Even if you have not been following the latest tariff news, you have likely received a few email notices addressing the changes and how they will affect the golf car industry. Within the past few weeks, I have received notices from four of my golf car parts suppliers notifying my business of price increases that either have occurred or will occur in tiers. The United States recently announced a series of tariffs being imposed on certain Chinese goods and materials. Detailed information about the tariffs can be found on the Office of the United States Trade Representative website.
Which Golf Car Related Products Are Included?
The complete list of products originally qualifying for the new tariffs includes 5,745 items and that list was released on July 10, 2018. Following the release, a six day public hearing resulting in 297 products being removed from the original list. The additional tariffs went into effect on September 24, 2018 and are in the amount of 10 percent. On January 1, 2019, those tariffs will increase to 25 percent.
Here is a partial list of golf car related Chinese products that are affected by the tariffs:
- Steering Wheels • Dashes
- Floor Mats • Light Kits
- Fender Flares • Cushion Sets
- Brush Guards • Wheels and Tires
- Utility Boxes • Windshields
- Carburetors • Lift Kits
What Does This Mean for Your Business?
The future is a bit uncertain at the moment. What we know for sure is that prices on virtually every Chinese manufactured golf car part are increasing by 25 percent. Some suppliers have graciously absorbed some of the cost of the new tariffs and are imposing 5 percent dealer price increases now and an additional price hike of ten percent after New Year’s Day. Other suppliers are increasing dealer prices effective immediately to reflect the total tariff increase.
As the situation unfolds, here are two options for golf car dealers:
- Increase Prices. Dealers are already experiencing tight margins and are forced to extend the price increases to our customers.
- Partner with American Manufacturers. There are a few US manufacturers of golf car parts, such as lift kits, golf car seat cushions, enclosures, etc. One of the functions of the tariff is to encourage dealers to promote US products.
Either of these options means that golf car dealers will have to switch gears and adjust parts of their business. Increasing prices may result in fewer sales, as middle class families are priced out of the golf car purchase and customization experience. I am confident that we can all agree that partnering with US manufacturers is a great idea and something that most of us have already been supporting for several years. However, not all of the golf car parts that are listed on the new tariff list are currently manufactured in the US. We must either stop selling all Chinese products or we continue to sell those parts that are not available in the US and increase pricing.
Many suppliers are engaged with the government seeking relief from the new tariffs, but even their best efforts may not be enough to convince the USTR. If you are opposed to the implementation of the new tariffs, the public is free to submit a comment voicing your opposition to the Commerce Department and also to your local Senators and Congressional Representatives.
Whether you view the Chinese tariffs as a positive or negative change, we can all agree that they are shaking up the golf car industry.
Julie Wilson, Owner of WHEELZ Custom Carts & Accessories, was one of the industry’s first online retailers of golf cart parts, when she founded her business in 2008. Julie’s eCommerce store, www.WHEELZLLC.com remains a popular online shopping experience for innovative golf car parts and accessories.
