2018 Section 301 tariffs eliminated Rad Power Bikes' entire profit margin
Mike Radenbaugh · Rad Power Bikes: Mike Radenbaugh · Sep 7, 2020 · at 56:58
Mike Radenbaugh, founder and CEO of Rad Power Bikes, describes the financial shock the company faced when U.S. tariffs on Chinese imports were enacted in mid-2018.
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“In mid 2018, right, we were growing up really fast. And we had a lot of bikes on order compared to our balance sheet. And all of a sudden tariffs hit us really hard. E-bikes were part of the section three Oh one tariffs. So like I said, we had all these bikes on order and then all of a sudden all of them were going to cost us 25% more. That's our whole margin. That's like, that's everything that we had to reinvest in the business.”
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