On February 18, the Trump administration published Federal Register notices regarding the revised Section 232 tariffs on steel and aluminum imports from all countries. The unofficial, unpublished steel and aluminum tariff notices are currently available. These notices implement the administration's executive orders on the two tariff actions. Each notice includes an Annex listing all Harmonized Tariff Schedule of the United States (HTSUS) tariff codes for articles and derivative articles of steel and aluminum subject to these tariffs. 

Members of the bike industry are advised to review the listings to determine whether any goods they import may soon be subject to additional tariffs when they go into effect on March 12, 2025.  Tariff collections on derivative articles will not begin until the Secretary of Commerce provides “public notification” that adequate systems are in place to collect the duties on these articles.

The good news for the bicycle industry: The primary HTSUS chapters for bicycles, electric bicycles, frames, forks, and bicycle components (8711, 8712, and 8714) are NOT listed in the Annex for steel or aluminum. Absent any further actions by the Administration, these products will not be subject to the additional 25% tariffs (but remain subject to all other tariffs, including applicable Section 301 tariffs).  

The bad news: Imported steel and aluminum used by domestic manufacturers, including PeopleForBikes member companies, will likely become more expensive. The tariff on the listed aluminum articles is being increased from 10% to 25%, and the revised Section 232 actions also end trade agreements that allowed lower-cost imports of steel and aluminum from some countries (including Canada). Similar to what happened in 2018, domestic metal producers will likely raise their prices to match the increased cost of imported metals due to the tariffs.

As a result of the Section 232 tariff actions, domestic metal producers will gain competitive advantages and higher margins, but domestic product manufacturers will face increased costs for the materials needed to make products and stand to lose even more ground against foreign competitors. The delay in implementing de minimis reform will further exacerbate those market inequities, at least in the short term. The recent announcement of plans for future "fair and reciprocal" tariffs on all goods from all countries could add yet another potentially substantial layer of additional costs to industry supply chains.

As the U.S. bicycle industry’s trade association, PeopleForBikes advocates for pro-bike business policies and regulations at all levels of government. PeopleForBikes remains committed to advancing favorable trade policies on behalf of the bike industry, including retroactive authorization of the Generalized System of Preferences (GSP). This legislation has bipartisan support in Congress and PeopleForBikes will continue supporting its passage. 

As the trade landscape continues to evolve, it is critical that executives and leaders across the bicycle industry work with PeopleForBikes to support outcomes that benefit bicycling and the bike business. If you have questions about the tariffs, or you would like to discuss how to advocate effectively for your business, please contact PeopleForBikes Vice President of Government Relations Dr. Ash Lovell at ash@peopleforbikes.org for more information.

Bikes and E-Bikes Avoid New Steel and Aluminum Tariffs

On Inauguration Day, President Trump issued a Memorandum titled the “America First Trade Policy.” The order directed several federal agencies to undertake comprehensive reviews of U.S. trade policy and all trade agreements as well as investigate adverse actions by other countries. These agencies are to report their findings and recommendations for actions to the president by April 1, 2025. The stated goal of the administration is to enact trade and economic policies “that put the American economy, the American worker, and our national security first.”

On Saturday, February 1, President Trump took the first steps toward this goal by issuing three executive orders imposing new 25% tariffs on all products from Canada and Mexico and a new 10% tariff on Chinese products. Here are the key features of the new tariffs:


The tariffs go into effect at 12:01 a.m. ET on Tuesday, February 4, 2025

The tariffs apply to all goods with a country of origin of Canada, Mexico, or China

There is a limited exception for goods “in transit” before February 1, 2025

The only goods excepted are oil and energy from Canada, which have a 10% tariff

These tariffs are in addition to all tariffs currently in place (including existing Section 301 tariffs on Chinese-origin goods)

Duty drawback cannot be claimed on these additional tariffs (duty cannot be recovered on goods imported into the U.S. and then exported)

The Canadian government outlined retaliatory 25% tariffs on more than $100 billion U.S. goods to be implemented starting February 4. The full list of products covered under the Canadian tariffs can be found here.

Mexico is expected to unveil their tariff response measures on Monday, February 3. 

China also threatened countermeasures including filing a legal case at the World Trade Organization (WTO).

Imports from China, Canada, and Mexico are no longer eligible for de minimis entry into the U.S. as of Tuesday, February 4.

A Federal Register notice will be published by U.S. Customs adding the new tariffs to the Harmonized Tariff Schedule (HTS). It is unclear how the new tariffs on hundreds of thousands of small shipments valued at under $800 that formerly entered under the de minimis exception will be collected.

These tariffs are being imposed under the International Emergency Economic Powers Act (IEPPA) based on Trump’s previous declaration of a national emergency. The new tariffs have no defined end date. Whether or when the tariffs will be reduced, removed, or increased is within the discretion of the president. While Congress could in theory remove the tariffs by joint resolution, that is unlikely.


The president stated that new tariffs on products from the European Union will also be imposed, perhaps as early as February 18.  

As a result of the new administration’s policies, the international trade landscape has become, and will remain, increasingly turbulent. PeopleForBikes recommends that bicycle manufacturers and importers review their supply chains and assess vulnerability to tariffs on imports from Canada, Mexico, and China. Manufacturers should also consider the likelihood that retaliatory tariffs may impact exports to these countries.

As the U.S. bicycle industry’s trade association, PeopleForBikes advocates for pro-bike business policies and regulations at all levels of government. Between 2018 and 2024, PeopleForBikes and our members successfully advocated for numerous exclusions from previous Section 301 tariffs on e-bikes, children’s bicycles, and other products, saving the industry hundreds of millions in duty payments. PeopleForBikes remains committed to advancing favorable trade policies on behalf of the bike industry including retroactive authorization of the Generalized System of Preferences (GSP). This legislation has bipartisan support in Congress and PeopleForBikes will continue supporting its passage. 


With these new tariffs in place, it is critical that executives and leaders across the bicycle industry work with PeopleForBikes to support outcomes that benefit bicycling and the bike business. If you have questions about the tariffs, or if you would like to discuss how to advocate effectively for your business, please contact PeopleForBikes Vice President of Government Relations Dr. Ash Lovell at ash@peopleforbikes.org for more information.

Trump Administration Imposes New Tariffs Affecting the Bike Industry

UPDATE: Unfortunately, recent trade actions by the federal government leave little good trade news for the bicycle industry. On Friday, May 24, 2024, the U.S. Trade Representative (USTR) announced the fate of the Section 301 tariff exclusions scheduled to expire on May 31. All exclusions are briefly extended to midnight of June 14, 2024, as a “transition period.”


Exclusions for bicycle trailers and some bicycle helmets are extended to June 1, 2025. These exclusions are listed under Annex C in the USTR announcement. These exclusions are listed under Annex D of the announcement and include all HTS codes for children’s bicycles, electric bicycles, certain carbon fiber frames, and water packs. After June 14, these products will be subject to a 25% Section 301 tariff in addition to any base tariffs.

As the U.S. bicycle industry’s trade association, PeopleForBikes is dedicated to promoting pro-bike trade policies that support bike businesses, keep Americans riding, and make bikes and bicycle products more accessible for everyone. We’re optimistic that the recent movement on trade policy in Congress (outlined below) will lead to a safer, stronger, and more robust future for the bike industry and bike riders nationwide thanks to the advocacy of our Coalition members and the leadership of champions on Capitol Hill. 

We’re optimistic that recent movement on trade policy in Congress (outlined below) will lead to a safer, stronger, and more robust future for the bike industry and bike riders nationwide thanks to the advocacy of our Coalition members and the leadership of champions on Capitol Hill.

Every major action on tariffs affects the bicycle industry. PeopleForBikes actively pushes for tariff exclusions, beneficial trade program renewals, and other policy reforms that create a more predictable and supportive culture of trade policy in Washington, D.C. We are proud to share our vision for U.S. trade policy with our members, policymakers, and partners in our new 2024 Trade Policy Agenda.


Read PeopleForBikes’ 2024 Trade Agenda 

Domestic trade policy for bicycles, electric bicycles, and bicycle products should support seven key principles to provide economic, environmental, and health benefits for Americans. These policies should:

Create Certainty: Fluctuations in U.S. trade policy limit investments in the future of the bike industry and harm consumers. Trade policies should foster stability so U.S. bike companies can plan their supply chains, align production with demand, invest in business expansion, hire new employees, and increase wages.

Provide a Fair Playing Field: Sudden tariff increases of 25-100% dramatically depress the economic success of the bike industry. Duties function no differently than changes to other cost inputs or taxes. When they increase, the companies paying those duties are less profitable. These cost increases unfairly select winners and losers and threaten the free market. 

Promote Domestic Economic Growth: Participation trends for the U.S. bicycle industry are strong and sales of electric bicycles are rising. Sound trade policy can promote that growth and the onshoring of bicycle assembly and production even further. Our economic policies should encourage and enable bike companies to invest more in U.S. bicycle production and support the thousands of small businesses — American bicycle dealers — serving our communities. Trade policies that unfairly favor foreign-based manufacturers and online retailers must end.

Leverage Opportunities to Achieve Climate Change Goals: Bicycling provides one of the most efficient solutions to reducing carbon emissions from the transportation sector. Our trade and tax policies should recognize the potential of the bike to help achieve these goals.


Improve Public Health: Bicycling will not only help achieve environmental objectives, but also make Americans happier and healthier in the process. U.S. trade policy should align with national efforts to improve mental and physical well-being and reduce rising healthcare costs.

Increase Youth Participation: Young bike riders represent the future of the U.S. bike industry. Children’s bicycles and critical safety equipment must remain available and affordable for the long-term stability of the bike industry.

Encourage Investments in Developing Countries: The U.S. is a leader in helping other countries build stronger economic foundations. The bike industry can help America continue this legacy with policies that support investments in developing nations.

PeopleForBikes is advocating for a number of policy proposals that align with our principles and goals for U.S. trade policy, including: 

Reducing duties on bicycle components and raw materials, specifically Section 301 tariffs and Section 232 steel and aluminum tariffs. 

A wholesale reduction or elimination of the de minimis shipment threshold for bicycles and bicycle accessories, including helmets and other highly regulated safety products.

The bipartisan Import Security and Fairness Act (H.R. 4148/S. 2004) from Representatives Earl Blumenauer (OR-03) and Neal Dunn (FL-02) and Senators Sherrod Brown (OH) and Marco Rubio (FL) would eliminate de minimis treatment for goods imported from non-market economies

A bicycle manufacturing and assembly onshoring incentive proposal from Rep. Blumenauer that would:

Temporarily remove tariffs on bicycle components imported for assembly 

Establish an electric bicycle production tax credit 

Provide businesses loans of up to $50 million to support investment in manufacturing for bicycles and electric bicycles

Extending the Miscellaneous Tariff Bill and renewing the Generalized System of Preferences.

On April 16, U.S. Trade Representative (USTR) Ambassador Katherine Tai testified before the House Ways and Means Committee on the Biden Administration’s 2024 Trade Agenda. In the USTR hearing, Congressman Mike Thompson, the incoming chair of the Congressional Bike Caucus, asked Ambassador Tai about her agency’s plans regarding de minimis policy and specifically highlighted the threat of unsafe, untested bicycle helmets and electric bicycles entering the U.S. as a reason for reform. She responded that the USTR was looking for action and direction from Congress on this issue. 

On April 19, the committee held a markup to advance six pieces of legislation related to trade with China. The committee advanced legislation related to de minimis and the Generalized System of Preferences (GSP). PeopleForBikes supports this effort to renew GSP and reform de minimis policy, which could save the bicycle industry millions in retroactive duties if signed into law. 

The GSP bill would reinstate duty relief retroactively to December 31, 2020, and importers would be able to apply for the refund of all duties paid that otherwise would have been reduced or eliminated under GSP had it remained in place. The bill also imposes additional factors for countries to remain eligible for the GSP program and increases the rules of origin requirement for local inputs from 35% to 50% by 2031.

The de minimis bill is somewhat limited and would remove de minimis treatment only:

Where "merchandise covered by a single order or contract is forwarded in separate lots to secure the benefit of such subsection”

"With respect to any article that is subject to duties or other import restrictions" under Section 301 tariffs or other trade actions (potentially including the pending aluminum extrusion trade action)

PeopleForBikes will continue to support sound trade policy that advances the goals and needs of the bicycle industry. We’ll weigh in on these policies as they move through the legislative process and ensure our members stay updated and aware of any changes in policy that could affect their businesses. 

Advocating for a Pro-Bike Federal Trade Agenda

From trade to consumer product regulations, federal policymakers are taking a closer look at policy options to protect the import, sale, and ownership of quality electric bicycles in the United States. As the nation’s only trade association for the bicycle industry, PeopleForBikes is committed to advancing strong policies and regulations to protect consumers and our members across the bicycle supply chain. New proposals before Congress and the Consumer Product Safety Commission (CPSC) could lead us to a future where consumers and riders don’t have to worry about whether the helmet or electric bicycle they’re purchasing meets applicable testing standards designed to help keep them safe.

We’ve already written about the CPSC’s comment period for electric bicycles and our goals for setting federal standards for e-bikes. The other side of the coin is how potentially unsafe products that don’t meet these standards are able to get through our ports and entry systems and into the hands of American consumers. Keeping the public safe from such products is, or should be, the most basic function of our national trade policy. 

Thanks to bicycling’s biggest advocate in Congress, Bike Caucus Founder and Co-chair Congressman Earl Blumenauer (D-OR-04) — as well as his colleagues Rep. Neal Dunn (R-FL-17) and Senators Sherrod Brown (D-OH) and Marco Rubio (R-FL) — the newly reintroduced Import Security and Fairness Act (H.R. 4148/S. 2004) would end “de minimis” treatment for goods imported from China and Russia. 

Before diving into what that means for bikes, it’s important to understand what de minimis means: most countries set a de minimis threshold to allow small dollar imports to bypass duties. In order to reduce the administrative burden of collecting tariffs for small shipments, almost every country specifies a de minimis amount for which tariffs and duties are not collected. Specifically, the U.S. defines the de minimis threshold as follows:

De minimis provides admission of articles free of duty and of any tax imposed on or by reason of importation, but the aggregate fair retail value in the country of shipment of articles imported by one person on one day and exempted from the payment of duty shall not exceed $800 (Section 321, 19 USC 1321).

In 2016, President Obama signed the Trade Facilitation and Trade Enforcement Act of 2015. This law significantly raised the value of a shipment of merchandise that may be imported free of duty from $200 to $800. While this change may have made sense for the international traveler returning with some items from a trip abroad, it failed to consider the impact on direct online sales to U.S. consumers from foreign sellers. This law has had the unintended consequence of rapidly shifting purchases formerly made from American retailers to foreign online sellers, making those purchases duty-free and thus allowing them to avoid the formal customs entry process whereby incoming goods are monitored and inspected by various government agencies, including the CPSC. 

Most countries set these de minimis amounts at much lower levels than the current U.S. amount. Subject to fluctuations in exchange rates, Canada sets the level at $15, Mexico at $100, Japan at $90, South Korea at $150, and the European Union at $170. The de minimis duty-free import level for China is less than $10. While our prior level of $200 was comparable to these trading partners, the increase to $800 vastly exceeds these global norms. 

The increase in the de minimis threshold provides a clear competitive advantage for foreign retailers of consumer goods. Customers can shop online from internationally based retailers or manufacturers, which openly advertise the fact that tariffs are not collected on shipments below $800, and buy products duty-free. In essence, the law enables foreign businesses to set artificially low prices by avoiding tariffs on goods that would be collected if imported by U.S. businesses and sold domestically. This is especially true of bicycles, many e-bikes, and other bicycle products, the vast majority of which are valued at less than $800.

PeopleForBikes has been advocating for a lower domestic de minimis threshold since it was increased in 2016 and outlined the issue as a priority in our 2021 Trade Agenda. The sponsors of the newly proposed Import Security and Fairness Act introduced the bill to limit the import of products made with forced labor, intellectual property theft, and otherwise dangerous goods. 

So, how does this trade loophole connect back to electric bicycle safety?

Many powered micromobility products and replacement lithium ion batteries involved in the fires that have damaged New York City are imported directly to consumers from foreign sellers because they cost less than $800, therefore falling under the de minimis threshold. These products are cheaper than quality, safe electric bicycles and other powered micromobility products because they do not undergo or meet any third-party testing requirements. 

Moreover, because these foreign sellers may be beyond the reach of U.S. courts, they are largely able to avoid legal liability to their international consumers. Should the Import Security and Fairness Act be signed into law, or Congress otherwise agrees to lower the de minimis threshold, these unsafe, untested products would face more scrutiny on import and shippers would be required to pay any applicable duties.

The next step to increase consumer safety would be the adoption of new CPSC regulations to create clear standards for all lithium ion batteries used in mobility devices, including e-bikes, that currently avoid scrutiny under de minimis. The best way to protect the public from untested and unsafe lithium ion batteries is to be able to identify and turn them away at the border before they enter the United States.

This one-two punch of federal policy and trade and consumer product safety working together would help ensure that the e-mobility products that Americans need and want are as safe as possible. It would also shift the economic benefit from selling these products back to responsible manufacturers and retailers in the United States. This would be a big win for the government, the economy, and consumers alike.

What You Should Know About E-Bike Battery Certification

PeopleForBikes Supports NYC Council Legislation on Electric Bicycles and Lithium Ion Batteries

New Battery Safety Bills Land in Congress

Federal Policy Moves for Safer Batteries and E-Bikes

On December 16, 2022, the United States Trade Representative (USTR) announced a nine-month extension on 352 Section 301 tariffs exclusions. The exclusions were previously extended on March 23, 2022, and were scheduled to expire on December 31, 2022. The latest extensions will last through September 30, 2023. These extensions cover numerous categories of bicycles including all children’s bikes and some electric bicycles. We estimate these extensions will cover products worth more than $370 million in annual import value and could save the bike industry approximately $100 million in duty payments. 

Bicycle products covered by this exclusion reinstatement include the following items. Applicable Harmonized Tariff Schedule (HTS) subheadings are provided for clarity:

Kids’ bikes with less than 20" wheels, classified in HTS 8712.00.1510.

Kids’ and BMX bikes with 20" wheels, classified in HTS 8712.00.1520.

Kids’ and BMX bikes with 24" wheels, classified in HTS 8712.00.1550.

Electric motorcycles of 1,000 watts or less, classified in HTS 8711.60.0050 or 8711.60.0090 (this applies to many electric bicycles).

Certain adult bicycles with a drive belt and hub gearing, classified in HTS 8712.00.2500.

Certain adult single-speed bicycles, classified in HTS 8712.00.2500.

Certain adult bicycles equipped with three speeds and coaster brakes, classified in HTS 8712.00.3500.

Carbon fiber bicycle frames valued at $600 or less, classified in HTS 8714.91.3000.

Certain helmets, classified in HTS 6506.10.6045.

Certain bicycle trailers, classified in HTS 8716.40.0000.

Certain messenger bags, backpacks, hydration packs, and duffel bags, classified in HTS 4202.12.8130, 4202.92.0400, 4202.92.3120, 4202.92.3131.

For members of the bike industry, please check with your trade counsel and customs broker to verify the eligibility of your products for these exclusions.

The USTR granted these extensions to avoid impacts on affected industries while it determines whether or not to extend Section 301 tariffs as part of a required four-year review process. The review process includes a period for public comment submissions that will remain open until January 17, 2023. 

This announcement is yet another in a series of positive results from a concerted and ongoing effort by PeopleForBikes and the bike industry to obtain relief from the Section 301 tariffs. 

PeopleForBikes is currently leading industry efforts to submit comments in opposition to the continuation of Section 301 tariffs on bicycles, electric bicycles, bicycle components, and accessories such as trailers, lights, and helmets. For more information or assistance with comment submission, please contact PeopleForBikes’ Policy Counsel, Matt Moore, at matt@peopleforbikes.org. 

Stay updated on our trade and tariff page and on Twitter @pfbpolicy for the latest breaking policy news. 

U.S. Bicycle Industry to Save Additional $100 Million in Extended Tariff Exclusions

Alix Armour, head of sustainability at Super73, and Troy Jones, social and environmental responsibility manager at Specialized, serve as co-chairs on the Supply Chain and Social and Environmental Responsibility track within PeopleForBikes’ Sustainability Working Group.

The word sustainability usually conjures images of the environment, materials and recycling, not necessarily supply chain outcomes from social inequalities and environmental risks. These issues, beneath the surface of the sustainability conversation, include safety and the status of foreign migrant workers, child labor, codes of conduct, conflict minerals, environmental performance improvement, legal and regulatory compliance, transparency, management systems and diversity in suppliers. 

Immense challenges like these make up the core discussion of the Supply Chain and Social and Environmental Responsibility (SER) track within PeopleForBikes’ Sustainability Working Group (SWG). The track meets quarterly, bringing together leaders from across the bike industry interested in learning from one another on how to tackle these big issues of supply chain and SER. 

Figuring out how to get your company started can be daunting, but the work is critical — consider it risk management for your brand. Startups and 50+ year old companies have very different business models, processes and work capacities, and as co-chairs, we bring both experiences to the conversation. As passionate supply chain and sustainability professionals, we’re not wasting time getting to the hot topics. We’ve tackled such themes with PeopleForBikes members that have both close to zero and decades of experience. 

Our first initiative was to invite different supply chain SER service providers to review their tools and techniques bike companies can use to measure and track SER performance metrics. This helped give members who were new to the concept an idea of the existing methods and practices available to evaluate SER for a wide range of needs and company sizes. We also spent time discussing codes of conduct, what difficulties our members are encountering internally and externally, as well as bringing in diverse speakers to offer new perspectives on SER to our discussions.

SER service providers can simplify due diligence by providing elaborate supplier questionnaires, in-factory audits, tracking platforms, risk analysis, legal council and more. While incredibly effective, they do come at a cost. 

For smaller companies who are just starting the process, a simple first step is getting to know and start building relationships with all of your suppliers, understanding stress factors and seeing how you can help and improve specific situations. No matter your company size, it is crucial to identify and evaluate your critical suppliers. In our track, we outlined a simple scoring system to help bike companies identify risk and procedures. 

After that has been established, it’s up to your brand to decide which metrics are most important for your strategy. For example, if you’re trying to calculate your Scope 3 emissions, you may need to find out the locations of all your Tier 1 and 2 suppliers. Depending on your company’s products, you may need to collect valuable supply chain data for compliance reasons, carbon emissions calculations, materials evaluations, etc. 

Our goal in the Supply Chain and SER track is to help brands start implementing and increasing SER practices into their operations, with an objective of 50% of track members establishing an implementation plan by the end of 2022. To join and learn more about how your company can get started, reach out to Noa Banayan, PeopleForBikes’ director of federal affairs and our track staff liaison, at noa@peopleforbikes.org. 

Factoring Social and Environmental Responsibility Into Your Supply Chain

Topics

Trade and Tariffs