Latest tariffs
On July 27, the United States and the European Union announced a new tariff agreement, imposing an additional 15% tariff on most European imports, lower than the previously threatened 30% rate. The 15% tariff is in addition to existing base tariffs on imported goods. While this provides some relief to the EU, the agreement is currently considered a framework agreement, and technical details remain subject to negotiation in the coming weeks. The 15% rate may be adjusted for specific products through future exemptions or bilateral arrangements. This new tariff level represents a significant increase from the average level of 4.8% before Trump took office, marking a long-term shift in trade policy. However, the agreement also includes zero tariffs on key US exports, such as aircraft, certain chemicals, and some generic drugs. The 15% rate is also lower than the 30% tariff previously considered by the United States, easing tensions between the two major economies.
The United States has previously reached tariff agreements with the United Kingdom, Japan, Indonesia, the Philippines, and Vietnam.
The Trump administration recently announced preliminary trade deals with several countries that export bicycles to the United States, but so far no new agreements have been reached with the industry's largest suppliers, and details of those that have been announced have been sparse. Tariffs in all of the new agreements represent significant increases from historical levels, but are lower than the initial "reciprocal" tariff rates announced by President Trump on April 2nd. These reciprocal rates were originally scheduled to take effect on July 8th but were delayed until August 1st. The preliminary agreements imposed a 15% tariff on imports from Japan, a 19% tariff on imports from the Philippines and Indonesia, and a 20% tariff on imports from Vietnam. These rates are in addition to the long-standing tariffs on bicycles and related products, which typically range from 5% to 11%.
Japan
The United States has long imported components from Japan. Shimano, headquartered in Japan, still produces some high-end components and e-bike motors there. However, most of Shimano's components are exported to the US as original equipment for complete bicycles, making tariffs based on the bicycle's country of origin (depending on the frame's production). Currently, the majority of complete bicycles and e-bikes shipped to the US come from mainland China, Taiwan, and Cambodia. Mid-priced Shimano components are typically produced in Malaysia and Singapore. Looking at the US import list of bicycle products (including components, complete bicycles, and some accessories, but not e-bikes or cycling equipment), direct imports from Japan account for only approximately 2% of total bicycle imports. The 15% tariff set in the new trade agreement is lower than the 25% proposed in the reciprocal tariff announcement, but higher than the 10% tariff in place since April and significantly higher than the previous free trade tariff under most-favored-nation status.
Vietnam
The United States imports a significant number of electric bicycles from Vietnam-though exact figures are difficult to obtain because e-bike imports are not counted separately but combined with electric motorcycle imports. However, even excluding e-bikes, US imports of conventional bicycles and other bicycle-related products from Vietnam reached approximately $68 million. Therefore, the 20% interim agreement announced on July 3rd is welcome news for the industry. Even though this rate is higher than the 10% implemented on April 2nd, it is still significantly higher than the previous tariffs. Industry insiders had previously worried about reciprocal retaliatory tariffs between Vietnam and the United States (as part of the negotiations, Vietnam agreed to eliminate all tariffs on US goods). The Trump administration has stated that it will impose a 40% tariff on products imported from Vietnam that it determines are transshipped from China or elsewhere. It is unclear whether e-bikes from Vietnam will also be subject to the 40% tariff, as they undoubtedly contain motors and other components produced in China or other countries.
Philippines and Indonesia
Indonesia and the Philippines, both members of the Generalized System of Preferences (GSP) program, enjoyed free trade with the United States until the expiration of the GSP agreement in 2020. Since then, imports from these two countries to the United States have been subject to tariffs at the standard U.S. Most-Favored-Nation (MFN) rate. Complete bicycles or parts from the Philippines or Indonesia rarely appear in U.S. import data-however, many soft goods, including cycling apparel, backpacks, and bags, are likely produced there and imported under a more general category, rather than classified as "bicycle accessories." The new tariff agreed upon with Indonesia is 19%, lower than the 32% threatened on April 2nd, but higher than the previous zero tariff under the GSP. The new tariff agreed upon with the Philippines is also 19%, slightly lower than the 20% threatened earlier this month, but higher than the 17% rate announced on April 2nd and significantly higher than the zero tariff under the GSP.
U.K.
In May, the White House announced an agreement with the UK to maintain the 10% reciprocal tariff on most UK goods announced on April 2, but with a reduced rate for some UK cars. Bicycles appear to remain subject to the 10% tariff, in addition to the long-standing 5.5% and 11% tariffs on complete bicycles. Given the new tariffs imposed on some other countries, the additional 10% tariff is good news for companies like Brompton, which continues to produce folding bikes and electric bikes in the UK and launched several new products specifically for the US market this spring.
Mainland China and Taiwan
The reciprocal tariff rate on Chinese mainland goods is currently 10%, a significant reduction from the initially threatened 145%, and negotiations are continuing between the two sides. US and Chinese trade officials will meet in Sweden next week, and US Treasury Secretary Scott Bessen has indicated that the current agreement with China is likely to be extended beyond August 1st. The reciprocal tariff rate on Taiwanese imports is currently 10%, down from the 32% rate announced on April 2nd. The 32% rate will take effect on August 1st unless an agreement is reached before then. A Taiwanese delegation is expected to visit Washington this week.
On April 2, Trump announced a 49% reciprocal tariff on Cambodia, a major supplier of bicycles and e-bikes to the United States. He subsequently reduced the tariff to 36% and postponed its implementation until August 1. Trump indicated that he might maintain the high tariffs on Cambodia and Thailand due to recent conflicts between the two countries. Unless an agreement is reached, products from Malaysia, another bicycle and parts supplier, will be subject to a 24% tariff effective August 1. With trade negotiations between the United States and China set to resume on July 28, the outcome of the negotiations will further shape the global trade landscape and potentially impact supply chain stability.
Tariff impact
Cracking down on export-oriented industries, suppliers affected
Starting in January 2025, the Trump administration has implemented massive new import tariffs. These are particularly significant for industry: In June, tariffs on steel and aluminum doubled to 50%, and starting in the spring, a 25% surcharge was imposed on auto parts, electronics, and mechanical engineering products. A further 15% tariff will be imposed on EU imports from August 2025. Bicycle manufacturers that rely on frames, e-bike parts, or aluminum components produced in or exported to the United States will be directly or indirectly affected. Over 60% of industrial companies surveyed reported being negatively impacted by these tariffs, including 80% in the mechanical engineering sector, 55% in electrical equipment manufacturers, and approximately 70% in the metal production sector. Components that play an increasingly important role in bicycle manufacturing, such as sensors, batteries, and control systems, may also be affected by the tariffs.
China's competitive pressure is increasing, and it may turn to the EU market
The survey found that the US tariff policy has also indirectly affected the European market. Around 60% of companies expect that Chinese competitors squeezed out of the US market by US tariffs will become more active in Europe. For bicycle retailers, this could mean increased price pressure – for example, by selling e-bikes or parts at low prices. It is worth noting that many companies view the EU market as a safe alternative: over 40% of respondents expect this market to continue to grow in importance by 2029. India is also gaining attention – around 40% of industrial companies predict that this sales market will continue to grow in importance. For the bicycle industry, which has shifted its business focus to Asia, India could become a future market, especially in the areas of urban transportation and affordable mobility solutions.
