The New US Tariff Policy Impacts The Global Bicycle Industry

The impact of the new tariff policy released on April 2nd on the bicycle market.

On April 2, the U.S. government announced "reciprocal tariffs," imposing a 54% combined duty (including an additional 34% on top of existing 20% tariffs) on Chinese bicycles and components, while EU products face a 20% levy. This move directly threatens the bicycle industry, which relies heavily on globalized supply chains. Data shows that 77% of e-bikes in the U.S. market depend on Chinese supply chains (50% from mainland China, 27% from Taiwan), while European brands, though accounting for 20%, still largely source their frames and key components from China.

U.S. "country of origin" rules classify bikes based on frame sourcing, meaning even those assembled in the U.S. or Europe with Chinese frames could be hit by tariffs.

European brands exporting to the U.S. face a double whammy: potential 25% EU retaliatory tariffs on U.S.-bound goods plus the new 20% U.S. duty, making their products less competitive.

Although Vietnam and Cambodia are considered alternative production areas by some brands, their products face a tax rate of 46% -49% under the new tariffs, and the local industrial chain is not mature enough , making it difficult to form a cost advantage in the short term.

The proportion of domestic assembly in the United States is only 3%, lacking economies of scale. Expansion faces challenges such as high labor costs and a lack of supply chain support.

This tariff storm is impacting the global bicycle industry landscape. The impact of tariffs on the supply chain will bring short-term pains: rising costs, price fluctuations, and market differentiation. But in the crisis, there are also opportunities for transformation - the acceleration of regional production layout and the urgent need for innovation in business models.