Bicycle Retailer and Industry News - Tariffs

Updated tariff timeline: How we got here

Steve Frothingham — Fri, 30 Aug 2019 17:16:53 +0000

UPDATED Sept. 11, 2019

BOULDER, Colo. (BRAIN) — Tariff news is piling up on the industry, making heads swirl from Washington to Long Beach to Boulder.

To help you, and us, keep track, we have prepared a timeline, below. We'll have to keep updating the timeline as things develop. If you have a question, shoot it over to BRAIN’s Steve Frothingham at Sfrothingham@bicycleretailer.com or leave a comment.

Pre-existing tariffs

During the Kennedy administration the import duty on bikes was 30%. But in recent years most complete bikes have been subject to an 11% tariff; the rate for most road bikes is half that. Before the new Section 301 tariff imposed last year (see below), e-bikes had no tariff.

Parts and accessories are generally subject to tariffs between 0-10%. The tariff on pedals, for example, is 8%, while that on pumps is 3.7%.

All the new and proposed tariffs in the news in the last year are in addition to the pre-existing tariffs. So for example the new 25% tariff on Chinese bikes, made official this month, is on top of the 11% tariff most bikes already are subject to, for a total of 36%.

Many missed the news in September 2018, but there was a tariff reduction that month. President Donald Trump signed the Miscellaneous Tariff Bill Act of 2018, which reduced some of these underlying tariffs (in imports from all countries, not just China) without affecting the new Section 301 or Section 232 tariffs. For example, the bill lowered the rate on disc brakes from 10% to 7.5%, and the rate for unicycles went from 3.7% to 0%. It also slightly reduced the tariffs on some cycling shoes.

New and proposed tariffs, in chronological order:

The U.S. tariff on steel and aluminum

Applies to: U.S. imports of raw steel and aluminum from most countries
Rate: 25% on steel, 10% aluminum
Date proposed: March 8, 2018
Date applied: March 23, 2018
Type of tariff: Section 232, related to national security. (There's more on Section 232 tariffs on the Department of Commerce site)

Annual import value of products, 2018: $40 billion
Notable exclusions: Steel from Argentina, Australia, Brazil, and South Korea (Argentina, Brazil and South Korea are limited by import quotas); aluminum from Argentina and Australia (Argentina limited by quota). Under NAFTA, Canadian and Mexican materials were exempt until May 31, 2018.
Impact on our industry: Many U.S. manufacturers tell BRAIN that material costs — even for U.S. made steel and aluminum - have increased significantly. This put them at a disadvantage relative to foreign manufacturers, because only the materials, not completed products, are subject to this tariff. Some U.S. manufacturers favored an increase in tariffs on completed products because it helped reduce that disparity.
Status: Mexico and Canada continue to negotiate new trade agreements in hopes of eliminating the tariffs; with a Canada/US deal announced on May 17. The EU and the U.S. also continue to negotiate on this and other trade issues.
Retaliation: Canada, Mexico, and the European Union each enacted retaliatory measures.

Section 301, List 1 (GPS and bearings)

Applies to: U.S. imports of a wide array of Chinese products, including GPS bike computers and ball bearings
Rate: 25%
Previous tariffs: GPS: 0%; Bearings: 4-10% depending on type.
Date proposed: April 6, 2018
Date enacted: July 6, 2018
Type of tariff: Section 301 (More on Section 301 on the USTR website)
Annual import value of all List 1 products, 2018: List 1 represented $34 billion in imports, out of an original proposal of $50 billion. List 2 (below) made up the $16 billion difference.

Impact on our industry: Caused some GPS makers to move production out of China, usually to Taiwan. Raised costs of U.S.-made components that include Chinese-made bearings, and replacement bearings. Caused some bearing suppliers to move production or assembly out of China.
Retaliation: China announced its own list of U.S. goods subject to new tariffs.
Status: Still in place.

Section 301, List 2 (Chinese e-bikes and motors)

Applies to: An array of Chinese products, including e-bikes and e-bike motors.
Tariff rate: 25%
Previous tariff on e-bikes: 0%
Type of tariff: Section 301
Annual import value of all List 2 products, 2018: $16 billion
Date proposed: June 20, 2018
Date applied: Aug. 23, 2018

Impact on our industry: Several manufacturers, including Trek and Pedego, testified against the proposal in Washington. The tariff had more effect on lower-priced e-bikes sold online and other channels. Sales statistics show the e-bike remained the fastest growing segment in the industry, despite the tariffs.
Retaliation: China announced a second round of U.S. goods subject to retaliatory tariffs.
Status: Still in place. Bike trade groups and brands requested exemptions, but the USTR denied those requests in January.

Section 301, List 3 (Chinese bikes, parts and accessories)

Applies to: Wide array of Chinese products, including most complete bikes and bike parts and accessories, plus other items the bike industry uses and sells, like tools and water bottles.
Notable exceptions: Helmets and lights were exempted for safety reasons. Cycling apparel and shoes also are not included. A variety of bike parts and accessories that are not elsewhere specified or included in the HTS import codes (NESOI, in importer jargon) fall under the 8714.99.8000 code. That code was NOT included in this round, but items under that code are subject to a pre-existing 10% duty. This includes about 40 types of products, including pump clips, bike radios and horns, kickstands, wide-angle reflectors, seatposts, toe clips, spoke reflectors and more. HTS 8714.99.8000 is included in List 4 (see below).
Tariff rate: 10% starting September 2018, was set to increase to 25% on Jan. 1, 2019, but the increase was delayed. Now set to increase to 25% on imports that arrive after June 1.
Previous tariffs: The 10% and 25% tariffs are in addition to existing tariffs on bike products, discussed above.
Type of tariff: Section 301
Annual import value of all products on List 3, 2018: $200 billion.
Date proposed: July 17, 2018
Date applied: 10% took effect Sept. 24, 2018. It increased to 25% on May 10, 2019, applying to imports that arrive after June 1.

Despite the notable exceptions, this is a big, wide ranging list of bike stuff.

Impact on our industry: Despite the notable exceptions mentioned above, this is a big, wide ranging list of bike stuff. Evidence: In 2018 the bike industry imported at least $1.1 billion in products on this list from China, representing half the industry’s imports. Since September, the 10% tariff has led to wholesale price increases of around 5% on these products, retailers said. Suppliers tell us efforts to re-source products and the uncertainty has been costly. The increase to 25% is expected to cause significant wholesale and retail price increases.
Retaliation: China is running out of U.S. imports to hit with new tariffs in response. After the U.S.’s 10% increase in September, China announced new tariffs of 5-10% on $60 billion in U.S. exports to the country, including agriculture products and natural gas. After the announced increase to 25% in May, China said it would increase tariffs on $60 billion in other U.S. imports on June 1.
Status: Negotiations continue.

Section 301, List 4 — (Almost everything else from China)

Applies to: U.S. imports of Chinese goods, including most or all of the bike products not included in List 2 or List 3.
Tariff rate: up to 25%
Type of tariff: Section 301
Annual import value of all products on List 4, 2018: $300 billion.
Date proposed: May 13, 2019
Date to be enacted: Any time after June 24 in any amount up to 25%, on top of the regular rate of duty.

Impact on our industry: Adds in most or all bike-related items that were not in List 3, including lights, helmets, unspecified parts and accessories, apparel and footwear. The industry is planning to submit requests to exclude bicycle products from this round of tariffs.

Status: A public hearing was held June 17 at which the bicycle industry was represented. On June 29, at the G20 summit in Japan, Trump said he and Chinese President Xi had agreed to a truce and that the U.S. would not impose the new tariff on List 4. On August 1, Trump said Xi had not followed through in promises made in June and said List 4 would be hit with a 10% tariff on Sept. 1.

Status update Aug. 13, 2019: Trump announced that some products on List 4 will get a holiday shopping season reprieve and not get hit with the new tariff until Dec. 15. That included cell phones, laptops — and balance bikes. However, all other bike products on List 4 were set to still receive the 10% tariff on Sept. 1. That included helmets and lights, which were exempt from previous rounds for safety reasons.

Status update Aug. 30, 2019: The USTR announced the new tariff on List 4 would be 15%, not 10%, after China announced retaliatory measures. The 15% would be imposed on List 4a on Sept. 1 and List 4b on Dec. 15. The USTR also said the 25% tariff on Lists 1,2, and 3 would increase to 30% on Oct. 1, 2019.

Status update Sept. 11, 2019: Trump tweeted that the increase on Oct. 1 would be delayed until Oct. 15 as a good will gesture.

Section 301, EU list

Applies to: U.S. imports of products from the European Union, including some bike products.
Tariff rate: Up to 100%
Type of tariff: Section 301
Annual import value of all products, 2018: $11.5 billion
Date proposed: April 8, 2019
Public hearing: May 15-16, 2019

Impact on our industry: Applies to imports of EU parts, including sprockets and hubs.
Retaliation: The EU has proposed retaliation that would include some sprockets and hubs from the U.S.
Status: Matt Moore, representing the BPSA, was scheduled to speak at a public hearing about this proposal on Thursday, May 16. Comments were being accepted until May 28 at regulations.gov/docket?D=USTR-2019-0003.

Editor's note: We've corrected our reference to the import duty on bikes during the Kennedy administration. The correct figure is 30%, not 50% as we had said. Thanks to James Longhurst, Ph.D., an associate professor in the history department at the University of Wisconsin La Crosse for nicely pointing out our mistake.

Bike imports down 24% year-to-date

Steve Frothingham — Sat, 13 Dec 2025 02:32:25 +0000

WASHINGTON (BRAIN) — U.S bike imports were down 24% in units and 16% in dollar value through September this year, according to new data released this week.

Through the first three quarters, the U.S. imported 6.3 million bikes, down from 8.3 million over the same period last year. The import value was $667 million, down from $792 million.

September imports from most countries declined steeply from recent months, with imports from China down 37% in dollar value from August.

Following the federal government shutdown the Census resumed releasing import data last month with the August data. The latest release, for the September data, is about a month later than its normal schedule. The agency has not announced a full data release schedule.

Third-quarter imports increased over Q2, but were well below the same quarter last year.

Guest editorial by Pat Cunnane: It’s time to break the cycle of uncertainty

Steve Frothingham — Tue, 09 Dec 2025 19:16:30 +0000

The U.S. Bicycle Production and Assembly Act is the Answer.

By Pat Cunnane

Business thrives on certainty. It is a prerequisite for investment, hiring, and long-term planning. Yet for the American bicycle industry, the last three decades — and especially the last five years — have been characterized by anything but. Over time this instability has led to a total collapse of domestic bicycle manufacturing. That is why Congress should pass the U.S. Bicycle Production and Assembly Act (H.R. 3904) to halt this cycle of uncertainty and weakness and forge a strategy to bring bicycle assembly and manufacturing back to the United States.

The U.S. Bicycle Production and Assembly Act (H.R. 3904) is bipartisan legislation designed to eliminate the primary cost barrier that prevents large-scale bicycle assembly and manufacturing from returning to the United States. Its central mechanism is the creation of a temporary, 10-year duty-free window for specific imported bicycle components, provided those components are used exclusively for final assembly or manufacturing of complete bicycles (including e-bikes) in the U.S.

Today’s statistics tell the sobering story: more than 97% of all bicycles sold in the United States are imported. The existing Section 301 Tariffs (imposed during the first Trump administration and extended by the Biden administration) and the new reciprocal tariffs imposed this year — which are subject to a Supreme Court ruling — alone will not bring production back to the U.S. But passing H.R. 3904 can help us get where we need to be.

The Cost of Uncertainty

The current trade environment, marked by the sudden imposition of the International Emergency Economic Powers Act (IEEPA) tariff, the ongoing application of Section 301 tariffs, and the threat of Section 232 steel and aluminum tariffs, forces companies into constant, reactive tactical supply chain maneuvers rather than strategic domestic investment. Instability does not encourage reshoring; it simply leaves businesses guessing where the next bicycle or component will be built, resulting in inventory chaos and supply chain whiplash.

The contrast with the past is stark. In 1992, according to Bicycle Retailer and Industry News, almost 9 million bicycles were manufactured in America. By 1999, when Huffy closed its last U.S. manufacturing facility, the era of U.S. bicycle production was dead, with fewer than 200,000 bikes being made domestically.

In the mid-1990s, the U.S. bicycle industry — led by major manufacturers like Huffy, Murray, and Roadmaster — attempted to fight back against unfair Chinese competition by lobbying the government to impose anti-dumping duties on China-made bicycles. When those efforts failed, the economic foundation of these legacy American brands, and the supply chain that supported them crumbled. At the same time, most other countries — including the EU, Mexico, and Canada — imposed anti-dumping duties on China, while the U.S. did not.

In 1996, the U.S. International Trade Commission (ITC) issued its final ruling on the anti-dumping case finding that imports of low-cost, mass-market bicycles from China did not pose a “material threat” to the three major U.S. bicycle manufacturers: Huffy, Murray and Roadmaster. This decision not to protect the U.S. bicycle manufacturing base led directly to its demise.

During the first Trump administration, Section 301 tariffs were imposed on most bicycles and bicycle parts from China. At that time, 95% of all bikes sold in the U.S. were made in China. It is important to note that these tariffs have had a significant cost to consumers. Comparing prices from 2016 to November 2025 illustrates the result:

Time Period	Item Type	Normal Walmart Price (MSRP/Everyday)	Approximate Price Increase
2016	Mid-Range 16" Kids' Bike	$80.00 to $98.00	N/A
Nov 2025	Mid-Range 16" Kids' Bike	$108.00 to $148.00	$30.00 to $50.00
Percentage Change			~ 35% - 50%

With bicycles, we know who pays the tariffs: Consumers. Consumers are paying as much as 50% more for the same bicycle at Walmart in 2025 as they paid in 2016, before Section 301 and other tariffs were imposed — an increase significantly higher than general inflation for the same period of 26%.

We Need an Incentive — Not a Penalty — to Act

The cycle of dependency on imported bicycles continued through the first Trump administration’s trade actions (then continued by the Biden Administration), which imposed 25% Section 301 tariffs on Chinese-manufactured bicycles and many parts. While this theoretically created an incentive for domestic production, that didn’t happen.

The industry instead devoted resources to lobbying for tariff exclusions and simultaneously began a mass relocation of manufacturing — not back to the U.S., but to other low-cost countries, such as Cambodia, Malaysia, India and Vietnam, to escape the China tariffs. This merely created new supply chains that are just as fragile and geographically distant as the ones they replaced. Tariff policy, in its current form, only moves manufacturing out of China; it does not bring it back to the U.S.

This failure of trade policy is directly hurting current U.S. bicycle businesses. Increased landed costs for bicycles and components due to the tariffs are dragging down bicycle sales across all sectors. As sales and profits decline in our industry, the direct result is that companies are not hiring, not investing, and in some cases, closing or filing for bankruptcy.

And this is happening now: when the use of bicycles in the United States is on the rise.

The consequence of this trade policy is grimly demonstrated by its structural flaw: the system actively punishes American companies seeking to reshore production. Any domestic operation committed to U.S. assembly – such as those supported by the 2013 Walmart "U.S. Manufacturing Initiative’ – faces an insurmountable barrier because of the costs imposed by the government on the very inputs needed to make bicycles here.

This illustrates the central economic paradox: It is drastically less expensive to import a fully assembled bicycle — constructed with the exact same Chinese-made components (so long as the frame is not made in China) — from a third-party country like Vietnam, Malaysia, or Cambodia (where the duty is 11% before reciprocal tariffs) than it is to import the necessary parts from the established China supply base (subject to the combined Section 301, reciprocal, and fentanyl tariffs) for final assembly in the U.S. The U.S. government is inadvertently penalizing domestic assembly operations.

One tragic outcome of this flawed structure was demonstrated when the Bicycle Corporation of America (BCA) established in 2014 stopped its U.S. assembly operations in 2025.

The Path Forward: Stability Through H.R. 3904

The path forward to revitalizing bicycle manufacturing requires the unified, long-term industrial strategy embodied in the U.S. Bicycle Production and Assembly Act, introduced in a bipartisan effort by Reps Vern Buchanan (R-FL) and Mike Thompson (D-CA) in June.

The bill is attracting co-sponsors from both parties who recognize this bill will both protect existing businesses in their districts and allow them to grow and add more jobs. One example of this is true for Worksman Cycle, when visiting their factory in Conway, S.C., their congressman agreed to support HR 3904. He understands the negative impacts of the current tariffs on Worksman Cycles' efforts to maintain its current business and to grow. Worksman is the oldest continuously operating bicycle manufacturer in the USA. Worksman is also a leading exporter of American-made bicycles. These tariffs are making their export business more difficult, because of the higher costs for parts not manufactured in the USA by anyone, they now must pay higher tariffs. These tariffs provide an advantage for their competitors manufacturing in other countries.

This legislation is a smart, targeted solution that addresses economic imbalances directly. It suspends tariffs, including Section 301 duties, and reciprocal tariffs, on imported bicycle components if those components are used specifically for final assembly in the United States.

This bill will also support U.S. parts manufacturers. According to Nicole Johnson at Boyd Cycling, HR 3904 “gives American manufacturers like us more local customers and the stability and cost structure needed to expand production, hire more U.S. workers, and strengthen the domestic cycling supply chain.”

Crucially, the bill offers a 10-year period of stability. This is the durable, predictable framework that businesses need to commit major capital investments — the kind required for assembly automation, specialized facilities, and the resurrection of a domestic supply chain. The bill even sets clear, measurable goals: assembling 2 million bicycles annually in the U.S. within five years and a goal of 5 million within 10 years.

Overtime, the reshoring of critical parts used in the assembly of bicycles will return to the United States. Our market is large and can support a robust supply chain. We see this all around the world — when bicycle assembly moves from one country to another, the parts suppliers follow. We can simply look at the development of the supply chain in different regions of China — and new supply chains in Vietnam, Cambodia and India.

A Blueprint for American Renewal

Passage of H.R. 3904 will also create a critical workforce dividend by meeting the need for employment among less-skilled workers in specific regions. The initial assembly jobs offer an accessible entry point to the industrial sector, serving as essential, on-the-job trade training grounds for the next generation of American manufacturing workers. These plants, located in communities hungry for industrial investment, will provide a foundational workforce for the next phase: the higher-skilled component manufacturing (frames, wheels, complex parts) that will follow the assembly operations back to the U.S. One can look to Europe, which protected its bicycle industry in the 1990s by imposing anti-dumping duties on China, Europe continues to produce most of the bicycles sold there domestically, supported by well-established component and frame suppliers.

The U.S. Bicycle Production and Assembly Act is more than just a bike bill. It is a model for bipartisan, stable trade policy that uses targeted, long-term certainty — rather than short-term punitive actions — to incentivize reshoring. By establishing this predictable framework, we can secure jobs, shorten supply chains, and reignite a proud piece of American industrial heritage. The time to change the cycle of uncertainty to one of collaboration, stability, and opportunity.

Patrick J. Cunnane is the founder of Stoker Strategies, a consulting business helping business leaders with their businesses. He has decades of experience as a CEO and has been active on trade issues for the past 35 years, including testifying to the USTR on the 301 Tariffs and de minimis.

DeFeet restructures manufacturing to work with local partners

Steve Frothingham — Mon, 24 Nov 2025 16:45:00 +0000

A version of this article is in the December issue of Bicycle Retailer & Industry News.

HICKORY, N.C. (BRAIN) — After 33 years of manufacturing its socks and other products in-house, DeFeet is shifting to the use of nearby partners for knitting. The company is continuing to buy yarn from domestic sources and handle R&D, marketing, sales and other functions at its "clubhouse" headquarters in Hickory, said founder Shane Cooper.

But the company is no longer vertically integrated, he said.

Cooper explained that the move was made necessary in part by a shrinking local workforce. With several workers retiring or leaving because of illness in recent years, DeFeet was unable to staff a second shift at its factory, which he said is key to efficiency. Several veteran employees departed, making it difficult to train new workers.

DeFeet's remaining production workers are taking jobs at one of three local factories that will now do production for the brand. Some DeFeet manufacturing tools are being moved to the other factories, some of which DeFeet has worked with, for some processes, since the brand's inception.

The company now has about 15 employees and is operating out of the clubhouse, which includes a shop and cafe, and an additional 10,000-square-foot space nearby for storing yarn and inventory. The facility also houses sublimation machinery that allows DeFeet to now, for the first time, offer custom socks with a one-sock minimum order, for teams or shops. The company will continue to do the sublimation in-house.

Cooper plans to sell a 50,000-square-foot building that previously housed the DeFeet factory.

Cooper noted that the trade war has cut into sales, especially in Canada, where the government has imposed new trade barriers for U.S. exporters and consumers are avoiding U.S. products. The MEC outdoor retail chain, for example, has stopped stocking DeFeet. "The tariffs might be good for U.S. manufacturing someday. So far it's been devastating to DeFeet," he said.

"The changes we've needed to adjust to over the last 33 years are unbelievable, but we've always faced them through a strategic and positive lens, like being in a race." Cooper said. "Since COVID, crosswinds in the cycling industry have been quite fierce at times. Joining with other local companies to create a faster, more powerful business environment for the continued evolution of knitting technology in our area, that's just another echelon for us."

On the racing front, DeFeet is enjoying a string of victories, with its aero socks used by the winners of all three men's grand tours and the Tour de France Femmes in 2025. The brand sponsors and supplies the Visma-Lease-a-bike, Trek Factory Racing and Lotto teams, among others.

DeFeet's clubhouse in Hickory, N.C., serves as HQ, a cafe and store.

eBliss will assemble in the US, but that’s just part of the story

Steve Frothingham — Tue, 21 Oct 2025 13:00:00 +0000

A version of this article ran in the October issue of Bicycle Retailer & Industry News.

UTICA, N.Y. — In a time of tariffs, July’s announcement that eBliss Global will open an e-bike factory in this upstate city garnered considerable mainstream media attention.

The startup’s founders — who include an array of U.S. specialty industry veterans — announced they will invest $4.1 million to begin assembling e-bikes, initially using imported frames and components.

eBliss Global has been selling imported e-bikes for several years under the Always Bikes brand through a variety of channels. The e-bikes that will be assembled in Utica will be sold exclusively at IBDs and bear the Ride label, a brand initially developed by former boutique bike maker Tony Ellsworth, who is a partner and chief design officer at eBliss.

In September, eBliss and state, county and local entities announced an “eMobility Technology Region” in upstate New York to support more manufacturing in the region.

The domestic assembly vibes are headline-worthy, and if it evolves to frame welding and the coveted “Made in USA” label, it will be a rare accomplishment.

Several e-bike companies assemble in the U.S., including Electric Bike Company in California (Editor's note: EBC closed down in early October, after this article went to press) and Life EV in Florida. Before shutting down, Detroit Bikes also made e-bikes in the U.S., using a steel frame made in-house. Guardian also assembles bikes and builds some frames at its Indiana plant. High-end e-MTB brands like Pivot and Yeti also assemble bikes in the U.S., and Blaupunkt recently announced plans to assemble its folding e-bikes in the U.S.). But we are aware of no e-bike brand currently with U.S.-made frames and assembly.

eBliss’s plan is to reach that milestone in several steps, said Bill Klehm, the company’s CEO and chairman. “It’s a progressive roadmap,” Klehm told BRAIN.

Phase 1 is assembling e-bikes from imported parts including frames and wheels. By Federal Trade Commission rules, these bikes can be labeled “Built in the USA with Global Parts.”

By early 2026, the company plans to start building wheels in New York. And Klehm said running changes will add “four to six” U.S.-made components to the bikes next year. That will allow a “Built in the USA with USA and Global Parts” label. He declined to say which parts he expects to be able to source from the U.S.

The final phase includes frame welding and finishing, allowing the “Made in the USA” label.

Klehm said he’s not intimidated by domestic frame building.

“That’s not a big scary ghost. Laser welding or automated welding of frames: It's been done a few times around the world. There’s no unobtainium in frames,” he said.

Klehm said in five years, the roadmap calls for only about 8-10% of the value of eBliss bikes to be imported (and subject to tariffs). That includes tires, wiring harnesses, controllers, and rear hub motors that he doesn’t expect to be made in the U.S. soon.

IBD-friendly plan

The company reckons its leadership team has 600 years of experience in the IBD channel, informing product and program decisions and more.

Industry veterans include Klehm, who was CEO of Fallbrook Technologies, which launched the NuVinci Continuously Variable Transmission.

Tony Ellsworth spent 30 years building handmade bikes under his name and eBliss Vice President Steve Richey is a former VP at Denago eBikes, a product and purchasing director at KHS Bicycles, and founded a California retail chain with six locations.

Tom Roth, owner of an independent sales agency, is leading eBliss’s team of 18 sales reps. Roth is well known by retailers, having worked with brands including ASI/Fuji, Haro, Univega USA and Trek. Roth started in the industry as a shop mechanic.

The brand’s inside support staff includes a supply chain advisor and a dealer advocacy representative who is a former bike shop owner. A third internal advisor is a former bike mechanic whose job is to ensure shop mechanics’ concerns are heard.

Klehm said the e-bikes are being designed thoughtfully for long-term retailer and consumer confidence.

The Ride lineup includes nine models retailing in the $2,000-$3,000 range, including a folding model. Where possible, the models share components, including electrical parts, to simplify life for shops. Parts have a three-year warranty and the company promises any unique components will remain available for five years after the date of the model’s last sale. Components like seatposts were chosen in sizes that are readily available in the industry.

The e-bikes are shipped as Class 2, with throttles, but the throttles can be easily removed to turn the bikes into Class 1. And dealers (but not consumers) will have access to modify them to Class 3 assist levels. A “customer comfort” feature lets users adjust the motors’ top assist speed from 28 mph down to 11 mph if desired, for owners who are uncomfortable with higher speeds.

The sales pitch to retailers includes average margins of about 36%, and a 30% margin for fulfillment of “click-and-collect” e-bike orders. A program allows shops to return grips and saddles that were exchanged during a bike sale for credit, instead of letting them languish in a parts bin. Similarly, a $100 computer display upgrade option will be available, and shops can return the original displays for credit.

How are steel and aluminum tariffs calculated on bikes?

Steve Frothingham — Thu, 09 Oct 2025 20:50:03 +0000

TL;DR: They would add a ton of costs (Also: Get a good customs broker).

(BRAIN) — There are as many ways to calculate Section 232 tariffs on imported steel and aluminum as there are companies importing products containing those common materials. But most bike importers tell BRAIN that if bikes and e-bikes become subject to the tariffs, it will add hundreds of dollars to the cost of bikes at wholesale, and even more at retail.

Some bike products, including e-bikes, chains, exercise bikes/trainers and some hand tools are already subject to Section 232 tariffs. The chains and tools were added in March; e-bikes and trainers were added in August.

Now, Guardian Bikes and an aluminum extruder trade group have requested that all bikes, bike frames and some e-bikes be added to the derivative lists for both Section 232 steel and aluminum tariffs. If added, these new tariffs would apply to imports from all countries.

PeopleForBikes said such a move would be “crushing” to the industry and is urging industry members to leave comments in opposition on a Department of Commerce website.

Since the first list of derivatives was released this spring, importers have struggled to understand how to apply them.

An aggressive approach, which some importers have taken, is to assume that the Section 232 tariffs were intended to apply to the raw value of the materials in the product. That makes the cost relatively small because even an e-bike with an import value of $1,000 might contain only 40 pounds of raw steel, valued at perhaps 50 cents per pound, for a Section 232 tariff cost of less than $10 (not counting other tariffs — more on that lower down).

Wouldn't it be pretty to think so? But most companies take a far more conservative approach, which is why the requested tariff increases this week have importers extremely concerned.

The more conservative approach is to apply the 50% tariff to the importer’s price paid for each of a bike's steel or aluminum components.

Other than bikes with carbon or titanium frames, more than 90% of the value of most bikes and e-bikes is steel or aluminum — just about everything except the tires, inner tubes, saddles and grips.

The conservative approach is to add up the cost of each component — say a steel cassette that cost the bike brand $11. A frame that cost $100. A handlebar that cost $4. In the end, a bike valued at $1,000 at import might contain steel and aluminum components worth over $900. So a 50% Section 232 tariff would add $450 to the tariffs on that bike.

“I was told second-hand by a supplier that there's one or two brands in the industry that are saying, 'oh, yeah, we hired a lawyer and they looked into it, and we're only adding about five bucks a bike.’ I would caution brands to be very careful about making that kind of claim,” said one importer who takes the more conservative approach.

“I'm going with the understanding I have and avoiding risk to my company as best I can,” the importer said. (He said his company doesn't count tiny steel parts like water bottle bolts and reflector brackets. "There's a limit," he said.)

PeopleForBikes policy counsel Matt Moore told BRAIN that the “valuation of merchandise for customs purposes is a complicated area.”

But Moore said a Customs and Border Protection FAQ page is clear about how to value steel products.

“It’s the ‘price paid’ for the steel content in the form purchased," Moore told BRAIN, paraphrasing the FAQ. "Not the price of the raw material farther up the supply chain.”

Stacking costs.

Since the first Trump administration imposed Section 301 tariffs of up to 25% on Chinese imports, industry experts have been quick to note that these tariffs “stack” on top of pre-existing tariffs, instead of substituting for them.

The second Trump administration has added more varieties of tariffs and most continue to stack, but there are some exceptions. Importers say the exceptions are subject to change and often hard to determine. The differences can amount to hundreds of dollars on the landed costs of even a modest bike, or hundreds of thousands of dollars on a container load of them.

It’s fairly certain that, if imposed, the steel and aluminum tariffs requested this week would stack on top of most existing tariffs, including the long-standing MFN duties of 5.5-11% on bikes, Section 301 tariffs on Chinese imports of up to 25%, and the so-called fentanyl tariff on Chinese goods of 20%.

But there is some uncertainty about whether the new Section 232 tariffs, if imposed, would stack on the administration’s “reciprocal” tariffs, which range from 10-50% depending on the country of origin (Reciprocal and fentanyl tariffs are each imposed under the International Emergency Economic Powers Act (IEEPA)).

According to another CBP FAQ, reciprocal tariffs do NOT stack on top of Section 232 steel and aluminum tariffs. Instead, the FAQ suggests that a product's steel and aluminum content would be subject to the Section 232 tariff while only the product’s non-steel or aluminum content would get hit with the reciprocal.

Other industry sources interpret the stacking rules differently and believe both the reciprocal and Section 232 steel and aluminum tariffs would apply fully.

The differences add up.

In the example of a non-electric bike from China valued at $1,000, the total tariff burden might be:

$450 Section 232 on steel or aluminum content (50% of $900 value)
$10 Reciprocal (10% IEEPA) on the non-steel or aluminum content
$250 Section 301 (25% applied to $1,000)
$200 fentanyl (20% IEEPA applied to $1,000)
$110 MFN (duty of 11% applied to $1,000).

For a total tariff of $1,020 in tariffs, or an effective rate of 102%.

If the reciprocal tariff stacked on the 232, the total on a Chinese non-electric bike would look like this:

$450 Section 232 steel or aluminum content (50% of the $900 value).
$100 Reciprocal (10% IEEPA applied to $1,000).
$250 Section 301 (25% applied to $1,000).
$200 fentanyl (20% IEEPA applied to $1,000).
$110 MFN (duty of 11% applied to $1,000).

For a total of $1,120, or an effective tariff rate of 112%

The same bike from Taiwan is not subject the Section 301 or fentanyl tariffs. So the non-stacking costs would be:

$450 Section 232 steel or aluminum content (50% applied to the $900 value).
$20 Reciprocal (IEEPA) rate applied to the remaining $100 of non-steel or aluminum content.
$110 MFN duty of 11% applied to the $1,000 value.

For a total of $570, or an effective tariff of 57%.

If the Section 301 and reciprocal tariffs stack, the Taiwanese bike's tariffs would be:

$450 Section 232 steel or aluminum (50% of the $900 value).
$200 Reciprocal (IEEPA) 20% applied to $1,000.
$110 MFN duty of 11% applied to $1,000.

The total: $760, or 76% effective tariff.

Bottom line: Whether the Section 232 tariffs stack or not, they add up to hundreds of additional dollars on the importer’s landed costs, which equates to even more added to wholesale and retail costs.

No drawbacks.

In another twist, the Section 232 tariffs paid are not eligible for drawback, meaning if an importer re-ships a product to another nation, they would not be able to recover the Section 232 tariffs paid, the way they can recover other tariffs paid. This adds costs for importers who service other countries from a U.S. warehouse.

PeopleForBikes urges industry action as Guardian calls for ‘crushing’ new tariffs

Steve Frothingham — Thu, 09 Oct 2025 00:34:45 +0000

BOULDER, Colo. (BRAIN) — Trade group PeopleForBikes is calling on its members to respond — quickly — to public requests from the domestic manufacturer Guardian Bikes and an aluminum trade group for steeper tariffs on imported bikes and e-bikes.

Guardian, which builds juvenile bikes at an Indiana factory and sells direct to consumers, has filed a public comment with the Bureau of Industry and Security at the Department of Commerce, requesting that the aluminum and steel content of all bicycles, frames and e-bikes imported into the U.S., from any country, be added to a list of items subject to a 50% tariff.

Guardian said reshoring bicycle and bicycle-frame manufacturing would eliminate over 200 million pounds of steel imports and 40 million pounds of aluminum imports.

"The domestic manufacturing sector holds untapped potential to support high-volume bicycle production," the company said.

"A scaled domestic supply chain for bicycles will spur demand for domestic steel and aluminum, as well as metal fabrication, welding, tool and die making skills necessary for reindustrializing the nation. Many existing machine shops and component suppliers currently serving the U.S. automotive industry are well-positioned to transition into manufacturing precision high-volume metal fabrication, welding, and component production could be leveraged to rapidly scale domestic bicycle component manufacturing," Guardian said in its comment to the BIS.

Currently, bikes and frames are not included on lists of “derivative” products subject to steel and aluminum tariffs, although some bike products, including steel chains, steel e-bikes and steel exercise equipment, including bike trainers, are on lists of derivatives subject to the material tariffs. Adding complete bikes, frames and e-bikes to the list of derivatives would make the value of the steel and aluminum content of the bikes subject to the tariffs.

Bikes, frames and e-bikes already are subject to the Trump administration’s "reciprocal" tariffs, which vary by nation, and long-standing duties. Bikes and frames from China also are subject to other tariffs, including Section 301 tariffs of up to 25%.

"We need your help if we are to have a reasonable chance of stopping these new, crushing tariffs.” — PeopleForBikes

The Aluminum Extruders Council, a trade group, left a comment with the BIS that included bikes, frames and e-bikes on a list of items it is requesting the BIS add to its derivative list. No other comments regarding bikes are currently posted.

PeopleForBikes is urging members to file comments with the BIS in opposition to the requests by Guardian and the Extruders Council.

“Our only opportunity to oppose these requested tariffs will end on October 21st when the two-week comment period closes,” the organization told members in an email on Wednesday. “PeopleForBikes will submit comments in opposition to these two requests and work with allies to do the same, but we need your help if we are to have a reasonable chance of stopping these new, crushing tariffs.”

PeopleForBikes has created a template and talking points for industry comments and has instructions on leaving comments on its website. The National Bicycle Dealers Association also shared the PeopleForBikes resources with its members in an email Thursday morning.

PeopleForBikes has supported federal legislation that would assist domestic bike assembly and manufacturing by reducing tariffs on components. Guardian has not shown support for that legislation.

Guardian’s history

Guardian was founded in 2013. Co-founder and CEO Brian Riley previously marketed the SureStop safety brake, intended to prevent front wheel lockups (The product was initially marketed under the SlidePad brand). The brake was offered as an original equipment product and spec’d by brands including Jamis and REI’s Novara. Later, citing a lack of interest in the brakes from major bike brands, Riley founded his own bike brand that spec'd the brakes exclusively. Guardian initially sold bikes through specialty dealers, but later shifted to a consumer-direct model.

In 2017, Guardian appeared on Shark Tank and Mark Cuban invested a reported $500,000. Cuban invested another $3 million in 2022.

This spring Guardian announced it had secured a $19 million credit facility with JPMorganChase to expand its Indiana factory. The factory initially has been assembling bikes with a mix of domestic and imported components. However Guardian announced on social media this week that it had begun frame production at the plant.

Guardian has said it produces 2,000 bikes a day with plans to make a half million bikes this year. Sales are estimated at $140 million. Its offerings range from $150 balance bikes up to 26-inch wheeled juvenile bikes that sell for $369.

Through a corporate representative, Riley has declined several requests for an interview from BRAIN since the financing announcement last spring.

In May Riley gave a speech to the Senate Committee on Small Business and Entrepreneurship in which he suggested the U.S. impose a $150 flat tariff on all bike imports. “A modestly protective tariff of $150 per bicycle would have the effect of reshoring most mass-market bicycle production while not materially affecting high-performance, limited-production imported bicycles,” he told the committee.

Note: Public comments regarding the steel and aluminum tariffs on the Department of Commerce site are at this link. PeopleForBikes urged that industry members respond to the Aluminum Extruders Council comment and the Guardian Bikes comment with information about their business, followed by arguments specific to that request. PeopleForBikes has created a template letter for brands to fill out and a talking points document to help those opposed to the tariffs to fill out the template.

File Attachment:

Guardian Bikes public comment PDF

Aluminum Extruders Council public comment PDF

Blaupunkt plans North Carolina e-bike assembly

Steve Frothingham — Thu, 25 Sep 2025 21:54:21 +0000

(BRAIN) — Blaupunkt, the car audio brand that began selling folding e-bikes in 2018, plans to move its e-bike assembly for the U.S. market from Paraguay to Western North Carolina.

Blaupunkt's cast magnesium frames will continue to be made in Malaysia or China, Brian Tedesco, the president of Blaupunkt Americas, told BRAIN in an email this week.

Brands including California's Electric Bike Company currently finish and assemble e-bikes in the U.S., and eBliss plans to begin U.S. assembly in New York this year. Boutique e-MTB brands including Pivot, Yeti and Santa Cruz also assemble bikes and e-bikes in the U.S. But Tedesco said Blaupunkt will become the first "major" e-bike brand to begin U.S. assembly.

"It’s a risk to go first, but we believe in the American worker, and we plan to hire 60–80 production line employees over time. The new facility will be designed to produce up to 250,000 UL 2849-certified Blaupunkt foldable e-bikes per year," he said.

He said Blaupunkt's factory will be in Western North Carolina, near Asheville. Relocation from Paraguay is underway, with the start of production targeted for the first quarter of 2026.

"This new facility will be set up with the support of our Paraguay factory, which will continue to play a critical role in both launch and daily operations," Tedesco said. Initially the factory will not do frame finishing or painting, but Tedesco said that will be added soon. "That's not a heavy lift," he said.

"We are replicating the same state-of-the-art processes we established in Paraguay — ISO standards, UL 2849 certification, and disciplined quality control. Just as our 2022 decision to manufacture in the Americas (via Paraguay) was a long-term play, this next step reflects the same philosophy: If you want the privilege of selling to U.S. dealers, you should produce as close to home as possible. Paraguay was the nearshore foundation. Now it’s time to onshore," he said.

Tedesco participated in a PeopleForBikes-organized domestic manufacturing tour of the Carolinas last month. He said Blaupunkt supports H.R. 3904, the U.S. Bicycle Production and Assembly Act, which PeopleForBikes is supporting. The bill would support domestic bike assembly and manufacturing.

Shipping container seizure in EU includes thousands of undervalued e-bikes

DeanYobbi — Thu, 18 Sep 2025 20:40:59 +0000

ATHENS, Greece (BRAIN) — The seizure of 2,435 shipping containers here valued at least 250 million euros ($294.4 million) — including at least 500 filled with e-bikes — led to the European Public Prosecutor's Office (EPPO) charging six people including two customs officers for importing Chinese goods into the EU market and evading customs duties and value-added tax.

Of the 500 e-bike containers discovered in June at the port of Piraeus, 360 had not been declared to customs, and according to the EPPO, they would have been either not declared or undervalued to avoid anti-dumping duty payments. A total of 7,133 e-bikes and 3,696 e-scooters were secured.

"On average, only 10% to 15% of the actual number of e-bikes in a container were declared," according to the EPPO. "The damage to the EU budget for these e-bikes alone is conservatively estimated at 25 million euros in unpaid customs duties and 12.5 million euros in VAT losses."

It's also a reminder that the tariff increases can lead to customs fraud including undervaluing that would affect U.S.-based wholesalers, distributors, and retailers. Pat Cunnane, a business consultant and former CEO of Advanced Sports Enterprises, said the EU news should serve as a cautionary tale. Cunnane is active in trade issues and has been for the past 35 years and has testified on trade issues.

"There's a great risk in cheating, and people need to understand the risk," Cunnane told BRAIN and added that the consequences are back-tariff payments, fines, and criminal prosecution.

Bob Margevicius, senior advisor to Specialized Bicycles, agreed.

"It should serve as a warning to keep market order from both circumvention, mismarking, and also customs undervaluing products coming into the USA."

To illustrate his point, Margevicius cited a U.S. Customs notice in August about the creation of a cross-agency Trade Fraud Task Force to enforce importers who seek to dodge tariffs and other duties as well as bringing in prohibited goods.

The EPPO investigation code-named Calypso uncovered the fraudulent import network. In addition to e-bikes and e-scooters, other goods included textiles and shoes. Authorities said the scheme is believed to have caused estimated damages of about 700 million euros.

Calypso involved 14 countries: Bulgaria, China, Czechia, Denmark, France, Germany, Greece, Hungary, Italy, Poland, Portugal, Slovakia, Slovenia, and Spain. Chinese nationals mainly control the import networks, the EPPO said, adding they are also involved in money laundering and sending profits back to China.

"The EU is much more tough than customs in the USA," Margevicius said. "The way these investigations happen is that someone tips off customs. In this instance, they were working together. For sure Calypso is a huge operator with lots of financial leverage to navigate.

"I do think they will discover lots of counterfeits and other products which do not meet regulatory provisions or violate IP. Likely, there are other similar businesses in Europe, so this may be a shot across the bow."

According to the EPPO, only some of the containers have been inspected by Greek customs officials.

The two customs officers have been charged with repeated false certification, causing unlawful gains and damage to the EU budget of more than 871,000 euros, and with abetting customs fraud. Also, four customs brokers have been charged with repeated customs fraud, involving more than 871,000 euros in evaded duties and taxes, as well as with inciting false certification.

"It's very difficult to stop companies from cheating," Cunnane said. "Europe has done a much better job for a long time in enforcing trade policies."

Threatened tariffs caused spike in Chinese bike imports in July

Steve Frothingham — Fri, 05 Sep 2025 00:00:25 +0000

WASHINGTON (BRAIN) — In July the U.S. imported bikes worth 5.3% more than in June, an increase that closely matches the 5.9% month-on-month increase for the entire U.S. economy, the Commerce Department reported Thursday.

The most dramatic increase was from China. After a decline in Chinese bike imports in June, the industry made a sudden 128% increase in July, likely in a bid to get ahead of a triple-digit tariff that was expected to take effect in early August, but which the Trump administration delayed at the last minute.

Even with the monthly increase, Chinese imports were well below last year's levels, as the chart below shows:

Cambodia passed China to become the U.S.’s largest source for bikes, by value, in the first half, and that trend accelerated through July. July bike imports from China were valued at $17.7 million, while imports from Cambodia were valued at $32.6 million, up 19% from June.

Cambodia produces more high-value adult bikes than China, so China still leads the way in the number of bikes exported to the U.S. with 3.3 million units through July, compared to 889,000 units from Cambodia.

July imports from Taiwan, Vietnam and India were down from June, with the increases from China and Cambodia accounting for most of the 5.9% bump. (See related story on Indian bike imports.)

Delay left significant tariffs in place

The July import spike was likely inspired by the Trump administration's threat to impose a “reciprocal” tariff on Chinese goods of as much as 145% — in addition to other tariffs — on Aug. 7. Hours before that deadline, the U.S. and China agreed to a 90-day delay.

But while the threatened triple-digit reciprocal tariff would have been devastating, most Chinese bike imports are still subject to a 25% Section 301 tariff, a 20% IEEPA tariff related to fentanyl, and a 10% reciprocal tariff, plus long-standing duties on most bikes of 5.5-11%. The total is about 66% on regular bikes and 55% on e-bikes from China.

Plus, in August e-bikes, some tools and indoor trainers were added to the list of steel derivative products subject to a steel tariff. The steel tariff is 50% from every country except the United Kingdom, whose steel exports to the U.S. get a 25% tariff.

Year-over-year shows decline

While the Commerce Department releases seasonally adjusted figures for goods and services and focuses on the month-on-month changes, the bike industry more typically looks at year-over-year, non-seasonally adjusted figures. By those measures, bicycle imports totaled $84 million in Customs value in July, down 10% from the same month in 2024. For the year-to-date through July, bike imports were $530 million, down 11% from the same period in 2024. The figures do not include e-bikes.

Looking at the number of bikes imported, the U.S. imported 4.87 million units in the first seven months of the year, for an average Customs value of $108.69 per bike. Last year during the same period the U.S. imported 6.30 million bikes, for an average Customs value of $94.46. (Customs value is the figure used for assessing duties and includes the price of the goods plus other costs like shipping and insurance.)

Monthly imports of bikes from China.