Cheaper eBikes incoming: UK breaks with EU + cuts levies on non-folding China eBikes

In a landmark move, the Secretary of State for Business and Trade has accepted the TRA’s recommendation to revoke anti-dumping and countervailing measures on imports of non-folding China eBikes to the UK.

Non-folding eBikes constitute around 95% of the UK’s total eBikes market, a concession to the likes of Brompton, Estarli and others who build folding eBikes on UK soil.

The big move constitutes a big break with the EU – perhaps the first time the UK has done so since Brexit. Just weeks ago, the European Commission decided to add another five years to anti-dumping duties on China eBikes.

Anti-dumping and countervailing measures on eBikes imported from China, both folding and non-folding, endured when the UK left the EU like a number of laws and measures. Last year, the TRA recommended that these particular tariffs be axed. The current anti-dumping measure is an ad valorem tariff of 10.3% to 70.1%, while the current countervailing measure is an ad valorem tariff of 3.9% to 17.2%.

The TRA found that consumers will save, on average, £200 as a result of being able to purchase cheaper eBikes.

The measures will come into force from 7 February 2025.

The TRA judged that maintaining current tariffs on China eBikes “would not be in the economic interest of the UK”.

In response to the move, the Bicycle Association has passed CIN this comment: “This is a significant decision and it may take some time for the implications for the UK cycle industry and its supply chains to become clear. In any case the Bicycle Association will continue to support its member companies to navigate the complex regulations around these trade defence measures. We have for example already requested official clarification of the precise definition which Customs will be using to identify “folding eBikes”, which are still subject to these measures.”

More change on the way?

For those alarmed by the change, there’s more potential upset on the way as the TRA has not only been looking at China eBike tariffs. Last year, it began investigation on bicycles and certain bike parts, namely: Category 1 goods (bicycles – including delivery tricycles, not motorised) and Category 2 goods (certain bicycle parts), in quantities of 300 or more units per month (per type). That includes: “brake levers coaster braking hubs complete wheels with or without tubes, tyres and sprockets crank-gear derailleur gears frames (painted, anodised, polished or lacquered) free-wheel sprocket-wheels front forks (painted, anodised, polished or lacquered) handlebars hub brakes”. That investigation is due to end in summer 2025.

Will the UK’s independent bike retailers, importers and suppliers benefit from the government’s move?

More to follow.