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Local Bike Shops Feel the Crunch from New Tariffs

4:53 PM | Friday, October 5, 2018

Minnesota consistently ranks at the top as one of the most bicycle-friendly states. Now, some of those people could be spinning their wheels and paying more if they need bike parts or a whole new bike.

Tariffs Target Bicycles Made In China

Last month, President Trump approved tariffs on roughly $200 billion dollars of imports from China, including $1 billion on bike products. Tariffs went into effect Sept. 24 at 10 percent until the end of the year. On Jan. 1, 2019, it jumps to 25 percent. So if you’re in the market to buy a bike, now is the time to make a purchase.

Trailhead Cycling in Champlin showed us an example. Pointing to a high end bike co-owner Larry Saylor said “this is normally, like, $2,450, but it’s a 2018 that we have on sale for $1,999. Next year, this bike will be over $3,000. So, you can actually get it at a savings at this time.”

Local Companies Changing How They Do Business

Trailhead Cycling loaded up on inventory before the price increase kicked in.

“A combination of last year’s models and 2019 that we were able to buy before the tariffs took effect,” explained Saylor.

It’s not just whole bikes that are targeted by the tariffs, but bike parts, too.

“Some small repair parts are going to go up, again, the ones we do a lot of volume in we kind of stocked up ahead of time,” said Saylor.

While Trailhead Cycling isn’t being impacted at this time, they are feeling a little pain from one of their vendors.

“There approach is to take that 10 percent increase, they’re going to eat five percent of it and we’re going to eat five percent of it,” explained Saylor.

Meanwhile, the owners of Trailhead are hoping a deal can be worked out before prices climb too high.

“We’re more of the glass is half full, than half empty shop. We’re choosing to be optimistic that the administration is going to negotiate these tariffs, way before next summer,” said Saylor.

According to the group, People for Bikes, 94 percent of bicycles sold in the United States are imported from China.

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