Data from the U.S. Census Bureau this week showed an 11% drop in bicycle imports in the first half of 2025. As the industry grapples with Washington's new tariffs, the import source landscape has shifted dramatically.
As the industry turns to Cambodia as a preferred alternative production location (at least for now), China's bicycle exports to the U.S. plummeted 42% in the first half of the year ending in June. Cambodian exports surged 77% to $132 million, surpassing China as the largest supplier of bicycles to the U.S. so far this year.
The Trump administration has previously threatened to impose several new tariffs on Chinese imports, potentially reaching triple digits if combined with existing tariffs and the Section 301 tariffs implemented during its first term. The U.S. is now imposing an additional 30% "reciprocal tariff" on Chinese bicycles, in addition to several existing tariffs. The new tariff is scheduled to take effect on August 12.
Meanwhile, following President Trump's announcement on April 2nd, the United States quickly implemented temporary reciprocal tariffs of 10% on most countries. The new rates (mostly above 10%) will take effect on August 7th; for example, Cambodia's tariff will rise to 19%. Products from Taiwan, which have been subject to a 10% tariff since April, will increase to 20% this week. Year-to-date, bicycle imports from Taiwan have fallen 20%, while imports from Malaysia, Indonesia, and India have increased. These figures include all non-electric bicycles.
Vietnam's exports to the US experienced the most significant fluctuations. While total exports in the first half of the year were nearly flat compared to the same period last year, monthly figures fluctuated dramatically: declining in January and February, recovering in March and April, plummeting 32% in May before surging 72% in June, ultimately resulting in a slight increase of 0.1% for the six-month period. This volatility stems from the dramatic fluctuations in Vietnam's tariffs on US exports (both those already implemented and those threatened).
Trump's initial announcement of a 46% reciprocal tariff on Vietnam prompted importers to urgently adjust, but the rate was subsequently reduced to 10% and maintained until this month. The Trump administration recently announced an agreement with Vietnam to set the tariff at 20%.
The advantages of Cambodia's bicycle industry are primarily reflected in the following aspects:
Policy incentives
The EU grants Cambodia Generalized System of Preferences (GSP), particularly the GSP Plus program, exempting Cambodian bicycle exports to the EU from a 14% tariff. In the US market, thanks to the US Generalized System of Preferences (GSP), Cambodian-made bicycles can enter the US duty-free. However, bicycles imported from mainland China and Taiwan are subject to an 11% import tariff, which was further increased during the Sino-US trade friction. This duty-free policy significantly reduces the export cost of Cambodian bicycles, making them highly price competitive in the international market.
Low labor costs
Cambodia boasts a large, young, and affordable workforce, with monthly wages of only approximately US$350, less than one-third of those in coastal China. The bicycle industry is labor-intensive, and establishing factories in Cambodia significantly reduces labor costs, giving Cambodian bicycles a competitive edge in price, allowing them to enter the international market at lower prices and attracting orders.
Opportunities for industrial relocation
In recent years, the global bicycle industry has undergone changes, prompting some international bicycle brands and manufacturers to relocate to diversify risks and reduce costs. Due to rising labor costs and trade frictions, some orders from China have shifted to Southeast Asia. Cambodia, leveraging its policies and cost advantages, has embraced this wave of industrial relocation. Brands like Trek and Kent have relocated some of their contract manufacturing operations from China to Cambodia, bringing capital, technology, and management expertise, strengthening Cambodia's bicycle industry chain and fostering the formation of an industrial cluster.
Geographical and Supply Chain Advantages
Cambodia's bicycle assembly plants are concentrated in the Bavet Special Economic Zone in Svay Rieng Province, adjacent to Vietnam. This region offers geographical and logistical advantages, facilitating the transportation and procurement of raw materials and parts. Furthermore, the EU authorizes Cambodia to use raw materials and parts originating in Vietnam for local production and export to EU countries. This facilitates Cambodian companies' access to raw materials and further helps them expand their international export share.
Growing Market Demand
With the global emphasis on green travel and low-carbon living, demand for bicycles in the international market continues to grow. As a region with relatively advanced environmental protection concepts, the EU has long maintained a high demand for bicycles. Cambodia has just caught up with this wave of growing demand and, relying on its own advantages, has continuously exported bicycles to the EU and other countries and regions, meeting market demand.
