US Gov suspends 25% China trade tariff on select bicycle products

A 25% trade tariff on a variety of bicycles and accessories imported into the USA, from China, has been paused, ensuring the products are excluded from the import duty.

Bloomberg reports, “the U.S. Trade Representative’s office is reinstating the exclusions for 352 items, it said in a statement on Wednesday.” The report further highlights, “…exemptions from Trump-era tariffs on Chinese products that were previously granted waivers, most of which expired by the end of 2020.”

Bicycle Retailer and Industry News quotes industry reactions to the news:

Mike O’Gara, a senior vice president at Huffy Corp., speaking at PeopleForBikes’ Bicycle Leadership Conference: “The tariff gift couldn’t have come at a better time for us”.

Specialized Bicycles’ executive vice president, Bob Margevicius: “That is amazing news.”

The PeopleForBikes report highlights the impact of the exclusion from the 25% tariff:

“The exclusions will be in effect for products imported between Oct. 12, 2021 and Dec. 31, 2022. We estimate these exclusions cover products worth more than $600 million in annual import value. This action could save the bike industry at least $160 million in duty payments, likely more.”

“This announcement is the result of a concerted effort by PeopleForBikes and the bike industry dating back to the beginning of Section 301 tariffs.”

For European businesses, “as it stands, a 48.5% tariff is applied.” This has, in part, seen a boom in reshoring production, with Spain, Portugal, Romania and Poland, amongst a number of other EU based locations.

2020 data released by Eurostat detailing EU bicycle production has perched Portugal as the leading European supplier, responsible for the manufacture of 2.7 million units in 2019, gaining over 700,000 units year-on-year.

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