The Trump administration's Section 232 tariffs have again impacted the bicycle industry, with steel used in e-bikes, indoor cycling trainers, and some repair tools now facing tariffs of up to 50%.
An unpublished notice from a U.S. Department of Commerce division lists hundreds of tariff codes for steel derivatives subject to the additional duties. These include code 8711.60.00, which applies to e-bikes (as well as e-cargo bikes and e-scooters), and code 9506.91.00, which previously applied to exercise bikes and hydraulic cycling trainers (according to the PeopleForBikes Industry Code Guide). The new list also covers repair tools such as pliers and hex wrenches, as well as ball and roller bearings imported for the bicycle industry.
The steel components of these products will face a 50% tariff from most countries and a 25% tariff from the UK. While the steel components will not be subject to retaliatory tariffs, other existing tariffs will still apply to the full value of the imported goods.
"In China, for example, e-bikes will still be subject to the full 25% Section 301 tariff and the 20% International Emergency Economic Powers Act fentanyl tariff, though the 10% retaliatory tariff currently in effect for a 90-day suspension will not apply," explained Matt Moore, policy advisor at PeopleForBikes.
Unless the steel is melted in the United States and assembled abroad, it is subject to these tariffs. The list was published via an undisclosed notice in the Federal Register last Friday and is scheduled for publication on Tuesday. The new tariffs took effect at 12:01 a.m. on Monday.
Most e-bikes have aluminum or carbon fiber frames, but brands like Marin, Benno, Schwinn, and Brompton import steel-framed e-bikes. (Bromptons made in the UK are expected to be subject to the 25% tariff.) Some e-cargo bikes from Yuba, Surly, Xtracycle, and Bunch Bikes also use steel frames.
Some importers told us that their factory invoices list the material cost and labor value-added of the product, meaning importers only need to pay the steel/aluminum tariff on the material cost (for example, far less than the cost of the entire frame). However, some importers said they expect to pay the full tariff on the cost of the steel product (frame or bolts).
Importers were actively seeking a solution on Monday.
The president of Marin Bikes questioned: "The question now is how detailed the declarations need to be. For example, can we declare the steel content of the frame and fork? Or do we need to get down to the hardware level, such as the derailleur shaft, motor internals, battery mount, and water bottle bolts?"
Bunch Bikes founder and CEO Aaron Powell said that the steel components of his imported electric cargo bikes appear to be subject to the new tariffs. However, because he recently expedited shipments from China to arrive before the retaliatory tariffs against China took effect on August 8, he is currently unaffected. Although the Trump administration subsequently announced a 90-day delay in the implementation of the tariffs, his efforts to expedite shipments seemed futile, he is now grateful for having unexpectedly avoided the steel tariffs.
Powell noted that the Bureau of Industry and Security, which developed the derivative product list, publicly solicited industry input. Steelmaker Nucor proposed adding the HS code 8711.60.00 to the list, but the bicycle industry, unaware of the proportion of steel used, failed to respond quickly and missed the opportunity.
Powell speculated that Nucor's target was electric motorcycles (which share the same HS code as electric bicycles), suggesting, "Now is the perfect time to apply for a separate HS code for electric bicycles and decouple them from electric motorcycle imports." He plans to transition Bunch Bikes to aluminum frames in the future, but predicts the government will soon include aluminum derivatives on the tariff list.
Previous tariffs on Chinese steel and aluminum derivatives already included bicycle chains and some cables. Starting this spring, certain bicycle products, such as repair racks, imported using the common HS code were also subject to material tariffs. The Section 232 tariffs initially targeted imports from China but were later expanded globally.
