Trade war raises kids' bike prices, so will they decrease now?
Kent International CEO Arnold Kamler called the tariffs 'disruptive'
Kent International CEO Arnold Kamler, who is the biggest U.S. bike manufacturer, discusses his company raising its prices this holiday season due to the China trade war.
Walmart's main bicycle provider and the biggest bike manufacturer in America, Kent International, took a financial hit during the United States' trade war with China, according to Kent International CEO Arnold Kamler.
Kamler told FOX Business' Liz Claman on Monday his company had to raise the price of its popular bikes from $74 to $88, which affected sales. Now that the trade war is appears to be coming to an end, Kamler said parents can expect kid bike prices to come back down in 2020.
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"This cost us quite a bit of money, and it's just been so disruptive to us."
He said on "The Claman Countdown" that hearing phase one of the U.S.-China trade deal was ready to go was like "Christmas and Hanukkah rolled into one."
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"This cost us quite a bit of money, and it's just been so disruptive to us," Kamler said. "But it looks like things are calming down, and we're really excited that we can get back to doing bicycle business and get out of politics."
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According to Kamler, his company paid $25 million in tariffs.
But it's not just the phase one deal that might lead to lower prices, Kamler said.
"We also got the news that part of a coalition called PeopleForBikes ... filed for a petition for exclusions on 20-inch bicycles, and the USTR approved it as of last Friday," Kamler said referring to the U.S. Trade Representative.
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Unfortunately, that approval being so late in the year means it's a little too late to help this year's holiday shopping season, Kamler said.
However, he remains upbeat on bicycle sales.
"The consumer, every year, gets later and later," Kamler said. "I mean, years ago, we used to see the business super ramp up by mid-November. And now, the sales really starting this week is when the sales go absolutely crazy."