MARCH 25 UPDATE

Trump Administration Announces New Venezuelan Oil Tariff

On March 24, the administration issued an executive order directing the imposition of a 25% tariff on all products imported into the United States from countries that buy oil imported from Venezuela. The tariffs are being imposed under the International Emergency Economic Powers Act (IEPPA) based on several previous declarations related to Venezuela. While the exact details are yet to be confirmed, here is what we know about these new tariffs: 

• The tariffs will take effect “on or after April 2, 2025.”
• They will be “supplemental to duties on imports already imposed,” meaning they will be in addition to all other existing tariffs.
• The Secretary of State will have the discretion to determine which countries are importing Venezuelan oil and therefore be subject to the tariffs.
• The tariffs can be removed in the future, but will remain in effect for one additional year after the Secretary of Commerce determines that a country no longer sources oil from Venezuela

According to a 2024 report from the U.S. Energy Information Administration, the countries (other than the United States) that bought oil from Venezuela in 2023 and their share of those exports are:

1. China (68%)
2. Spain (4%)
3. Cuba (4%)
4. Singapore (1%)
5. Malaysia (.3%)
6. Vietnam (.01%)

These tariffs are primarily directed at imports from China, and they will be in addition to all other current tariffs (base tariff, 25% Section 301 tariff, 20% additional tariffs, and 25% steel and aluminum tariffs on some products). This means that after April 2nd, the total tariff on adult bicycles imported from China will be 81% and the tariff on e-bikes will be 70%.

Whether any other countries currently import Venezuelan oil, and will therefore be subject to an additional 25% tariff on exports to the United States after April 2, will be determined by the administration, and we expect future publication of notices with specific findings and actions. 

This analysis is based on the most current information available at the time of release (March 25, 2025). In recent weeks, the administration has announced new tariffs, then altered course prior to their implementation. PeopleForBikes will continue to update the industry as further information becomes available.

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FEBRUARY 28 UPDATE

On February 27, the Trump administration announced it would advance the previously paused 25% tariffs on all imports from Canada and Mexico effective March 4. The administration also promised to levy an additional 10% tariff on all Chinese goods starting the same date. The new tariffs are based on previously issued executive orders intended to address illegal immigration and fentanyl smuggling.

The newly announced 10% tariffs on all imports from China are in addition to Section 301 tariffs that began in 2018 and an earlier 10% additional tariff on Chinese goods. Unless another last-minute reprieve is announced, most bicycles made in China will soon face a base duty of 11%, Section 301 tariffs of 25%, and new tariffs of another 20% for total import duties of 56%. With the additional 10%, the total tariff on electric bicycles imported from China will have risen from zero (duty free) to 45% since June 2024. Bicycle components and accessories from China will have duty costs in the same range, depending on applicable base duty rates and Section 301 duties.

PeopleForBikes reviewed media reports of conflicting or contradictory statements by administration officials, and while the administration has consistently advanced broad policies of increasing tariffs and these announcements must be taken seriously, the actual implementation of tariffs has varied from initial plans. Negotiations with Canada and Mexico are ongoing, and it's possible these tariffs could be further delayed, reduced, or limited in scope either before or after March 4. The implications of ongoing uncertainty in the global trade environment for the bicycle industry continue to be both profound and worrisome. 

The administration also announced its intent to pursue reciprocal tariffs, which are currently being studied by the Office of the United States Trade Representative (USTR). The agency’s report is due to the president by April 1, 2025. The administration said these reciprocal tariffs on all goods from all affected countries could go into effect as early as April 2. Because of the massive scope of these proposed tariffs and the likelihood that other countries will adjust their tariff rates to avoid reciprocal tariffs, actual implementation by U.S. Customs and Border Protection may require additional time.

PeopleForBikes remains committed to advancing favorable trade policies on behalf of the bike industry, including advocating for an exclusion process to obtain select relief from the newly enacted tariffs. While the administration has been clear up to this point that no exclusions will be granted when tariffs are enacted, legislators on both sides of the aisle understand the damaging effects these tariffs will have on businesses across the country. If the tariffs are effective in achieving the administration’s stated goals, there may be future opportunities for such relief. In the near term, however, that appears unlikely.

In response to urgent tariff developments, PeopleForBikes convened industry leaders in Washington D.C. from February 24-25 to meet with Democratic and Republican legislative staff and discuss trade and tariff challenges. We repeatedly heard that the most effective course of action is to write to your congress member and share how these tariffs and ongoing trade uncertainty are hurting your business. If you are interested in writing to your representatives on behalf of your business, please contact PeopleForBikes Vice President of Government Relations Dr. Ash Lovell at ash@peopleforbikes.org for more information.

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FEBRUARY 1 UPDATE

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
• There is no exclusion process 
• 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.