Trek CEO John Burke talked to Fortune about the potential impact of tariffs on the company.
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00:00We just increased our prices last week, 10%.
00:08We're an international business.
00:10We design products in the United States.
00:12We build products in the United States.
00:14We source products in Asia.
00:17We have a large factory in Europe.
00:20We do more than 50% of our business outside the United States.
00:24We're a global company.
00:26And we've got tariff policies that are changing on a constant basis.
00:32Tariffs can have a massive impact on a company that potentially can have a huge impact on employment levels.
00:41Over 50% of Trek's business is done outside the United States.
00:44Why would it be difficult for Trek to move all of its manufacturing to the United States?
00:49We actually, this goes back to the mid-90s.
00:53We actually had a manufacturing plant that built a lot of volume bikes in the U.S.
00:58And it's really hard because the infrastructure doesn't exist.
01:02There are not frame manufacturers.
01:04There aren't parts manufacturers.
01:06Like, you can't buy tires.
01:08You don't have rim suppliers.
01:09You don't have brake suppliers.
01:10You don't have crank suppliers.
01:12All that business is gone.
01:14It hasn't been in the U.S. for 40 years.
01:16It doesn't exist.
01:17So to snap your fingers and go, let's re-shore everything.
01:21By the time you re-shored stuff and started at that, you're five years down the road.
01:27And for people to think that you can just go like that, you can't.
01:32You can't.