Cycling is an expensive sport, and the cost of buying a new bike could soon go up because of pending government regulations.
The U.S. Trade Representative (USTR) office recently announced that tariffs (fees) charged on select products imported from China would be suspended for an additional year. However, some of the 429 products that boast this benefit will soon be excluded from the tariff exclusion list.
“After a thorough review of the statutory report on Section 301 tariffs, and having considered my advice, President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China’s unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses,” explained Katherine Tai, U.S. Trade Representative according to a USTR press review.
Tai’s comments followed the release of a statutory Section 301 four-year review that looked at everything from the effectiveness of tariffs to the effect on the U.S. economy. During this time, tariff extensions that were set to expire on May 31, 2024, were instead extended through June 14.
After midnight on the 14th, tariffs will increase by 25% on water packs, single-speed bicycles, e-bikes, children’s bicycles, and carbon fiber bicycle frames ‘valued not over $600 each.’ Next June, bike accessories, including bicycle trailers and helmets, will also receive a 25% tariff increase according to Annex C of the Notice of Extension of Certain Exclusions. These increases are in addition to any base tariffs imposed on these products.
Though not explicitly noted in Annex C, e-bike batteries will also face tariff increases. According to Wired, “ebike batteries imported from China on their own will be subject to new tariffs of 25 percent in 2026, up from 7.5 percent.”
As a result of the Section 301 announcement PeopleForBikes–a bike advocacy group–contends that “Sudden tariff increases of 25-100% dramatically depress the economic success of the bike industry…[and] function no differently than changes to other cost inputs or taxes.”
With China dominating the bike import market by 80%, according to one report, if bike advocates and legislators are unable to convince the USTR to reverse course, it’s only a matter of time before new bike buyers experience sticker shock at brick-and-mortar or online retailers.
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