TRA recommends scrapping eBike tariffs to cut UK eBike prices
eBike prices could be cut by an average of £260 per bike and sales could be boosted by 31,000 units annually if recommendations by the Trade Remedies Authority (TRA) are carried out by the UK government.
The TRA has published its initial findings on an investigation on anti-dumping on eBikes (electric bikes) from China and have found in favour of revoking existing tariffs.
Previously, trade remedy investigations were carried out by the EU Commission on the UK’s behalf. The TRA was established in 2021 in the wake of the UK’s exit from the European Union, working through existing EU-initiated tariffs to gauge their impact on the UK’s economy.
CIN understands that TRA’s recommendation to revoke anti-dumping measures on eBikes is relatively unusual among other anti-dumping measures that are set to remain in place for other products.
The TRA believes that cutting eBike tariffs on China eBike imports could benefit the UK economy to the tune of £51 million a year, on average. Existing tariffs on eBikes imported from China range from 18.8% to 79.3%, transitioned when the UK left the EU.
According to the TRA, sales of eBikes in the UK reached an estimated £325 million in 2023, compared with £96 million in 2018, and are expected to grow further in the coming years. It added: “Although it is likely that dumping and subsidisation of Chinese eBikes would likely recur if the measures were no longer applied and that the UK production industry would suffer some injury, it was found that this injury did not outweigh the benefits to the UK economy or consumers if the measures were revoked.”
TRA Chief Executive Oliver Griffiths said: “We always assess the impact of a trade remedy measure on the UK economy. Our interim conclusion is that the benefits to UK bicycle producers from continuing the current measures on eBikes would be significantly outweighed by harm to the rest of the economy. We project that removing the measures could save consumers around £260 per eBike and could benefit the UK economy by around £51 million annually.”
eBike tariffs & a third way: Anti-dumping in place for folding eBikes only?
The TRA noted that there’s an alternative to simply switching off the anti-dumping levies on China’s eBikes, noting that UK producers are more heavily concentrated on the folding eBike market. It suggested that anti-dumping could be solely applied to folding eBikes from China, which presumably would be better news for the likes of Brompton, the UK’s largest bicycle manufacturer, with a product range including folding eBikes as well as its famous folding bicycles.
There could be other options available to the Secretary of State for Business and Trade alternative options to revoking the measures and a period of consultation is now open for on all of the options presented, after which the TRA will make recommendation to the Secretary of State.
The TRA – for the first time – conducted a consumer survey as part of its assessment of how measures on these imports would affect the overall UK economy. The survey targeted eBike customers and helped the TRA assess consumer sensitivity to eBike prices. Bike prices have – doubtless – been another contentious talking point for the industry lately. There’s more on that here.
Lest we forget that headlines about eBikes and legislation have not been thin on the ground of late. The government – which just called a General Election for this summer – announced a consultation on eBike regulations. eBike battery regulations have also been under the microscope in light of eBike fires – usually linked to eBike conversion kits bought from less regulated marketplaces. The nation’s legislators are clearly attempting to get to grips with the growing eBike phenomenon. This latest anti-dumping proposal could have a big impact on a market that has been struggling with tight consumer finances.
CIN’s own research over many years has established the key and consistent role that the UK’s independent bicycle dealers have played in championing eBikes in the UK, so developments here could be significant for bike shop fortunes. Even more broadly speaking, the eBike sector is clearly gaining share of the UK cycle market, so the impact of revoking eBike tariffs or opting for that third option could be pretty significant for the trade.
Businesses that may be affected by the reviews (such as importers or exporters of the products or UK producers of similar products) can now comment on the initial findings via the TRA’s online case platform. They can also stay up to date with developments in each case, which will be posted on the TRA’s public files.
SIDE NOTE: Anti-dumping levies are often contentious not least in the EU where the debate on the extra taxes on China imported eBikes is being raised by an Ad-Hoc Group with LEVA-EU’s involvement.
