Custom ebike business faces tariff-related dilemma upon first shipment arrival
Hey there, morning marvel! Here's what's brewing ahead:
- A couple from Visalia embarked on a venture to bring custom e-bikes for little folks, but Trump's retaliatory tariffs threw a wrench in their plans.
- What transforms when death-row inmates are granted a second chance in California? Find out in our exploration of life after the death penalty.
- Dive into our foodie round-up this month, as recommended by our talented gastronomes.
- And today's e-newspaper is yours for the taking.
Tariffs Ain't No Breeze for Electric E-Bike Makers
Remarkable tale of Kate and Ben Mosetick from Visalia, who recognized a mobility need for U.S. communities and decided to shake things up. Their little 11-year-old son William, suffering from dwarfism, loves cycling but finds it challenging. To reduce his struggles, they thought of e-bikes tailor-made for his needs, allowing him and other small peeps to effortlessly cruise roads and bike paths.
With the Australian company that produces the bikes not distributing in the U.S., the Moseticks decided to launch their own business to bring these empowering vehicles stateside. Placing their initial order of $40,000 in late December, they took on financial risks like a second mortgage and cashing their life insurance policy to fund their dream. The demand seemed substantial, with Kate noting a wave of enthusiastic customers reaching out for preorders and nearly 80 prospective clients eager to buy.
That was before Trump upended global trade with his tariffs. Unfortunately, the bikes are stored on a cargo ship heading to Long Beach, slated to arrive on May 31. However, these custom components originate from China, making them subject to the whopping 145% tariff Trump imposed on Chinese products, plus a 25% pre-existing tariff on e-bikes, bringing the Moseticks' import fees to an eye-watering 170%. Their original $40,000 order would now cost them close to $68,000.
Ben described the tariffs as a "time bomb sailing our way," as selling at their current price would result in a significant loss. They've been hesitant to fulfill preorders, but without them, they'd struggle to raise the necessary funds to clear the bikes through customs, leading to potential abandonment at port. The little people community has been eagerly awaiting these bikes, but the steep tariff surcharge could deter prospective buyers, as expressed by Kate who confirmed that potential customers are "hesitating a lot about that price."
Because the bikes are custom-built with unique components specifically for little people, the Moseticks' options are limited if they need to switch manufacturing outside of China. The lack of certainty is worrying, as Ben stated, "My concern is just the unpredictability of it all – it's impossible to make decisions." Kate offered a glimmer of hope via email last Thursday, reporting that someone had made a preorder "tariff and all."
We connected with the Moseticks after Kate responded to our reader survey seeking tariff concerns in California. If you'd like to share your own experience, feel free to let us know here.
Today's Top Stories
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California's student discipline law, keeping Black and Latino kids in class, has come under fire from President Trump. He has signed an executive order that potentially sets the stage for challenging the law, which prohibits student suspensions for willful defiance.
Trump's harsh tactics at the border have resulted in a decrease in illegal crossings, reaching their lowest point this century. The focus has shifted towards deporting migrants already inside the U.S., where locating, detaining, and removing them is more time-consuming and expensive than at the border.
Learn more about the tumultuous L.A. juvenile halls, the ongoing labor standoff between Starbucks and its baristas, the rising demand for warehouses in L.A. amid tariff turmoil, possible changes for LeBron James, and updates on Alec Baldwin's movie "Rust."
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Commentary and Opinions
7 million people battle Alzheimer's. Steve Lopez wonders why the Trump administration seems to be undermining efforts to combat the disease.
Thanks to the Trump slump, Florida and other states have taken the initiative to scrap child labor protections. Columnist Michael Hiltzik weighs in on the issue.
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Must Reads
Uncover the lives of inmates following California's death-row moratorium, explore evangelism and Erewhon in L.A., and delve into the mind of a highly successful hustler through the book "The Hustler’s Playbook" by Mike Essex.
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For Your Leisure Time
Go out and enjoy our expert picks for the best places to eat and drink this month. Discover 11 L.A. happenings in art, fashion, and fragrance, immerse yourself in rare lilac blooms for the last time on your spring road trip, unwind with the Netflix series "The Four Seasons," learn how to prepare Grandmother's Sicilian-style stuffed artichokes, and tackle our free daily crossword, sudoku, word search, and arcade games.
And check out Robert Gauthier's photo from Game 5, where the Lakers were defeated by Minnesota, bringing their season to an end.
Have a fantastic day, from the Essential California team
Ryan Fonseca, reporterAndrew Campa, Sunday reporterKarim Doumar, head of newslettersKevinisha Walker, multiplatform editorChristian Orozco, assistant editor
Browse our top stories, topics and latest articles on our website.
- Kate and Ben Mosetick from Visalia, driven by their son's need for e-bikes, founded a business to bring custom-made e-bikes to U.S. communities, but Trump's tariffs threaten their venture.
- The Moseticks' initial order of $40,000 for the bikes, which are stored on a cargo ship bound for Long Beach, will be hit by a 170% tariff due to their Chinese components.
- The steep tariffs could lead to significant losses for the Moseticks, forcing them to reconsider their business strategy and potentially disappoint their customers.
- The little people community eagerly awaits the bikes, but potential customers are hesitant about the high prices caused by the tariffs.
- If you have concerns about tariffs in California, feel free to share them with us.
- Los Angeles officials claim the rental market is meeting the needs of survivors following the L.A. wildfires, but national and local advocates question the adequacy of housing for displaced individuals.
- California's student discipline law, keeping Black and Latino kids in class, is facing criticism from President Trump, who has signed an executive order potentially challenging the law.
- Trump's harsh tactics at the border have resulted in a decrease in illegal crossings, but locating, detaining, and removing migrants already inside the U.S. is more time-consuming and expensive.
- Steve Lopez wonders why the Trump administration seems to be undermining efforts to combat Alzheimer's disease.
- Florida and other states have scrapped child labor protections, a move criticized by columnist Michael Hiltzik.
- The Lakers' season ended in defeat, but columnist Bill Plaschke sees hope for the future.
- Uncover the lives of inmates following California's death-row moratorium, explore evangelism and Erewhon in L.A., and delve into the mind of a successful hustler.
- Discover the best places to eat and drink this month, immerse yourself in rare lilac blooms, unwind with the Netflix series "The Four Seasons," learn how to prepare Grandmother's Sicilian-style stuffed artichokes, and tackle daily crossword, sudoku, word search, and arcade games.
- Check out Robert Gauthier's photo from Game 5, where the Lakers were defeated by Minnesota, ending their season.
- Have a fantastic day, from the Essential California team.
- Ryan Fonseca, reporter
- Andrew Campa, Sunday reporter
- Karim Doumar, head of newsletters
- Kevinisha Walker, multiplatform editor
- Christian Orozco, assistant editor
- Browse our top stories, topics, and latest articles on our website.
