A bike shop owner in the East Bay is attempting to adapt to the price rises as the Trump administration’s 10% duty on Chinese goods takes effect.
Since he was a little child, AJ Wright has been working on bikes. In the last few years, he was able to move from a garage to this store in Livermore, where he primarily sells mountain bikes for adults and children.
He told CBS News Bay Area, “This is one of the biggest industries that’s affected when tariffs start to roll out.”
According to Wright, China produces the vast bulk of the mass-produced bicycles and their parts. The manufacturers have already raised their pricing in response to the higher levies.
“A $500 kid’s bike is now worth $550. “That bike will now cost $600 if they impose an additional 10% tariff,” he clarified.
Experts say that President Trump’s recent announcement of a 10% tax or tariff on all Chinese imports affects practically every American industry. China has responded by declaring its own taxes on American goods.
“China is a major source of base ingredients that we import for usage in many different sectors. You’re discussing pharmaceuticals, then. The toy industry is what you’re discussing. You’re discussing electronics. As a result, practically every American company would be affected, according to Patrick Penfield, a Syracuse University supply chain practice professor.
As a result, Wright chose to stock a new brand of bike that is entirely manufactured in Spain, a nation he believes is unlikely to experience new tariffs in the near future.
“Mondraker was picked up by me. Since tariffs don’t effect you, you’ll get a better product for less money,” he stated.
According to Wright, entry-level, mass-produced motorcycles, which are more likely to originate from China, are less affected by the new tariffs than higher-end bikes and parts, which are often created in the US and Japan. However, those entry-level bikes are the most appealing to kids and adults who wish to ride to work.
“I am quite concerned about the future, particularly with regard to children. It’s great to get kids riding bikes because it allows them to interact with their parents, get them outside, and keep them linked,” he said.
Although the 10% duty on all Chinese imports did take effect on Tuesday, it is still possible that it will be postponed. In an attempt to avert a trade war, Mr. Trump is scheduled to meet with the Chinese president in the coming days.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.