The impact of “reciprocal tariffs” on the bicycle industry
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Since February, the US-China trade friction has continued to escalate. The US government imposed a 10% tariff on all Chinese imports from February 4, and doubled the tariff to 20% on March 4; from April 9, the Trump administration will impose an additional 34% tariff. Before Trump took office, the average tariff on Chinese products entering the United States was 13%. Since February 4, Trump has increased the tariff by 10% twice, and is expected to impose a 34% tariff on April 9. If the 50% tariff he threatened this time is implemented, a total of 117% tariffs will be imposed on Chinese products entering the United States.
On April 2, 2025, US President Trump signed two executive orders on so-called "reciprocal tariffs" at the White House, announcing that the United States would set a 10% "minimum base tariff" for its trading partners and impose higher tariffs on certain trading partners, including 34% on China, 32% on Taiwan Province of China, 20% on the European Union, 10% on the United Kingdom, 26% on India, 46% on Vietnam, 36% on Thailand, and 49% on Cambodia.
US President Trump declared a national emergency that day to enhance the US' competitive advantage, protect US sovereignty, and strengthen US national and economic security. In his speech, Trump defended all tariffs, saying that these tariffs were "well-intentioned" and that overall, these tariffs were lower than tariffs and other trade barriers imposed by other countries on US imports. What impact will the adjustment of "reciprocal tariffs" have on the bicycle industry? The Taiwan Bicycle Association (TBA) has also conducted relevant statistics. The latest tariff rates for relevant countries and regions are as follows:
Mainland China: Ordinary bicycle tariff: 11+25+10+10+34=90% (If a punitive tariff of 25% on Venezuelan oil must be added in the future, it will be 115%) Electric bicycle tariff: 0+25+10+10+34=79% (If a punitive tariff of 25% on Venezuelan oil must be added in the future, it will be 104%) Taiwan: Ordinary bicycle tariff 43%, electric bicycle tariff 32%
Vietnam: Ordinary bicycle tariff 57%, electric bicycle tariff 46%
Cambodia: Ordinary bicycle tariff 60%, electric bicycle tariff 49%
Indonesia: Ordinary bicycle tariff 43%, electric bicycle tariff 32%
EU: Ordinary bicycle tariff 31%, electric bicycle tariff 20%
Philippines: Ordinary bicycle tariff 28%, electric bicycle tariff 17%
The tariff will take effect at 00:01 a.m. Eastern Time on April 9, and all other countries will continue to abide by the original 10% tariff base. Currently, the bicycles and bicycle parts imported into the United States are actually mainly from China, Taiwan, Vietnam, and Japan. In addition to Japan "enjoying" the preferential treatment of 24%, the two main production areas, China and Taiwan, are not low. In fact, some high-end brands in the United States are still mainly OEM in Taiwan. Although Taiwan has an advantage of almost 22 points over mainland China, this advantage is not obvious in front of the super-efficient industrial chain of mainland China. For bicycle companies that originally transferred the bicycle industry to Southeast Asian countries, this tariff adjustment has not been spared. Countries such as Vietnam, Cambodia, Thailand and Indonesia have also increased a lot of tariffs.
There is no need to panic and you can wait and see. After seeing how much impact this tariff adjustment will have on the subsequent development of the global bicycle industry, we will make targeted adjustments.
