PeopleForBikes' Tariff Resource Hub

Escalating trade pressures are disrupting every link in the bicycle supply chain, driving up costs, complicating sourcing, squeezing margins, and shaking consumer confidence. Our new resource hub breaks down what’s happening, why it matters, and how PeopleForBikes is leading the charge to protect the bike industry and your business.

ACCESS THE TARIFF RESOURCE HUB

2025 BIKE INDUSTRY TRADE AND TARIFF UPDATES

June 4 Update

New Trade Actions Could Significantly Impact Bicycle and E-Bike Imports

During the week of June 1, the U.S. Trade Representative (USTR) announced several major trade developments, with more actions expected within a week. The actions outlined below will have significant implications for bicycle industry importers.

Each tariff development is consistent with our previous analysis that new tariffs are intended to be sweeping across countries and products as a replacement to the unconstitutional IEEPA tariffs and temporary 10% Section 122 tariffs. There are opportunities to secure exclusions, but the bike industry must continue to vigorously advocate to achieve any tariff relief.

PeopleForBikes will be filing public comments and testifying in Washington, D.C. to advocate against new tariffs on bicycle products. We will also mobilize the bicycle industry to fight back against these tariff threats and take advantage of opportunities, including producing talking points and helping members submit public comments. Stay tuned for further updates on how your company can help with these efforts.

Section 301 Forced Labor Action Moves Forward

On June 2, the U.S. Trade Representative (USTR) issued a report outlining proposed actions tied to the ongoing Section 301 investigation into the prevention of forced labor practices. Under the proposal, products from 60 countries would be subject to a proposed additional tariff of 10%–12.5%. The Federal Register notice can be found here.

Countries that have implemented forced labor import bans, or have committed to doing so through reciprocal trade agreements, would face an additional 10% duty. This group includes:

• Canada
• European Union member states
• UK
• Mexico
• Indonesia
• Pakistan
• Ecuador
• Argentina
• Bangladesh
• Cambodia
• El Salvador
• Guatemala
• Malaysia
• Taiwan

All other countries would be subject to a proposed 12.5% additional duty, including China, Japan, Switzerland, Thailand, and Vietnam.

One area of concern is that lithium-ion batteries are specifically referenced in the USTR report. This could complicate efforts to seek exclusions for electric bicycles, which rely on imported battery systems and components.

Annex 1 to the Federal Register notice is a list of excluded products, which largely mirrors existing Section 232 exclusions and focuses on products with limited U.S. supply or national security considerations. No bicycle products were listed.

The proposal includes a public comment period through July 6 and an opportunity to testify at a public hearing beginning on July 7, with requests to testify due June 22. This is an opportunity for affected industries to seek product-specific exclusions. Industry participation will be critical.

Section 301 Excess Capacity Action Expected Soon

A second major development is pending Section 301 action addressing structural excess capacity, overproduction, and market distortions. The USTR report and recommended actions are expected as early as this week and are anticipated to include another round of written comments and a public hearing. We will provide more detailed information about this second action as it becomes available.

While final details remain uncertain, the likely outcome appears to be a return to tariff levels consistent with previous IEEPA tariffs and trade agreements previously reached with several countries. A key question for the industry that remains unclear is how these two new sets of tariffs will interact with base most favored nation (MFN) tariffs. Will they both be additional to MFN rates, or will there be a “maximum” tariff structure for at least some countries under their trade agreement with the U.S.?

If the latter approach is adopted, the effective tariff rates could align with current trade agreement caps, including:

• 15% maximum duty rate for imports from Japan, the European Union, and the UK
• 20% for imports from Taiwan

Clarification on tariff stacking will be one of the most important issues for the bicycle industry to monitor in the coming weeks.

New Section 301 Intellectual Property Investigation Targets Vietnam

The administration also launched a new Section 301 investigation focused on alleged inadequate intellectual property protections in Vietnam. The notice calls out five specific issues:

• Online piracy
• Counterfeiting
• Ineffective border enforcement
• Unlicensed software use
• Lack of criminal measures against cable and satellite signal theft

The investigation opens another public comment process and creates the potential for future trade actions affecting one of the bicycle industry's most important manufacturing hubs. We will be formulating a strategy for this investigation as we learn more about whether it is likely to result in tariffs focused on the core IP violations mentioned, or could result in higher duties that are more widespread.

There is an opportunity to submit public comments through July 2. The Federal Register notice can be found here.

USTR Seeks Comments on Tariff Modifications for Products from China

On June 2, the USTR announced a public comment process seeking input on “specific types of non-sensitive products that could potentially benefit from tariff modifications [between the U.S. and China] with the objective of achieving balance and reciprocity in our trade relationship.” The comment process is part of the development of the joint U.S.-China Board of Trade, intended to manage bilateral trade between the United States and China on an ongoing basis. The Federal Register notice can be found here.

PeopleForBikes views this as a major opportunity to either exclude bicycle products from Section 301 tariffs on China or reduce the rate below the current level of 25%. PeopleForBikes previously secured hundreds of millions in relief from Section 301 tariffs on China through granted or extended exclusions. Many of those same arguments can be applied here.

The deadline for comment submissions is July 10, 2026.

IEEPA Refund Process and June 9 Court Hearing

Separately, attention remains focused on litigation surrounding tariffs imposed under the International Emergency Economic Powers Act (IEEPA). A hearing before the Court of International Trade (CIT) is scheduled for June 9. The administration indicated it may appeal the CIT order directing that tariff refunds be issued to all importers. More specifically, the administration indicated it will appeal whether it is obligated to provide refunds for entries that have been liquidated for more than 90 days unless the importer has filed an action in the CIT. Depending on the outcome, importers may ultimately need to file their own complaints with the CIT to preserve refund rights to these entries or participate in any future recovery process. Additional clarity is expected following next week's hearing and any subsequent court actions.

Section 122 Litigation

In March 2026, several private companies and 24 state attorneys general filed litigation in the CIT challenging the 10% Section 122 tariffs the administration imposed to replace the IEEPA tariffs. In May, the court found the Presidential Proclamation imposing the Section 122 tariffs was “invalid as contrary to law.” However, the CIT declined to issue widespread relief in the case, instead choosing to order that the administration be barred from collecting further tariffs from the specific plaintiffs in the case, and ordering refunds for tariffs that had been paid. All of the states that filed for suit were dismissed from the case for a lack of standing (with the exception of Washington, which had paid tariffs for imported goods through a university). The administration swiftly appealed and sought a stay of the ruling, fearing a wave of claims for Section 122 tariff refunds. The CIT denied that request, which was then appealed to the Federal Circuit Court of Appeals. The Federal Circuit is likely to issue a ruling soon on whether they will pause the CIT’s ruling while the appeals process plays out or require that the plaintiffs be refunded imminently. If the Federal Circuit denies the stay, many companies may file claims in the CIT to seek refunds and prevent the further collection of Section 122 tariffs. It is also possible the administration could seek emergency relief from the Supreme Court if the Federal Circuit denies the stay.

PeopleForBikes will continue to monitor developments in this case and advise members of any opportunity to recover duties paid under Section 122.

What Comes Next

The next several weeks and months will be pivotal for bicycle importers, suppliers, and retailers as Section 122 tariffs expire and new tariffs are put into place. There are several opportunities for the industry to again participate in the public comment process and influence the outcome of these various tariff actions. The PeopleForBikes team is working to further understand these developments, create a responsive strategy, and engage our members in executing that strategy.

Recent experience proves that coordinated industry engagement will be essential to ensure the interests of the U.S. bike business are represented and that policymakers understand the potential impacts of these tariff actions on supply chains, affordability, and consumer access to bicycles and e-bikes. PeopleForBikes was able successfully fight off new Section 232 steel and aluminum tariffs, potentially the biggest trade win for the bicycle industry in decades. That was possible only with the strong participation of industry members and partners. We are hopeful that, with your continued help, we can ward off another significant trade threat to the U.S. bicycle industry.

May 12 Update

Section 122 Tariffs Declared Invalid

On May 7, the U.S. Court of International Trade (CIT) issued an opinion and judgment that the 10% Section 122 tariffs declared by the administration on February 20, 2026, are “invalid as contrary to law.” The Court granted summary judgment to two importers and the State of Washington and ordered that all Section 122 tariffs collected from them be refunded. Unlike the recent IEEPA litigation where all importers were granted relief, the Court declined to issue a broad “universal” injunction covering all importers and entries that are or will be subject to Section 122 tariffs.

What Does This Mean For the Bike Industry?

The administration already filed a notice of appeal with the Court of Appeals for the Federal Circuit and it may seek appellate review with the Supreme Court. The administration also requested that the CIT stay the judgment (or place it on hold) pending appeal, which will likely be granted by either the CIT or an appellate court. Because the decision and relief granted was limited to just three importers involved in the case, there is no present right for other importers to obtain refunds. Section 122 tariffs are set to expire on July 24, but in the meantime U.S. Customs will continue to collect the 10% duty on essentially all imports despite the Court’s order. As with the IEEPA tariffs, members will need to wait and see how the case unfolds in the courts before being able to pursue any potential refunds. Members and their brokers should actively track all entries that were assessed a 10% Section 122 tariff in case refunds do become available in the future and file any necessary protests to protect their right to any refunds. While any importer could file a similar case with the CIT today based upon the finding that the Section 122 tariffs were invalid, that expense may not ultimately be necessary. Members should consult with their trade counsel for advice on their specific circumstances.

PeopleForBikes Testifies at Section 301 Hearing

On May 8, PeopleForBikes Director of Federal Policy Chris Bell testified at the U.S. International Trade Commission before an interagency panel led by the U.S. Trade Representative (USTR) on the Section 301 excess production capacity investigation. His testimony was in support of a previously submitted comment explaining that the U.S. bicycle industry is not adversely affected by any excess capacity issues and that capacity shifts in various source countries resulted from shifted production from China in response to Section 301 tariffs and government policy. Mr. Bell urged the USTR to consider more narrow actions under Section 301 as well as targeted relief for bicycle products from any additional tariffs that may result from this investigation. Decisions on whether to put additional tariffs in place under this Section 301 proceeding, as well as the second Section 301 investigation regarding the adequacy of responses by trading partners to forced labor practices, are expected sometime in June. PeopleForBikes will advise our members as these expected new tariffs unfold.

“In deciding not to enact new steel and aluminum tariffs on the bicycle industry under Section 232, we thank the administration for taking a thoughtful approach to crafting a policy that keeps bikes affordable for Americans,” said Jenn Dice, president and CEO of PeopleForBikes. “We are advocating for the administration to take a similar approach in the forthcoming Section 301 investigations to protect the U.S. bicycle industry, grow American jobs, and allow us to expand domestic bicycle production and assembly."

After the last Section 301 investigation, PeopleForBikes secured several exclusions for the bicycle industry, resulting in hundreds of millions of dollars saved for industry brands and manufacturers.

PeopleForBikes continues to connect with policymakers and advocate for no additional tariffs on the bicycle industry as well as a transparent exclusion process. Here’s how you can help:

• Contact your members of Congress and share the impact that additional tariffs would have on your business.
• Request a meeting with your members of Congress to highlight the impacts of tariffs on bike businesses and discuss how your elected representatives plan to keep bikes affordable.
• Invite your members of Congress to visit your facility.

PeopleForBikes is here to help. Contact Director of Federal Policy Chris Bell, at chris@peopleforbikes.org for more information.

April 13 Update

IEEPA Tariff Refunds Are Almost Here

On April 10, U.S. Customs and Border Protection (CBP) announced it will begin accepting IEEPA tariff refund requests through a new automated process starting April 20, 2026. The Consolidated Administration and Processing of Entries (CAPE) within the Automated Commercial Environment (ACE) is meant to streamline the submission and processing of valid IEEPA refund requests. Importers can expect that valid IEEPA refunds will generally be issued within 60–90 days following acceptance of a CAPE declaration. The official announcement with relevant details for importers can be found here.

In Phase 1, importers can request refunds on:

• Certain unliquidated entries
• Entries liquidated within the past 80 days (on or after January 30, 2026)

Phase 1 does not cover:

• Reconciliation entries or flagged entries
• Drawback claims
• Entries under active protest
• Non-ACE entries
• Entries subject to AD/CVD
• Entries liquidated more than 80 days ago

While CAPE creates a new path to receiving refunds, it does not change your legal rights or deadlines. PeopleForBikes strongly recommends that companies file protests on applicable entries (ideally after the 80-day liquidation window) and evaluate litigation options ahead of the February 2027 deadline.

This is a meaningful opportunity to recover duties paid on many entries, but not a complete solution. Most companies are unlikely to recover all IEEPA tariffs through Phase 1 alone, so it’s critical to pursue refunds through CAPE and take steps to preserve your legal rights. For specific questions regarding your legal position and your entries, please consult with your trade counsel or customs broker.

PeopleForBikes will continue to monitor implementation of the IEEPA refund process and provide updates when available. As always, if you have any questions or are in need of support navigating this process, please reach out to PeopleForBikes Vice President of Government Relations Dr. Ash Lovell (ash@peopleforbikes.org) or General and Policy Counsel Matt Moore (matt@peopleforbikes.org).

April 3 Update

Bicycle Industry Successfully Opposes New Steel and Aluminum Tariffs

Yesterday, the president announced that the bicycle industry will not be subject to new Section 232 steel and aluminum tariffs.

Since October, PeopleForBikes and our members have taken action against two requests to add a 50% tariff to the steel and aluminum content of all bicycles, e-bikes, and frames. By mobilizing our industry, forming coalitions with key partners, and developing a strategic messaging campaign to communicate the harmful effects of these tariffs, the bike industry filed more than 1,300 comments in opposition to this proposal — more than any other industry. PeopleForBikes also worked with key members of Congress and had several meetings with senior staff at the Department of Commerce to elevate our concerns to the most important policymakers. After months of deliberations, the administration issued that there will be no new tariffs on bikes and a removal of existing steel tariffs on e-bikes.

While the structure of the revised Section 232 tariffs are complex and exact tariff rates will be variable based upon the origin and source country of the steel, aluminum, and copper used to manufacture a product, none of the complex entry documentation associated with those determinations now applies to any core complete bicycle or e-bike HTS categories.

Pending Section 232 Inclusion Requests

The inclusion request process to add derivative steel and aluminum products to Section 232 tariff actions was completely terminated. This means that the two pending requests by Guardian Bikes and the Aluminum Extruders Council will not be granted. There will not be future rounds of inclusion requests. Instead, the Secretary of Commerce and U.S. Trade Representative are authorized to monitor imports, periodically assess the progress of Section 232 tariffs towards achieving their stated goals, and consider input from trade groups and other stakeholders in determining whether additional derivative products need to be added or tariffs adjusted.

Bicycles, e-bikes, and frames will not be added as derivative products to the Section 232 tariffs on steel and aluminum at this time, and importers will therefore not have to determine the metal content of these products and pay additional tariffs on that content.

Removal of Certain Derivative Products

The president also determined, based on information and advice from the Secretary of Commerce, that certain products listed on Annex II should be removed from the list of derivative products previously added to the Section 232 tariffs. Products of relevance to the bike industry include:

Remaining Products Subject to Section 232 Steel Tariffs

Derivative products listed in Annex I-A and I-B will be subject to either a 50% tariff (Annex I-A) or a 25% tariff (Annex I-B). There are some exceptions for products from the UK or other trading partners that have reached or will reach a reciprocal trade agreement with the United States and are made with U.S.-origin metal or metal sourced in that country. Manufacturers should review these annexes and consult with their customs brokers or trade counsel to determine whether their imported products remain subject to applicable Section 232 tariff rates. Products of obvious relevance to the bicycle industry include:

You can read the proclamation here and the annexes here.

These changes will go into effect on April 6, 2026. It is likely that a Federal Register notice and changes to the HTS tariff code to effectuate this proclamation will be published on April 3 or shortly thereafter.

PeopleForBikes extends our sincere gratitude to our members for their extraordinary engagement in these recent Section 232 tariff relief efforts. Your collective action sent a clear and powerful message about the real consequences these proposed tariffs would have on businesses, workers, and riders nationwide. Your voice made a meaningful impact, and this level of unified advocacy continues to be critical as we work together to protect the future of the bicycle industry.

We will send more information about the Section 301 tariff process next week. As always, please reach out to PeopleForBikes Vice President of Government Relations Dr. Ash Lovell (ash@peopleforbikes.org), Policy Counsel Matt Moore (matt@peopleforbikes.org), or Director of Federal Policy Chris Bell (chris@peopleforbikes.org) with any questions.

March 12 Update

New U.S. Trade Investigations Could Lead to Additional Tariffs

The U.S. Trade Representative launched a new round of trade investigations that could pave the way for additional tariffs affecting imports from major trading partners. The investigations, initiated under Section 301 of the Trade Act, are targeting issues such as industrial overcapacity and government subsidies across countries including China, the European Union, Japan, Taiwan, Cambodia, Vietnam, Malaysia, India, Indonesia, Malaysia, South Korea, and Mexico. The Federal Register notice of these investigations can be found here. The notice does not identify specific product categories that might be subject to new Section 301 tariffs, nor does it provide potential tariff rates.

These actions come as policymakers look for new legal pathways to impose tariffs after the Supreme Court recently struck down parts of the administration’s earlier IEEPA tariff program. Officials say the investigations could conclude within several months and may lead to new duties designed to replace temporary tariffs currently in place.

Why This Matters for the Bicycle Industry

For companies across the bicycle supply chain, these developments signal continued volatility in U.S. trade policy. These new tariff actions targeting major manufacturing economies could have ripple effects on costs, sourcing strategies, and supply chains.

What to Watch

The investigation topic relates to whether the listed countries have structural excess capacity and production in various manufacturing sectors, potentially including bicycles. In the coming months, the investigations will include public comment periods and hearings before any tariffs are finalized. Potential outcomes could include:

• Additional tariffs imposed on imports from major bicycle manufacturing regions
• Existing temporary tariffs may be extended or replaced with longer-term measures
• Enforcement around supply chains and manufacturing capacity may evolve

When New Tariffs Could Go Into Effect

It is not certain exactly when new Section 301 tariffs might take effect, but it will not be until at least May 2026, likely later. USTR will open a public comment period until April 15, 2026, convening with a live hearing on May 5, 2026. An additional seven days will be provided for post-hearing comments. It will likely take USTR several weeks or months following the hearing to issue a final report.

What PeopleForBikes is Doing

The Section 301 process includes opportunities for public comment and testimony. The PeopleForBikes policy team is organizing a strategy around how to best engage in that process to protect the U.S. bicycle industry’s interests. We are engaging with federal policymakers and trade experts while continuing to keep our members informed as the situation develops. We will also be monitoring how this investigation impacts existing bilateral trade deals and will provide updates as the investigation moves forward.

February 20 Update

Supreme Court Rules in Bike Industry’s Favor Regarding IEEPA Tariffs

On February 20, the U.S. Supreme Court ruled 6–3 that the sweeping global import tariffs imposed under the 1977 emergency powers law (IEEPA) were unlawful, determining that the president exceeded his authority by using the statute to unilaterally impose broad tariffs on imports from nearly all U.S. trading partners. The Court affirmed the judgment of the Court of International Trade in Trump v. V.O.S. Selection, a case brought by 12 states and five small companies, including Terry Precision Cycling, a Vermont-based bicycle clothing company.

This decision represents a significant check on executive tariff authority and will shape presidential tariff policy going forward. It’s important to note that while this ruling removes a key legal basis for IEEPA tariffs, it does not affect tariffs imposed under other legal authorities, including Section 232 and Section 301 tariffs. While it is anticipated that billions of dollars in duty collected under IEEPA will be refunded to importers, the process and timetable for that to happen is not yet clear.

As your trade association, PeopleForBikes is actively advocating to reduce and eliminate tariffs affecting our industry. We remain committed to advancing fair, pro-industry trade policy. With your support, we will continue this essential work.

The IEEPA ruling will likely encourage the administration to pursue alternative sources of tariff revenue. PeopleForBikes is actively pushing back against the proposed inclusion of bicycle and e-bike HTS codes under Section 232 tariffs. In the coming weeks, the Commerce Department will decide which products will be added under the latest round of tariff inclusion requests. Our industry has submitted more comments in opposition than any other industry, and federal leadership understands there is significant opposition to these proposed tariffs.

The most effective action you can take right now is contacting your members of Congress and telling them how harmful Section 232 tariffs would be for your business. Lawmakers need to hear directly from businesses in their districts about the jobs, economic impact, and consumer consequences at stake. If you don’t already have contact information for your members of Congress, please contact PeopleForBikes Director of Federal Policy Chris Bell at chris@peopleforbikes.org. When you contact your members of Congress, feel free to use PeopleForBikes’ Section 232 talking points to discuss the negative impacts of these proposed inclusions on your business.

PeopleForBikes will continue to monitor developments and assess how the Supreme Court’s ruling might intersect with other ongoing tariff issues that impact bicycle imports and supply chains.

If you have questions about what this latest news means for your business, please don’t hesitate to reach out to PeopleForBikes Vice President of Government Relations Dr. Ash Lovell (ash@peopleforbikes.org) or General and Policy Counsel Matt Moore (matt@peopleforbikes.org).