Announced on Tuesday by the Trump Administration, proposals were put forward for a fresh round of trade tariffs, many of which will adversely affect the global bicycle business.
(Check out our special Shift Up Podcast on the topic)
Believed to equate to $200 billion in Chinese trade, the additional 10% tariffs announced closely follow a further two rounds where 25% tariffs were proposed on two segments of trade totalling £34 billion and $16 billion.
According to BR&IN, Tuesday’s tariff list will miss very few in the bike industry shipping goods into the US. Products on the list include, but are not limited to cable casing for derailleurs and caliper brakes, bike tyres, rim strips, inner tubes, complete bicycles, frames, steel tubing, forks, rims, spokes, alloy hubs, three-speed hubs, two-speed hubs, freewheel sprockets, brakes and brake parts, saddles, pedals, cranksets and speedometers.
The full document listing affected goods is found here.
Comments are now being taken by the U.S. Trade Representative, a process that will last only until August 17th. A public hearing then follows on August 20th to 23rd.
Published by the U.S. Trade Representative’s Office, the announcement loads the cannon for a trade war, declaring: “In light of China’s decision to respond to the investigation by imposing duties on U.S. goods, the Trade Representative proposes a modification of the action taken in this investigation. The proposed modification is to maintain the original $34 billion action and the proposed $16 billion action, and to take further action in the form of an additional 10 percent ad valorem duty on products of China with an annual trade value of approximately $200 billion.”
To read more on the escalating problem for the cycling industry, read up on the prior announcement here.
Currently exclusive to CI.N readers, we have a White Paper on the topic of Foreign Trade Zone use for our readers in the United States. Read about that here.