NEWPORT, Ky. — Tariffs on imported steel and aluminum have now increased to 50%, which is good news for American steelmakers, but challenging for businesses that rely on imported metals.
Among them, bicycle shops are some of the first small businesses feeling the impact of these new tariffs.
At Reser Bicycle Outfitters in Newport, bikes contain numerous components made from the very materials targeted by the tariffs.
"I just got an email where there was a 10% raise on one of our brands that just supply components," said Michael Haas, manager at Reser Bicycles.
From aluminum frames to steel pedals, most bicycles sold in the U.S. contain metals that are now subject to the increased tariffs.
"The majority of the bikes we sell are gonna be made out of aluminum. But anything we get in frame-wise is going to come from abroad," Haas said.
The challenge for retailers like Reser is that most bicycles are manufactured overseas. Their biggest brand, Specialized, is headquartered in California but builds its products in Taiwan and other countries.
Watch a bike shop owner talk about the challenges tariffs now present to his shop and customers:
Some ways to avoid the tariffs
Bike shops began noticing price increases about a month ago, but Haas says bicycles currently in stock were received months ago, before the tariff increases took effect.
Haas said he thinks it's still a good move for customers to buy the bikes already in stock, rather than waiting.
As new shipments arrive, Haas is seeing price increases ranging from 10 to 30%, with imported e-bikes experiencing the most significant hikes.
"It's definitely not fun for the customer when they see prices raised. So we are doing as much as we can," Haas said.
While the shop is trying to absorb some of these increases, he says consumers should expect to pay more starting this summer.
Bicycles made in the U.S. with American-made steel won't be subject to these tariffs, but such a manufacturing shift could take considerable time. Very few bikes are currently made in the US.
So you may want to buy sooner rather than later, so you don't waste your money.
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