PHOENIX (BRAIN) — State Bicycle Co. announced on its website that an 8% "tariff recovery fee" is being applied to its products at checkout while warning it expects bike and component shortages for high-demand models similar to early pandemic levels.
State Bicycle co-founder Mehdi Farsi told BRAIN in an email the brand has not received any shipments from China that departed after April 5 and has been subjected to the existing 25% Section 301 and the 20% tariffs.
"The 8% surcharge we've implemented is designed to offset the current tariff burden while maintaining transparency with our customers," Farsi said. "It's our way of saying, 'Hey, here's what's going on, and here's how we're dealing with it,' rather than just quietly hiking MSRP across the board like much of the industry."
Farsi said MSRP increases down the line are possible if tariffs escalate. "But for now, we're optimistic — whether through trade negotiations or restructuring our supply chain, we're hopeful this pressure is temporary."
The company has paused discounts and "major" marketing, he said, "so in practice, that 8% carries more weight than it might seem at first glance. It's a balancing act between staying solvent and staying honest with our community." The tariff fee is refundable if a customer returns an item.
After enacting the April 2 tariff increases, President Trump announced a pause on "reciprocal" tariffs while increasing those on China to 145% and maintaining a new 10% tariff in place for the rest of the world.
