What precisely constitutes an electric vehicle? China has also been a dominant force in bicycle production; in 2021, it accounted for about 80 percent of bicycle imports received by the US, as stated in a published report. The US’s recent trade strategies have raised concerns within cycling communities about the potential additional costs involved in importing Chinese-manufactured bicycles and components into the US, and whether these expenses will eventually be transferred to US consumers.
The Office of the United States Trade Representative, the entity responsible for shaping trade policies in the US, has now clarified that the new policy will also encompass ebike batteries.
A statement from Angela Perez, a representative of the USTR, disclosed that standalone ebike batteries brought in from China will now be subjected to increased tariffs of 25 percent by 2026, up from the previous 7.5 percent.
The impact of the new US trade policies on fully assembled ebikes, as well as other bicycle-related products which include children’s bicycles and bicycle trailers, remains uncertain. While these products have been theoretically subjected to a 25 percent tariff since the Trump administration, US trade officials have consistently issued exemptions to waive tariffs for many bicycle products. The most recent round of exemptions is set to expire at the conclusion of this month.
Perez, the USTR representative, mentioned that the issue of tariff exemptions concerning bicycles will be “discussed in the imminent days.”
Should the administration choose not to elongate tariff exemptions for specific Chinese-manufactured bicycle goods, it could impede the adoption of ebikes, as asserted by Matt Moore, the head of policy at the cycling advocacy group PeopleForBikes. After the introduction of supplemental tariffs on Chinese goods earlier this month, PeopleForBikes encouraged its members to engage with local representatives and campaign for an extension of the tariff exemptions. According to the organization, tariff exclusions have collectively saved the bicycle industry over $130 million since 2018. Determining the exact savings for bicycle purchasers is challenging; however, Moore suggests that businesses facing higher “landed costs”—i.e., the expenses incurred from factory production to delivery to the customer’s doorstep—tend to escalate prices to safeguard their profit margins.
This tariff dilemma comes at a time when the US is witnessing a burgeoning interest in electric bicycles. US sales of ebikes soared to $903 million in 2022 from $240 million reported in 2019, according to Circana’s Retail Tracking Service data. The surge in sales was prompted by Americans seeking physically active pursuits and seizing the opportunity of deserted streets during the pandemic era. While ebike sales waned in the past year, they have rebounded by 4 percent since the commencement of 2024, as outlined by Circana.
In the US, environmentally conscious state and local governments are now seriously contemplating subsidies for electric bicycles, similarly to their support for electric automobiles. States such as Colorado and Hawaii provide rebates to eligible residents. Programs offering ebike rebates in Denver and Connecticut garnered considerable popularity among cyclists, resulting in depletion of funds within a few days.
A study published last year by researchers from the University of California, Davis suggests that such programs could yield positive results. The study found that individuals who utilized local and state rebate schemes to purchase ebikes reported an increase in their biking activity post-purchase. Nearly 40 percent of respondents indicated that they had substituted at least one weekly car trip with an ebike in the long term—a transition that could notably reduce carbon emissions.