I was listening to a representative of the National Bicycle Dealers Association speak on the radio, and she said President Trump's 25% tariff on bicycles imported from China will raise the price of bicycles 25% to 50%.
Huh? If a bicycle sells for $250, the cost of the bicycle to the dealer will be about $150. They will have a profit of $100.
If you add 25% to the cost for the tariff, the new cost is approximately $188. If you then add in the $100 profit that the dealer was comfortable with in the first place, the selling price of the bike is now $288, an increase of 15.2%. There is not an increase of 25% to 50%.
While a 15.2% price increase is not wonderful, the spokesperson should be smart enough and driven enough to think about it and do the math so as to not unnecessarily inflame the public.
As a mentor of mine told me many years ago: "Do the math."