What do the Tariffs with China mean to golf equipment

annsguy

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I have tried to get a sense of what items could or would get the 25% tariff on goods coming from China. This is not intended to be political. I’m just wondering what the extra cost will do to the retail price we end up paying for the things we need to play the game. I know athletic shoes, which golf shoes would fall under are subject to the tax. I assume clubs since they use steel.
 

Reframmellator

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This is where I have been living of late, because much of what I buy is being hit with these tariffs.

For now, golfers are safe: https://www.forbes.com/sites/kenrob...lastic-napkins-cell-phones-more/#280f68e87bfd

Even if they do get hit, the bill won't be as bad as you think. Tariffs are charged on the ad valorem value at the port of entry. The value of those clubs is material, plus labor and other overhead costs (like utilities and maintenance), plus freight. So a $800 set of irons at retail may cost $400 at the port of entry, so the extra tariff would be $100. Of course that $800 covers R&D, marketing, general and administrative costs, all of which are not insignificant, but not subject to tariff. I suspect the value of those irons at entry is a lot less than $400.
 
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JB

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Interesting back and forth with Bridgestone yesterday about this subject.
The main note of it is that outside of accessories they will not be impacted and that they will not be raising prices at all, rather eat any additional expenses.
 

Bucketsofjoy

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Interesting back and forth with Bridgestone yesterday about this subject.
The main note of it is that outside of accessories they will not be impacted and that they will not be raising prices at all, rather eat any additional expenses.
How much product do they really have thats being brought over from China? Balls are US, clubs are Japan, correct?
 

JB

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How much product do they really have thats being brought over from China? Balls are US, clubs are Japan, correct?
That is correct. Accessories are all that would be impacted.
 

Bucketsofjoy

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That is correct. Accessories are all that would be impacted.
In fairness, I think their hats and gloves are top notch.
 

erock9174

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Trump is an avid golfer. No way would he tariff clubs.

I work for a craft/fabric company and the tariffs are definitely impacting us. Shame too cause the original intent was to tariff the electronics being imported. Not yarn.
 

Badger_Golfer

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The short answer is that prices will go up because production costs will go up. Is simple economics: the heads that are made in China (which is pretty much all of them) will be subject to tariffs and they will pass the cost onto the consumers.
Its not going to cause China to revalue their currency, its not going to bring manufacturing back to the USA, its only going to drive up the prices; which is the inherent stupidity of starting a trade war with China.
 

Badger_Golfer

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Trump is an avid golfer. No way would he tariff clubs.

I work for a craft/fabric company and the tariffs are definitely impacting us. Shame too cause the original intent was to tariff the electronics being imported. Not yarn.
Do you think that someone who supposedly has 7 billion dollars in the bank cares about the added cost? Spoiler alert: he doesnt.
 

JB

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It was asked by the OP to not get political so let’s try and oblige.
 

Reframmellator

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The short answer is that prices will go up because production costs will go up. Is simple economics: the heads that are made in China (which is pretty much all of them) will be subject to tariffs and they will pass the cost onto the consumers.
Its not going to cause China to revalue their currency, its not going to bring manufacturing back to the USA, its only going to drive up the prices; which is the inherent stupidity of starting a trade war with China.
Read the link in Post #2. Golf clubs and components are not included - yet.

Its not going to cause China to revalue their currency
China has already revalued its currency as a response to the tariffs:

https://www.forbes.com/sites/charle...is-a-response-to-trumps-tariffs/#29226f79663b

prices will go up because production costs will go up
Production costs will increase if they use imported materials, because currency devaluation makes exports cheaper and imports more expensive. If the imports are from the US, retaliatory tariffs by China will increase costs, but if the raws are imported from elsewhere, costs will be reduced because China has reduced tariffs on imports from countries other than the US. In addition, Chinese companies are seeing increased costs because for the first time maybe ever, the Chinese government is enforcing environmental regulations that are equivalent to those on the books in the most advanced economies. And I can tell you that just as Bridgestone is taking a margin hit on their end by absorbing the costs of the tariffs, some Chinese manufacturers are absorbing at least some of those costs.

My personal opinion is that this is really about getting China to conform to the practices of the rest of the world with respect to theft of technology and intellectual property. Also my opinion that the biggest flaw in intiating a trade war is that it's like picking a fight with a stranger in a crowded bar: even though you MAY appear to be bigger and stronger than the other guy, you really have no idea how it's going to end.
 
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dthrog00

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c'mon guys... golf forums are one place we go to get AWAY from politics.

Dave
 

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