E-bikes in the USA may soon see a significant price hike due to impending changes in import tariffs on Chinese-produced parts. Importers are set to face increased costs as an exclusion from tariffs imposed on Chinese imports, including e-bikes, carbon fiber frames, and children’s bikes, is set to expire on June 14. This means importers will be subject to an additional 25% duty on top of existing tariffs, potentially leading to higher prices for consumers.
The recent announcement by the Biden administration regarding new tariffs on imported goods from China, including electric vehicles, raised questions about its impact on the e-bike market. Now, reports from Bicycle Retailer and Industry News indicate that e-bikes, children’s bikes, and select carbon fiber frames will face a 25% increase in existing tariffs, marking a significant change.
Until June 14, these products enjoyed an exemption from the Section 301 tariff, introduced in 2018 to address competition between US and Chinese producers. However, the exemption, which has been extended multiple times in recent years, will not be renewed this time under the Biden administration.
While this change may benefit domestic e-bike producers by leveling the playing field with foreign imports, the majority of e-bikes are manufactured at least partially in China. This shift will likely strain margins for US retailers and brands that rely on Chinese-imported goods, ultimately leading to higher prices for consumers.
Furthermore, the adjustment may impact the online market for Chinese frames and bikes, where many cyclists purchase directly from Chinese sellers. Previously exempt from import costs, these products may now come with additional tariffs upon entry into the country.
Cycling advocacy group PeopleForBikes has urged the US Government to renew the exemption, citing concerns about sudden tariff increases negatively affecting the bike industry’s economic success. They argue that such exclusions have saved the industry over $130 million since 2018 and advocate for policies that promote a more predictable and supportive trade environment in Washington, D.C.