Bay Area bike shop tries to adjust amid Trump tariffs on Chinese goods
As the Trump administration's 10% tax on Chinese goods goes into effect, a bike shop owner in the East Bay is trying to adjust to the price increases.
AJ Wright has been working on bikes ever since he was a kid and within the past few years was able to move from a space in his garage to this shop in Livermore, where he sells mostly mountain bikes for adults and kids.
"When tariffs start to roll out, this is one of the biggest industries that's affected," he told CBS News Bay Area.
Wright said the majority of the mass-produced bicycles and components are made in China. Based on the new tariffs, the manufacturers have already increased their prices.
"You get a $500 kid's bike, now it's $550. If they put on another 10% tariff that's going to push that bike now to $600," he explained.
President Trump recently announced a 10% tariff or tax on all goods imported from China, which impacts almost every industry in the U.S., according to experts. In response, China has announced their own tariffs on U.S. goods.
"We import a lot of base ingredients from China that's used in a lot of various industries. So you're talking pharmaceutical. You're talking the toy industry. You're talking electronics. So almost every industry in the United States would be impacted," said Patrick Penfield, a professor of supply chain practice at Syracuse University.
Because of that, Wright decided to carry a new brand of bike that's all made in Spain - a country he thinks is unlikely to face new tariffs anytime soon.
"I picked up Mondraker. You don't have the tariff affect so you're going to get a better product for better money," he said
Wright says in general the higher-end bikes and parts are made in the United States and Japan, so they aren't impacted by the new tariffs as much as entry-level, mass-produced bikes which are more likely to come from China. But, it's those entry level bikes that are most attractive for people wanting to ride to work and also for children.
"I am significantly worried about what's going to happen moving forward, especially with kids. Getting kids on bikes is exciting because it gets them out of the house, it gets them to do something with their parents and everybody is connected," he said.
The 10% tariff on all goods imported from China did go into effect Tuesday, but there is still a chance it could be suspended. Mr. Trump is expected to meet with the President of China in the coming days to try to avoid a trade war.
