KNOXVILLE — Chances are, when you get on your bike to go for a ride, you probably are not thinking about tariffs.
But the next bike you buy, could be a lot more expensive.
Tariffs on nearly $200 billion worth of Chinese products will go into effect next Monday.
Bicycles are one of the goods that will be impacted the most. The vast majority of the bicycles imported into the US come from China, according to the Bicycle Product Suppliers Association.
Here in Knoxville, local bike shops are preparing for a trade war, but don’t yet know how bad it could get.
"This newest round is going to affect everything. It’s going to affect not only the bike shops but the bikes from Walmart, really every level," said Steve Bacon, owner of Bike Zoo in West Knoxville. "I’ve been doing this for well over 25 years. This is the first time that we’ve really seen anything like this."
Bike Zoo sells high-end bikes for thousands of dollars a piece. Many of them come from China.
"30 years ago, we saw very low quality stuff coming out of China. You knew that if it was Chinese made, it was kind of bad. But that’s not the case anymore," Bacon said.
Starting Monday, the United States will impose a 10 percent tariff on pretty much every part of a bicycle imported from China. The tariff will increase to 25 percent by 2019. From the spokes to the frames to the tires, the price could soon go up. Eventually, the price increase will be passed down to the consumer.
In 2017, the US imported 15.4 million bicycles, according to the Bicycle Product Suppliers Association. Of those, more than 14 million came from China. In a letter submitted to the Office of the US trade representative, the bicycle industry says the tariffs could cost them more than $250 million.
"For brick and mortar, it’s getting tougher and tougher every year," said Bacon. "Without a doubt, tariffs are not helping."
