacture a top tier $300 helmet is a $6 tariff at 25%.

But the tariff isn’t on the cost to produce, it’s on the cost to consumer. Think ā€˜tax’. An ā€˜idiot tax’.

1 Like

No it’s not. If Specialized makes a helmet in Asia for $25 and imports it themselves, the tariff is on the $25.

If an importer has toasters made in China for $20, the tariffs is on the $20, not the $59.99 retail price.

A tariff is a tax on importation and has nothing to do with retail prices to the consumer other than the importer is going to factor in the tariff when they price their product.

Of course, it’s a bit more complicated with a bicycle where the parts can be made in a number of countries and then assembled in even another country before being shipped to the US. I still think the final value and final country of shipment is what triggers the tariff.

2 Likes