It took some time, but most Americans have finally become aware that the new definitions imposed on imported goods are actually paid by American companies, not the countries where they are manufactured. Nevertheless, what many still do not realize is how the same definitions are crushed in reality, the apparently designed American manufacturing.
It may seem intuitive. Even if it is misleading, the Trump administration tariff aims to encourage manufacturing in the United States rather than sending these manufacturing functions abroad.
The problem is that definitions often have the completely opposite effect. Take the emerging electrical manufacturing industry and light electronic industry in the United States, for example. Such electrical bicycles 30-40 miles per hour (48-64 km/h) provide legal ride in the streets that are at much more affordable than the largest motorcycles. It is easier to produce these light electric motor motorcycles and mobs of leading street bicycles, but still requires specialized skills and great investment in manufacturing capabilities.
Companies such as Spark Cycleworks in Singinati, Ohio, spent years in making these investments, helped the company to produce nearly 600 electric motors in its US -based small factory. However, despite the construction of its vehicles in the United States with the US Labor Party, the company still feels the overwhelming weight of definitions that threaten its future.
The problem is that despite the manufacturing that occurs in the United States, there is no local supply chain for many materials used in bicycles.
Components such as batteries, control units, engines and other critical parts are produced in Asia – many of which are in China. Matt Cycleworks Matt Schell explained that there is no simply alternative and that such components are a large part of the cost of production.
“These components make about 50 % of the cost of producing this bike and there is no other option,” Shill said. “I don’t have another place to go. I must explain the definitions of those parts.”
One of his latest containers with a 45 % higher tariff was exposed after the initial wave of the Trump tariff, and the next container with its batteries will now see a 145 % tariff.
Although some may suggest that American manufacturers must switch to the production of components such as locally battery packages, these components are made of imported sub -.
“There are no local options for our engines, our controlled units, and our batteries. We can make the batteries by hand in the United States, but all of these cells will be imported. So it does not matter if we make batteries here, they will still get this tariff,” Shill added.
SPARK CYCLORKS electrical bicycles were prior to about $ 4,500, but Schell says that new definitions will force the price to about $ 7,000. With uncertainty in this pricing scares consumers, the company did not sell one bike in about five weeks.
Via: wfsb
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