Our team hosted a webinar providing an overview of the proposed tariffs. Access the recording and slides here.
New tariffs proposed for bicycles and bicycle products
The United States Trade Representative (USTR) has proposed increasing the tariffs on electric bicycles and motors to 25 percent and the tariff for most other bicycle products by 10 percent. Right now these tariffs are still in the proposal phase. They have not been finalized.
Updated 8/2: On Tuesday, the administration announced that they are considering increasing the proposed tariff on bicycles, components and accessories to 25 percent. If implemented, this tariff could increase duties on the bike industry by an estimated $250 million, resulting in higher costs for retailers, suppliers and customers.
Updated 8/7: On Tuesday August 7, USTR announced that the round of tariffs that includes e-bikes and e-bike motors has been approved. This means that tariffs on electric bicycles imported under Harmonized Tariff Schedule (HTS) headings 8711.60.00 or 8711.90.01 will increase from zero to 25 percent. Tariffs on e-bike motors imported under HTS heading 8501.31.40 will increase from four percent to 29 percent. The tariffs will go into effect on August 23, 2018. To read the announcement from USTR, click here.
Below you can find important information related to the proposed tariff increases and learn you can take action to help stop them from going into effect.
Why is USTR taking this action?
The tariff increases are being taken under Section 301 of the Trade Act of 1974. This is a tool that can be used by USTR to impose punitive sanctions on a country engaged in unreasonable or discriminatory practices that burden or restrict U.S. commerce. In this case the primary concern is the theft of U.S. intellectual property by China.
This investigation is specifically focused on China and the proposed tariffs only affect products imported from China. It does not include Taiwan or other countries.
What products are included?
Most bicycle products are included within the scope of this proposal. We are continuing to analyze the thousands of Harmonized Tariff Schedule headings that have been proposed for a 10 percent tariff increase to ensure we capture all products. A preliminary list of affected products is available here.
If you see something that you think should be added to this list, please email Alex Logemann.
What has been done so far to fight these tariff increases?
The USTR has already concluded its public comment process for the proposed 25 percent e-bike tariff. The bike industry made a strong statement to the agency, sending more than 230 comments objecting to the tariff. Delegates from the bike industry also testified against the tariff increase on July 25.
The USTR is still accepting public comments on the proposed 10 percent tariffs. We have also submitted requests for five delegates from the bike industry to testify at the public hearing on August 20-23.
What I can do to help stop these tariffs from going into effect?
USTR is undertaking a public comment process to obtain feedback on the proposed tariffs before they are finalized. Members of Congress also have an important voice in discussing this proposal with the administration.
The administration and Congress need to hear from everyone affected by these tariffs—bike manufacturers, retailers and riders. PeopleForBikes and its allies in the bike industry will voice opposition to the increased tariffs; we ask you to join us in taking action by using the links below.
- Bike retailers, click here.
- Other bike businesses, click here.
- Bike riders and bike supporters, click here.
If the tariffs are finalized, is there anything else I can do?
Yes. If any of these proposed tariffs are finalized, the USTR has also created an exemption process where you can apply for exemptions for specific products. This would be most helpful in a situation like e-bikes where the HTS classification includes a broad range of items in addition to bicycle products. Applications must include specific data and be received by October 9. You can view the full details for the exemption process here.
Where I can learn more about the proposals?
To view USTR’s proposal for a 25 percent tariff on electric bicycles and motors, click here.
To view USTR’s proposal for a 10 percent tariff increase on most other bicycles and bicycle products, click here.