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 The unofficial, unpublished steel and aluminum tariff notices are currently available.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.