05/28/2025
Beyond the direct impact of tariffs on currency, bond markets, the dollar, and trade deficits, the greater threat to the global economic system stems from unpredictable, resentment-driven macroeconomic policies. Should another nation rise to fill a void in global leadership, reclaiming that position will be incredibly difficult. History shows that poor decisions can rapidly diminish a superpower's standing, a decline that's virtually irreversible.
Regarding the cycling industry's attempts to present a positive spin on the impact of tariffs, my video reveals several strategies employed by manufacturers:
(1) Pausing Price Increases: Some companies initially planned to raise prices due to tariffs, but halted these increases when tariffs were paused, aiming to keep bikes affordable.
(2) Focusing on Customer Benefit: There is an emphasis on prioritizing riders by striving to maintain affordable prices and quality.
(3) Adopting a "Wait and See" Approach: Many representatives mentioned a "wait and see" strategy, deferring drastic measures and hoping for improved conditions.
(4) Exploring Alternative Markets: Companies are considering shifting their business focus to other regions, such as Europe, to mitigate tariff impacts.
(5) Highlighting Existing Advantages: Manufacturers with production in less-affected regions, such as the UK, emphasize this as a strength. Those with overseas facilities in Europe and Vietnam view this as a beneficial strategy against tariff issues.
(6) Expressing Confidence in Adaptability: A recurring theme is the industry's ability to react quickly and make necessary adjustments.
(7) Focusing on Long-Term Solutions: One manufacturer noted the potential to shift production or assembly to the United States or other friendly countries, viewing tariffs as a potential catalyst for strengthening domestic production.
In summary, the cycling industry is attempting to manage the narrative around tariffs by emphasizing its efforts to protect consumers, adapt to changing circumstances, and explore strategic alternatives for production and markets. None of these points towards growth in American manufacturing, but rather...just the opposite.
The Sea Otter Classic in Monterey, California, is one of the largest and longest-running bike festivals in the US, and the 2025 event, held from April 10-13,...
