New tariffs on Chinese imports increases Rad Power Bikes prices in Seattle
BALLARD, Wash. -- Starting Thursday, August 23 the Trump Administration's 25 percent tariffs on imports from China could impact $16 billion worth of goods, including one popular e-bike company.
Rad Power Bikes has sold tens of thousands of bikes over the past three years, but since their bikes are manufactured in China, the new tariffs could start affecting business.
Kat Moon just got an e-bike from Rad Power Bikes in Ballard.
“I was interested to get up into the hills, Capitol Hill from South Lake Union,” Moon said. “And a traditional bike didn't work that long, considering the trek I would have to do.”
And these bikes are not cheap.
“So, this (bike) is about $1,500 dollars,” Moon added.
But, what got her off the fence after three weeks of thinking about buying the bike was the 25 percent tariffs on products coming from China.
“They are going to see a price increase because of that,” said Ty Collins, co-owner of Rad Power Bikes.
Although Rad Power Bikes are all designed in Seattle, they are manufactured in China.
“We decided as a company that we were going to absorb as much of that as we possibly could,” Collins said.
But, people who buy Rad Power Bikes will have to pay an extra $200 starting Thursday.
“Essentially, that’s causing us to increase the price of all our bikes of all models by $200,” he added. “It’s definitely converted quite a few additional buyers to get in before the price goes up.”
Collins says his three-year-old company has grown exponentially in the past year
“We're hoping for it to be in the 350 to 400 percent growth range,” he added.
Rad Power Bikes hopes to keep it up, but those tariffs on what the U.S. imports from China may hurt business down the line.