Why You Might Be Paying More For BicyclesPosted: Updated:
The trade battle between the U.S. and China continues and now proposed tariffs on Chinese imports could hit those in the bike industry even harder.
"It's not just the bikes and the parts, but also most of the accessories. There's a whole category of recreational items that apparently has everything except helmets," said Todd Phelps, Black River Adventurers owner.
In June, President Trump proposed 10 percent tariffs on roughly $200 billion worth of Chinese goods.
Now he wants to increase that amount to 25 percent.
Phelps says this is a concern for shops and consumers.
"Almost all of the bikes that are purchased in this country are manufactured in China. Expect the prices to go up," he said.
When it comes to electric bikes, those were already on a list of goods that would get 25 percent tariffs. Phelps says that could hurt the growing trend.
But, Phelps says the price increase may not be as drastic as it first looks, since a lot of a bike's value is added after it gets into the country.
"The price of the bike won't go up by 25 percent because it's not the entire retail price of the bike that's going to be tariffed. It's going to be the price of the bike as it comes into the country," he said.
Chinese officials said this week they are prepared to retaliate if the U.S. moves forward with the proposed tariffs.