Tag Archive: Tariffs

  1. Partial US tariff relief for the e-bike industry

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    Sources: Electrek, Al Circle

    After a concerted period of advocacy by bike-industry interest group PeopleForBikes, it was recently confirmed by the US White House that e-bikes, bikes and frames will not be subject to new tariffs on steel and aluminium, while some pre-existing tariffs on these materials are being removed altogether.

    It had been proposed last year to apply tariffs of up to 50% on the steel and aluminium content of standard and electric bikes, which would have had serious financial and practical implications for companies in the industry, with complex calculations on the exact metal composition of imported bikes and frames required, alongside the additional expense which would likely have been passed on to end users in an already expensive consumer-product market segment.

    PeopleForBikes mobilised numerous players in the e-bike and bike industry, to deliver a coordinated pushback against the proposed application of these tariffs. Over 1,300 public comments were submitted against their implementation, while PeopleForBikes also consulted with Congress members and senior figures at the Department of Commerce to emphasise the potential economic damage to the industry.

    The action went a step further, with the broader “inclusion request” process also being scrapped; this could have added e-bikes and bikes to the tariff list in the future, giving added reassurance to the sector. It should be noted that tariff duties continue to apply to component items such as steel chains, bearings and other assorted hardware and hand tools.

    PeopleForBikes CEO and President, Jenn Dice, said, “This is a clear example of what happens when our industry shows up together. We’re incredibly grateful to the manufacturers, suppliers, retailers, and riders who stepped up and made their voices heard. We also want to recognize the hundreds of companies and leaders who took action, writing letters, submitting comments, and sharing their stories. This win belongs to the entire industry.”

    Electrek journalist Micah Toll highlights that “This is also a reminder that e-bikes are no longer a niche category. The fact that the industry could mobilize that level of response and get the attention of policymakers shows just how important micromobility has become in the broader transportation landscape. For now, at least, that’s one less headwind for an industry that’s still trying to make car-free transportation more accessible.”

  2. The bicycle industry could face imposition of US reciprocal tariffs

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    Source: Bicycle Retailer

    President Donald Trump announced plans to introduce reciprocal tariffs that could take effect as early as April 2, 2025, potentially impacting the US bicycle industry and its largest supplier nations.

    The executive memo, released on Thursday February 13, directs officials to adjust US import duties on a product-by-product basis, matching each nation’s tariffs on equivalent US products. This move could lead to significant increases in tariffs on bicycle products, as some major supplier nations impose relatively high tariffs on US bikes, e-bikes, and related products, even though these countries rarely import such goods from the United States.

    Major supplier nations that may be affected

    Vietnam, which has become a popular alternative manufacturing hub to China, currently imposes a 45% tariff on US bikes and a 55% tariff on US e-bikes. Should reciprocal tariffs be enforced, Vietnam-made bicycles could face US duties nearly identical to those currently levied on Chinese imports.

    India, considered a growing source for the US mass-market bicycle industry, has a 20% tariff on US bicycles. Reports suggest that India recently reduced this rate to 15% ahead of Prime Minister Narendra Modi’s visit to the United States. A matching increase in tariffs on Indian bicycles would raise US rates from 11% or 5.5% to 15%, a modest adjustment.

    Malaysia, where Shimano manufactures a variety of bicycle components, maintains a 5% tariff on most US parts and a 6% tariff on US bikes. Currently, the US imposes an 8% tariff on pedals and other components from Malaysia and most other countries.

    EU tariffs to be evaluated

    The European Union imposes a 4.7% tariff on US bike saddles, lower than the 8% that the US currently charges on EU saddles. However, the EU’s 15% tariff on American bicycles could lead the US to raise its own tariffs on European road and mountain bikes. Trump’s directive also requires officials to consider value-added taxes (VAT) imposed by EU nations when calculating reciprocal rates.

    Tariff uncertainties

    Questions remain regarding the implementation of these tariffs, particularly whether the US might lower some rates to match those of trading partners. It is also unclear how foreign governments might respond, with some likely adjusting their tariffs to avoid escalating trade tensions, while others may retaliate.

    Another uncertainty involves the logistics of updating and managing over 17,000 US import codes to reflect the tariff structures of the 186 countries on the Most Favored Nation list. While Republicans in the US House of Representatives have introduced legislation to grant presidents the authority to impose reciprocal tariffs, that legislation has not advanced. As a result, the legal framework Trump might use to enforce these tariffs without congressional approval remains uncertain.

    Industry stakeholders will be watching US trade policy closely in the coming weeks to see if negotiations can avert a trade war that could potentially reshape global supply chains and impact consumer prices.