While President Trump stated his intention to put new and widespread tariffs into place as soon as he took office, the tariffs have yet to be announced. On Inauguration Day, the president issued an executive order titled the “America First Trade Policy.” The order directs the U.S. Treasury, Department of Commerce, U.S. Trade Representative, and Office of Management and Budget (OMB) to undertake comprehensive reviews of U.S. trade policy and trade agreements and also investigate adverse actions by other countries. 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.”

These agencies are to report their findings and recommendations for actions to the president by April 1, 2025. The reports will then provide a factual and legal basis for future actions by the administration, which has a number of broad powers over trade policy. Among the possible actions are new or increased Section 301 tariffs on China, additional Section 232 tariffs on product categories like steel and aluminum, renegotiation of the United States-Mexico-Canada Agreement (USMCA) or other trade agreements, de minimis reform, or loss of China’s “most favored nation” trading status.

The president is expected to act quickly once the reports are received, but exactly which actions will be taken is still undetermined. Despite the plan laid out in the order, the president stated to reporters that new 10% tariffs on China, as well as a 25% tariff on goods imported from Canada and Mexico, could be announced as soon as February 1. As a result of the new administration’s approach, the international trade landscape will be 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.

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 policies on behalf of the bike industry including amending the de minimis threshold and retroactive authorization of the Generalized System of Preferences (GSP). Both of these policy priorities have bipartisan support in Congress and PeopleForBikes will continue supporting their passage in the coming months. 

STAY INFORMED: Learn how actions from the first week of the new administration are shaping the future of the bike industry with an analysis on key policies, executive actions, and shifts in federal priorities during an informative webinar with PeopleForBikes policy experts on January 28. Register Now.

As the new administration rolls out its trade agenda and opportunities to influence policy arise, it is critical that executives and leaders across the bicycle industry work with PeopleForBikes to advocate for outcomes that benefit bike businesses. As these and other trade policy issues unfold, PeopleForBikes will organize an industry fly-in to Washington, D.C. in Q1 2025 to introduce bicycle industry leaders to key congressional representatives. If you are interested in participating in this advocacy event, please contact PeopleForBikes Vice President of Government Relations Dr. Ash Lovell at ash@peopleforbikes.org for more information.