the 10% tariff hike on nearly $200 billion in chinese goods forced zagata to raise some prices. >> this one of our most popular bikes. it was 449 last summer, it's now 499. >> reporter: the white house announced that 10% will increase to 25%, a change that will result in yet another hike on the showroom floor. >> since september we've been paying an extra $10. now we're at $15.50. with this additional tariff it's another $15. so we're talking $30.30 for every bicycle we import, every $100 we spend, $30.30. our cost is $61 that we're paying in duties to the government. >> reporter: zagata says that means some of his customers will be paying more for the same bike. >> it's difficult for me. i can't call my customer and say, guess what, you're getting a better grip set, luxury saddle. the money is going to the government. >> reporter: it's been a rough ride since president trump waged his war with china. zagata blames the uncertainty that comes with trade negotiations. >> it's not difficult for us as a business to decide what to do. we've built financial models, we can punch in variables.

september the trump administration's 10% tariff hike on nearly $200 billion in chinese goods forced zagata to raise some prices. >> this has been one of our most popular bicycles. it was a 449 bike last summer. it's now 499. >> reporter: then on friday the white house announced that 10% will increase to 25%. a change that will result in yet another price hike on the show room floor. >> reporter: >> for every $100 we spend on bicycle, we pay $5.50 in duties. with this additional tariff, it's an additional $15. so we're talking $30.30 for every bicycle we import for every $100 we spend, 30.50. on $200, our cost at the factory is $200, it's $61 that we're weighing in duties to the government. >> reporter: he says that means some of his customers will be paying more for the same bike. >> it's difficult for me. i can't call my customer and say guess what, you're getting a better wheel set, better grips and this luxurious leather saddle. unfortunately that's going to the government. >> reporter: it's been a rough ride since president trump waged his trade war with china. >> it's not difficult fo

. >> reporter: may be asking, why doesn't zagata do what the president wishes could be done, build the in the united states? it is simply not that easy. you see, most of the components that it takes to build that bicycle, the spokes, the wheel, the saddle, et cetera, a lot of those different items, fred, they come from asian countries. even if you were to import them into the united states and actually build the bike here, technically, you'd still be subject to that 25% tariff. no way around it. >> all right. polo sandoval, thank you so much. >>> coming up, a 14-year-old student dragged by a school bus. now, his mother is suing, alleging racial animus. the latest on the case, next. lf veteran's affairs partnered with t-mobile for business, to help care for veterans everywhere. with va video connect, powered by t-mobile, men and women who serve can speak to their doctors from virtually anywhere, and get the care they deserve, so they can return to their most important post. best friend, quarterback, or just dad. the va provides the care, t-mobile provides the coverage. and i don't add t