2025 BIKE INDUSTRY TRADE AND TARIFF UPDATES

Bicycles and E-Bikes Left Off China Tariff Relief List

Last week, the U.S. hosted President Xi Jinping of China for an official state visit in Washington, D.C. The visit resulted in several trade-related updates. Most notably, the administration released the results of the U.S.-China Board of Trade review on September 27, including a list of products imported from China recommended for consideration for future tariff relief. Bicycles, e-bikes, and bicycle parts are not on the list.

The U.S.-China Board of Trade is a forum created in 2026 to manage trade issues between the two countries. In June 2026, the U.S. Trade Representative (USTR) requested comments to help the board identify non-sensitive products fit for potential tariff modifications. PeopleForBikes submitted a comment recommending bicycles, e-bikes, and bicycle parts for relief.

The administration published the results of the review on September 27, including a list of Chinese products and a list of American products recommended for future tariff relief. The lists are mutually agreed upon, each totaling about $30 billion. The U.S. list names 77 tariff lines of Chinese products recommended for reduced tariffs. The list does not include the tariff codes for bicycles (HTS 8712), e-bikes (HTS 8711), or bicycle parts and accessories (HTS 8714). It focuses on low-value consumer goods such as fireworks, Christmas ornaments, small household appliances and products, and children’s toys.

One line may matter to some PeopleForBikes members: HTS 9503.00.00 covers tricycles, scooters, and similar wheeled toys. Items with radio frequency, Wi-Fi, Ethernet, or Bluetooth connectivity are excluded.

The publication of these lists did not actually result in current specific tariff reductions or relief. The two countries may instead consider these products for reduced tariffs under their own domestic processes. The release does not set new rates or effective dates. Ambassador Greer previously indicated that relief under the U.S.-China Board of Trade would take the form of exclusion from future tariffs, so PeopleForBikes expects the listed products may be excluded from the upcoming Section 301 Excess Capacity tariffs. Near-term adjustments to this list are unlikely, though it is possible the board may consider changes on an annual basis.

U.S.-China Trade Truce Extended to January

After President Xi Jinping’s visit to Washington last week, the U.S. and China extended the trade truce previously struck in Busan, South Korea, in October 2025. The “Busan Agreement” was previously set to expire in November, and the two countries have now extended it until January 2027. The USTR said it will assess U.S. policy toward China over the next few months. This review could bring changes to the 2018 Section 301 tariffs on Chinese goods. PeopleForBikes is watching for news and updates by January.

China’s Excess Capacity Tariff Expected at 7.5%

The USTR has not yet finalized the results of its Section 301 Excess Capacity investigation. Those results are likely to be released in the coming weeks, likely in the form of additional tariffs on key bicycle industry source countries.

PeopleForBikes expects a 7.5% Excess Capacity rate for China, in line with the terms of the truce in the Busan Agreement. A 7.5% rate would bring China's combined rate under the new Forced Labor and Excess Capacity tariffs to 20%. These new tariffs are in addition to base tariff rates and any previously imposed Section 301 tariffs, which remain in place.

Please contact the PeopleForBikes team with any questions about how these changes may affect your business.

U.S. Trade Representative Announces New Section 301 Forced Labor Tariffs

On July 23, the U.S. Trade Representative (USTR) announced it concluded its Section 301 Forced Labor investigation and would implement sweeping new tariffs as a result. New tariffs went into effect at 12:01 a.m. ET on July 24, just after existing 10% Section 122 tariffs expired. The Federal Register notice can be found here.

As expected, the tariffs cover 60 countries, including every major bicycle industry source country, applying to 99% of U.S. imports. In most cases, new tariffs of either 10% or 12.5% will replace the expiring 10% Section 122 tariff. However, there are new limitations on the degree to which the new Section 301 Forced Labor tariffs can “stack” upon other tariff rates for certain countries. This will provide meaningful tariff relief for bicycle products from some key nations.

10% Section 301 Forced Labor Tariff Countries: Cambodia, Canada, European Union, Indonesia, Malaysia, Mexico, Taiwan, United Kingdom 

12.5% Section 301 Forced Labor Tariff Countries: China, Japan, Philippines, Thailand, Switzerland, Vietnam 

The notice does not provide broad product exclusions for bicycle products. The notice only lists 471 broad-based product exclusions that apply to all countries. These exclusions were for security sensitive products, as well as agricultural products, textiles, chemicals, and machinery. There were essentially zero exclusions for finished consumer products.

PeopleForBikes Secures Limited Relief for Products from Taiwan, the European Union, Japan, and Switzerland  

In good news for the bicycle industry, USTR provided tariff relief for countries with trade agreements with the United States, including important bicycle industry source countries: Taiwan, the European Union, Japan, and Switzerland. For these countries, USTR instituted a “net MFN” tariff rate, wherein the existing Most Favored Nation (MFN) tariffs and new Section 301 Forced Labor tariffs will only stack up to a “cap” of 10% or 12.5% depending on the country. 

Tariff caps for countries with trade agreements is a form of tariff relief that PeopleForBikes specifically requested from USTR in our comments. We believe this will bring meaningful relief to the industry and reduce tariff costs relative to the prior Section 122 tariffs.

Capping tariff rates for countries with trade agreements is potentially an important indicator of the path forward. As the administration continues to implement aggressive trade policies in pursuit of negotiating deals with other nations, the benefit of a tariff cap may encourage more nations to reach trade agreements with the United States — which could bring similar forms of tariff relief for the bicycle industry. 

The prior Section 122 tariffs included no internal mechanism to cap rates. All tariffs were added onto the existing MFN rate (unless capped for a different reason). 

PeopleForBikes put together the chart below to capture how new tariffs affect the bicycle industry. 

Example Tariff Rates for Bicycle Industry Products 

Taiwan | Kids Bikes/Mountain Bikes/Gravel Bikes

Does MFN rate exceed Forced Labor rate? Yes

Will Forced Labor tariff be added to MFN? No

New combined MFN and Forced Labor tariff rate: 11% (11% MFN + 0% Forced Labor)

Change from MFN + Section 122 tariffs = -10%

Does MFN rate exceed Forced Labor rate? No

Will Forced Labor tariff be added to MFN? Yes, up to 10%

New combined MFN and Forced Labor tariff rate: 10% (5.5% MFN + Partial 4.5% Forced Labor rate) 

Change from MFN + Section 122 tariffs = -5.5%

New combined MFN and Forced Labor tariff rate: 10% (0% MFN + Full 10% Forced Labor rate)

Change from MFN + Section 122 tariffs = 0%

*These examples only reflect the interaction of MFN rates and new Forced Labor Section 301 rates under the terms of the Forced Labor Section 301 ruling and do not account for further modifications that might occur via future trade agreements.

Litigation: It is likely these new tariffs will face litigation. PeopleForBikes will keep our members updated on major developments. 

Excess Capacity Investigation: USTR still has yet to conclude its Section 301 investigations into Structural Excess Capacity and Overproduction. The end result of this investigation will likely be more sweeping tariffs, and we expect USTR to provide an update in the coming weeks. 

Vietnam Investigation: USTR has also not yet concluded its Section 301 investigation into Intellectual Property Protections in Vietnam. The result of this investigation may be additional tariffs on products from Vietnam. 

PeopleForBikes will continue to advocate for tariff relief for the bicycle industry and provide additional updates and analysis. 

If you have any questions, please contact PeopleForBikes Director of Federal Policy Chris Bell (chris@peopleforbikes.org) or General and Policy Counsel Matt Moore (matt@peopleforbikes.org). 

Own Your Backyard: Meet Your Members of Congress During the August 2026 Recess 

Every August, members of Congress return from Washington, D.C., to their congressional districts to meet with constituents. This is a great opportunity to contact your representatives and senators and have them meet with you and your employees, visit your facility or shop, and learn about the issues that matter to the bicycle industry and your business. 

Doing so is easy: choose a date, send an email, and share your story. 

PeopleForBikes put together talking points to help you own your backyard and engage with your members of Congress. 

1. Find out who represents your business in Washington by entering your address information on house.gov. 

2. Identify a date and time that works best for you. The office will offer alternatives if need be. You can plan for a 30-minute to 1-hour meeting, but the office will likely respond with a narrow window. 

2026 Bike Industry Trade and Tariff Updates

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2026 Bike Industry Trade and Tariff Updates

September 28 Update