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pyoungbl · 06-08-2019, 02:46 PM

A 25% duty on motorcycles from China will have a big impact on CSC's entire business model, if it takes effect. Zongshen might shave their profit margin a bit and CSC might do the same but I doubt there is enough profit to keep from raising prices at least 15%, probably more like 20%. Don't forget that China supplies parts for lots of other industries, not just automotive. A big jump in tariffs will cause a ripple across many supply chains. Already many large companies are moving operations away from China in anticipation of this trade war. These operations are not moving to the USA but to places like Taiwan, Thailand, Vietnam, and South Korea. I'm hopeful that all this will be solved soon and we can go back to our normal concerns like who makes an aftermarket exhaust or where can I get a taller windscreen, you know, the critical stuff.

06-08-2019, 02:46 PM	#7
pyoungbl Join Date: Feb 2016 Location: Portsmouth, Virginia, USA Posts: 632	A 25% duty on motorcycles from China will have a big impact on CSC's entire business model, if it takes effect. Zongshen might shave their profit margin a bit and CSC might do the same but I doubt there is enough profit to keep from raising prices at least 15%, probably more like 20%. Don't forget that China supplies parts for lots of other industries, not just automotive. A big jump in tariffs will cause a ripple across many supply chains. Already many large companies are moving operations away from China in anticipation of this trade war. These operations are not moving to the USA but to places like Taiwan, Thailand, Vietnam, and South Korea. I'm hopeful that all this will be solved soon and we can go back to our normal concerns like who makes an aftermarket exhaust or where can I get a taller windscreen, you know, the critical stuff.
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