Any thoughts on the 145% Chinese tariff on purchases?

[Tijoe]

Correct. No VAT. Just what the item cost plus sales tax. Many of us US customers didn't know how good we had it. I'll admit it was unfair. Just hoping the tariff settles at a reasonable number.

Unfair?  What does that mean?   Aliexpress is in effect just a direct to consumer business model.  Few to no middlemen, who increase the price you pay for literally no value add.  If you go back in history, the $800 De Minimis was originally at $250, then later increased to $800, based on the actual cost for US customs to process smaller packages - Labor, processing time, item throughput, and bandwidth based on funding allocated by congress.  Remember that US customs is not a profit oriented organization/agency.  They are just a giant screening filter there to enforce the trade policies and import restrictions established by the US government.    A huge "profit center" was developed around US customs where a lot of money is made by "middlemen"  - Bonding, brokers, warehouses, sorting, shipping.    As "just-in-time" delivery became prevalent for the majority of big and small US businesses via air cargo carriers, this opened up a window where consumers could benefit and cut out the middlemen.    So how is this unfair?

The way I look at it is that we, the consumer, found a way to avoid extra markups/profit for corporations and businesses. These companies lobbied to remove this path consumers started using more and more over the past 10 years, so that they can make more profit from us.

[courdacier]

"unfair" is typically coded to "unfair competition" in our media, whereas what is happening with China was hyper-competition.
is it unfair because of CCPs mercantilist policies? I don't know that I would go that far as a consumer.

[Ludo]

It’s unfair because middle man or John Doe bike shop owner had to pay the import tax that the deminimis allowed us direct buyer to get around of, that’s it. But in that respect, no doubt it was unfair.

[Chiyou]

We still paid state sales tax on imported items.

This is a minor point but I wonder how they will apply state taxes going forward: on the original AliExpress price or on the 'landed' price that has the various import fees/tarrifs/surcharges included in it.

[Tijoe]

It’s unfair because middle man or John Doe bike shop owner had to pay the import tax that the deminimis allowed us direct buyer to get around of, that’s it. But in that respect, no doubt it was unfair.

You forgot that the bicycle industry had tariff exemptions on the majority of bicycles and components entering the USA.  (Since 2018)  E-bike tariff exemptions expired in either 2023 or early 2024, and I believe in late 2024, exemptions for children's bicycle expired.

Edit:  It costs bike shops more money for their products because the majority of them purchase their bicycles/parts from dealers and distributors.  These "Middlemen" are making the most money in the cycling industry, not the shops.  I know several shop owners who were purchasing a significant portion of their inventory directly from China, just like we do through Aliexpress.  They were benefiting from the $800 De Minimis, jsut like we did. 

[Tijoe]

Since the Bicycle industry in the US is perhaps 3.5% of our economy, (Total sporting goods industry is less than 9%)   our current administration could care less about bicycles and component.   I read somewhere that cycling consumers were purchasing at most 5% of the total bicycles/parts imported into the US.   Our administrations originally went after the De Minimis because of the impact to textiles, consumer goods, and electronics and a few other commodities.   

For those of us on this forum, we are a very unique consumer that doesn't have any overall impact on the cycling industry.  If we can't support our addiction through Aliexpress, we will figure out another way to purchase what we want/need at a good price.

[Tijoe]

"unfair" is typically coded to "unfair competition" in our media, whereas what is happening with China was hyper-competition.
is it unfair because of CCPs mercantilist policies? I don't know that I would go that far as a consumer.

I agree that what the US is dealing with is hyper-competition, not unfair.    (Thanks for this input.)   I am now distracted in reading about hyper-competition.
First thing that stands out is China has a much more globally competitive manufacturing business model than we do. Their government invested huge amounts of money into their manufacturing system/equipment/automation/efficiency that is far surpassing our capitalistic dog-eat-dog approach. That these days, restricts innovations and funding of new modern factories only to the huge corporations and the rich.  The average businessman can no longer afford to start up a larger scale manufacturing business in the US without selling his sole to the investment firms.

[jonathanf2]

On a weekly basis, I do a group ride that consist of anywhere fro 50-100 cyclists (I do it mainly for the socializing). I'm literally the only cyclist with full AliEx components. At most I've met one guy with a RYET saddle or a MTB'er with a knock-off 5Dev crankset. Occasionally I'll meet a roadie with some Elite or Farsport wheels. The majority of the cyclists buy their goods from bike shops or used on Craigslist or FB marketplace. Many of the "average" US cyclists seem to prefer name brand bikes or boutique custom builds. We're totally a small niche of cycling enthusiasts from this forum. I can count on one hand how many Chinese built framesets I've seen in-person from the thousands of bikes I've seen. I seriously doubt we even put a dent into the small local bike shops.