Tariffs and the RX3

NoVa Rider · 06-07-2019, 01:45 PM

I have not noticed any comments on the impact that proposed US tariffs could have on Chinese-made bikes imported into the US. But if, for example, the RX3 was hit with a 25% tariff, a big part of their sales appeal would of course be eroded. Could CSC still be competitive selling them and their other Zongshen sourced bikes? I have been checking CSC's blog for comments on this but so far, nothing.

I may be missing some discussion but the first article I have seen on the specific issue of motorcycle tariffs is in the current Motorcyclist Online website. It's not very helpful in understanding the issue, but it does have a link to the USTR document listing items that are proposed for "up to 25% additional tariff. Motorcycles are on the list, harmonized number 8711.20.00.

I don't mean to get into politics on any level. And I have no idea if in fact these tariffs will be initiated. Just something to watch.

Azhule · 06-07-2019, 02:04 PM

I can see the Zongshen supplier from China to start putting "low ball numbers" on the orders like all things ordered from that area... ever order a hundred dollars worth of crap from China only for it to show up with things like "Gift", "Sample", "Hardware, $1"

That... and I'm sure CSC has a decent mark up on their imported bikes ("customer support" and all cost a lot of $$

)... they could probably keep the bikes at the same price for the customer and "eat a little less profit"... I could do with a few less "I went on an over seas vacation and rode a RX3" blogs every year

calvarez · 06-07-2019, 07:45 PM

Small shippers of small items can fake it. No way is Zongshen going to fake their costs and bills of lading. The crazy orange one doesn't really care if we ride or not.

Azhule · 06-07-2019, 09:28 PM

Not saying they would go as extreme as I gave in the "Alibaba" examples, just saying that if CSC wanted to keep customers, they could easily make it happen without raising the cost to them

calvarez · 06-08-2019, 03:01 AM

No, they can't "easily" make that happen. That's the BS everyone is throwing around in counter to El Cheeto Loco's insane economic plans. No, price increases don't happen in a vacuum, stop excusing that idiot's changes. It means we all pay more.

Its_not_a_honda · 06-08-2019, 06:11 AM

The long term effect will benefit all Americans. More stuff will be done in the USA. Short term, china will subsidize the export market to make it appear nothing has changed. They cant do it for long. They will try to hold out for 2 years in hope's that a democrat will go in and start losing the trade imbalance again. We are at this moment living with the lowest unemployment that has ever existed. Our previous prez said we should get use to 1% GDP. We now have 3.5% GDP. We now have respect from the world and a leader that doesn't go around apologizing for it. If you watch the "fake news", it's doom and gloom. If you own a business, its booming!

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.

06-07-2019, 01:45 PM	#1
NoVa Rider Join Date: Jan 2015 Location: Northern Virginia Posts: 144	Tariffs and the RX3 I have not noticed any comments on the impact that proposed US tariffs could have on Chinese-made bikes imported into the US. But if, for example, the RX3 was hit with a 25% tariff, a big part of their sales appeal would of course be eroded. Could CSC still be competitive selling them and their other Zongshen sourced bikes? I have been checking CSC's blog for comments on this but so far, nothing. I may be missing some discussion but the first article I have seen on the specific issue of motorcycle tariffs is in the current Motorcyclist Online website. It's not very helpful in understanding the issue, but it does have a link to the USTR document listing items that are proposed for "up to 25% additional tariff. Motorcycles are on the list, harmonized number 8711.20.00. I don't mean to get into politics on any level. And I have no idea if in fact these tariffs will be initiated. Just something to watch.
	0

06-07-2019, 02:04 PM	#2
Azhule Join Date: Dec 2015 Location: CO Posts: 1,525	I can see the Zongshen supplier from China to start putting "low ball numbers" on the orders like all things ordered from that area... ever order a hundred dollars worth of crap from China only for it to show up with things like "Gift", "Sample", "Hardware, $1" That... and I'm sure CSC has a decent mark up on their imported bikes ("customer support" and all cost a lot of $$ )... they could probably keep the bikes at the same price for the customer and "eat a little less profit"... I could do with a few less "I went on an over seas vacation and rode a RX3" blogs every year __________________ "Think as you like... but this self proclaimed Professor is always right" - Buckshot "You never know what someone is hiding beneath their smile..." - NinjaTom - R.I.P.
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06-07-2019, 09:28 PM	#4
Azhule Join Date: Dec 2015 Location: CO Posts: 1,525	Not saying they would go as extreme as I gave in the "Alibaba" examples, just saying that if CSC wanted to keep customers, they could easily make it happen without raising the cost to them __________________ "Think as you like... but this self proclaimed Professor is always right" - Buckshot "You never know what someone is hiding beneath their smile..." - NinjaTom - R.I.P.
	1

06-08-2019, 06:11 AM	#6
Its_not_a_honda Join Date: Jan 2018 Posts: 410	The long term effect will benefit all Americans. More stuff will be done in the USA. Short term, china will subsidize the export market to make it appear nothing has changed. They cant do it for long. They will try to hold out for 2 years in hope's that a democrat will go in and start losing the trade imbalance again. We are at this moment living with the lowest unemployment that has ever existed. Our previous prez said we should get use to 1% GDP. We now have 3.5% GDP. We now have respect from the world and a leader that doesn't go around apologizing for it. If you watch the "fake news", it's doom and gloom. If you own a business, its booming! __________________ 2020 Kawasaki KLX300R, 2018 Yamaha TW200 If you want more of something, tax it less. If you want less of something, tax it more.
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06-07-2019, 07:45 PM	#3
calvarez Join Date: Sep 2018 Location: Peoria, AZ Posts: 334	Small shippers of small items can fake it. No way is Zongshen going to fake their costs and bills of lading. The crazy orange one doesn't really care if we ride or not.
	0

06-08-2019, 03:01 AM	#5
calvarez Join Date: Sep 2018 Location: Peoria, AZ Posts: 334	No, they can't "easily" make that happen. That's the BS everyone is throwing around in counter to El Cheeto Loco's insane economic plans. No, price increases don't happen in a vacuum, stop excusing that idiot's changes. It means we all pay more.
	0

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.
	2