May 12 Update

U.S. and China Reduce Reciprocal Tariff Rates for 90 Days During Negotiations

On May 12, the United States and China issued a joint statement announcing their agreement on a 90-day pause on most of the tariffs imposed on each other during the last month. For the next three months, the combined U.S. additional tariff rate on imports from China will be cut to 30% from 145% while China’s levies on U.S. imports will be cut to 10% from 125%.

While this is positive news, the total import tariff on most bikes from China remains at 66% due to previously imposed tariffs. The 66% import tariff is calculated by combining the 11% base duty, 25% Section 301 tariffs, 20% fentanyl tariffs, plus the newly announced 10% reciprocal rate. Electric bicycles will have a 55% duty and most bicycle parts/components will have a 55–65% duty. 

These tariffs remain at an unsustainable level for the U.S. bicycle industry. While the conversations between the U.S. and China show signs of progress, the current tariffs are still broadly higher compared to tariff rates before Trump took office. These tariff levels are unlikely to stimulate imports or support U.S. manufacturers and consumer goods will likely continue to see price increases.

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April 29 Update

On April 7, an executive order on reciprocal tariffs was published in the Federal Register. Because the order contains specific provisions related to reciprocal tariffs, companies should review the official version of this executive order.

On April 8, the administration announced a complete three-month pause on all “reciprocal” tariffs that went into effect at midnight, with the exception of tariffs on China. This means that the implementation of reciprocal tariffs will not go into effect until July 9, 2025. Related to China, the administration increased tariffs to 125% from 104% after China announced additional retaliatory tariffs against the United States. With the previous 20% tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the total new tariffs on Chinese goods is at least 145%, not including base duty rates and any previously imposed Section 301 tariffs. All other countries that were subjected to increased reciprocal tariff rates will see those rates return to the universal 10% additional tariff rate until July 9.

Multiple lawsuits were filed challenging the president’s authority to impose tariffs on China under the IEEPA. One suit was filed by the New Civil Liberties Alliance in U.S. District Court in the Northern District of Florida. A copy of the complaint is available here. On April 16, California became the first state to sue over the administration’s tariffs. On April 23, 12 states sued the administration in the U.S. Court of International Trade, alleging that the administration lacked the authority to impose tariffs under the IEEPA and that the tariffs are unlawful and brought chaos to the American economy. PeopleForBikes is monitoring this litigation and will update this blog with any important developments.

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APRIL 4 UPDATE

Administration Clarifies Reciprocal Tariff Implementation

On April 4, the Trump administration published a full, 62-page version of the executive order on reciprocal tariffs that now includes an Annex III with formal modifications to the Harmonized Tariff Schedule (HTS) tariff code. The notice clarifies that the new 10% and per-country reciprocal tariffs are in addition to existing base tariffs on imported goods. For example, a bicycle that is imported from Taiwan will have a total tariff of 43% (11% base duty + 32% reciprocal tariff).

Updated targeted tariff rates for key source countries for the U.S. bicycle industry:

Exemptions for Shipments Loaded Before 12:01 a.m. EST on April 5, 2025

The revised executive order further clarifies that the 10% additional tariffs on all countries will not apply to “goods loaded onto a vessel at the port of loading and in transit on the final mode of transit or withdrawn from a warehouse for consumption” before April 5, 2025. Shipments that meet these requirements prior to April 9 will not be subject to reciprocal tariffs.

NEW TARIFFS FAQ

Lawsuit Filed to Halt Reciprocal Tariffs

A lawsuit has been filed in federal court in Florida in an effort to halt the new tariffs. Additional lawsuits may also be filed in the coming days. This follows a now familiar pattern of pushback against the administration’s new policies. PeopleForBikes will monitor this litigation as it progresses and update our members as new information becomes available. 

PeopleForBikes hosted a webinar for members of the bicycle industry on April 3 covering the new tariffs. You can access the webinar presentation below. Another webinar on trade and tariffs will take place on April 29 exclusively for PeopleForBikes Coalition members.

ACCESS THE PRESENTATION SLIDES

BECOME A PEOPLEFORBIKES COALITION MEMBER

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APRIL 3 UPDATE

Trump Administration Announces Reciprocal Tariffs; End of De Minimis for Chinese Imports

On April 2, the Trump administration announced new reciprocal tariffs under the International Emergency Economic Powers Act of 1977 (IEEPA). This imposes an additional 10% tariff on products from all countries (base duty plus 10%) as well as specific, targeted higher base tariff rates on all goods from select countries the administration determined impose high tariffs and related barriers or costs — such as Value Added Tax (VAT) — on U.S. goods. Canada and Mexico were exempted from the new tariffs as they are currently subject to existing 25% tariffs.

Targeted tariff rates for key source countries for the U.S. bicycle industry:

A list of countries targeted for specific new tariff rates and the applicable rates are listed in Annex I of the executive order. The additional 10% tariffs will go into effect on April 5 at 12:01 a.m. EDT for all countries and the new targeted base tariffs will take effect on April 9 at 12:01 a.m. EDT. Neither tariff will apply to goods loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to the respective effective date/time.

Future Tariffs for Countries That Import Oil From Venezuela

In previous updates, we informed you of potential new 25% tariffs on countries that the Secretary of Commerce determines have imported oil from Venezuela, most likely including China. These tariffs can be put into place at any time, and would be in addition to the new reciprocal tariffs. This could increase tariffs on Chinese goods by an additional 25%. The exact timing of these tariffs is uncertain and at the discretion of the Secretary of Commerce.  

The above analysis is based on the most current information available at the time of release (April 3, 2025). More specific information contained in annexes to the executive order and Federal Register notices are not yet available. It is possible that future actions by specific countries may result in the reduction — or increase — of these tariffs. PeopleForBikes will continue updating our members as further information becomes available.

De Minimis for Chinese Imports Ends May 2

In a second executive order, the administration announced that systems are now in place to collect duty on low-value shipments from China that previously received duty-free de minimis treatment. Accordingly, de minimis treatment for imports from China and Hong Kong valued at or under $800 will end on May 2. There will be two different processes depending on whether goods enter through postal shipment or through other carriers:

• Goods sent through the international postal network will be subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). Customs and Border Patrol (CBP) may require formal entry for any postal package instead of these specified duties.

• Goods sent through means other than the international postal network will be subject to all applicable duties, which will be collected under applicable entry and payment procedures.

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MARCH 25 UPDATE

Trump Administration Announces New Venezuelan Oil Tariff

On March 24, the administration issued an executive order directing the imposition of a 25% tariff on all products imported into the United States from countries that buy oil imported from Venezuela. The tariffs are being imposed under the International Emergency Economic Powers Act (IEPPA) based on several previous declarations related to Venezuela. While the exact details are yet to be confirmed, here is what we know about these new tariffs: 

• The tariffs will take effect “on or after April 2, 2025.”
• They will be “supplemental to duties on imports already imposed,” meaning they will be in addition to all other existing tariffs.
• The Secretary of State will have the discretion to determine which countries are importing Venezuelan oil and therefore be subject to the tariffs.
• The tariffs can be removed in the future, but will remain in effect for one additional year after the Secretary of Commerce determines that a country no longer sources oil from Venezuela

According to a 2024 report from the U.S. Energy Information Administration, the countries (other than the United States) that bought oil from Venezuela in 2023 and their share of those exports are:

1. China (68%)
2. Spain (4%)
3. Cuba (4%)
4. Singapore (1%)
5. Malaysia (.3%)
6. Vietnam (.01%)

These tariffs are primarily directed at imports from China, and they will be in addition to all other current tariffs (base tariff, 25% Section 301 tariff, 20% additional tariffs, and 25% steel and aluminum tariffs on some products). This means that after April 2nd, the total tariff on adult bicycles imported from China will be 81% and the tariff on e-bikes will be 70%.

Whether any other countries currently import Venezuelan oil, and will therefore be subject to an additional 25% tariff on exports to the United States after April 2, will be determined by the administration, and we expect future publication of notices with specific findings and actions. 

This analysis is based on the most current information available at the time of release (March 25, 2025). In recent weeks, the administration has announced new tariffs, then altered course prior to their implementation. PeopleForBikes will continue to update the industry as further information becomes available.

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FEBRUARY 28 UPDATE

On February 27, the Trump administration announced it would advance the previously paused 25% tariffs on all imports from Canada and Mexico effective March 4. The administration also promised to levy an additional 10% tariff on all Chinese goods starting the same date. The new tariffs are based on previously issued executive orders intended to address illegal immigration and fentanyl smuggling.

The newly announced 10% tariffs on all imports from China are in addition to Section 301 tariffs that began in 2018 and an earlier 10% additional tariff on Chinese goods. Unless another last-minute reprieve is announced, most bicycles made in China will soon face a base duty of 11%, Section 301 tariffs of 25%, and new tariffs of another 20% for total import duties of 56%. With the additional 10%, the total tariff on electric bicycles imported from China will have risen from zero (duty free) to 45% since June 2024. Bicycle components and accessories from China will have duty costs in the same range, depending on applicable base duty rates and Section 301 duties.

PeopleForBikes reviewed media reports of conflicting or contradictory statements by administration officials, and while the administration has consistently advanced broad policies of increasing tariffs and these announcements must be taken seriously, the actual implementation of tariffs has varied from initial plans. Negotiations with Canada and Mexico are ongoing, and it's possible these tariffs could be further delayed, reduced, or limited in scope either before or after March 4. The implications of ongoing uncertainty in the global trade environment for the bicycle industry continue to be both profound and worrisome. 

The administration also announced its intent to pursue reciprocal tariffs, which are currently being studied by the Office of the United States Trade Representative (USTR). The agency’s report is due to the president by April 1, 2025. The administration said these reciprocal tariffs on all goods from all affected countries could go into effect as early as April 2. Because of the massive scope of these proposed tariffs and the likelihood that other countries will adjust their tariff rates to avoid reciprocal tariffs, actual implementation by U.S. Customs and Border Protection may require additional time.

PeopleForBikes remains committed to advancing favorable trade policies on behalf of the bike industry, including advocating for an exclusion process to obtain select relief from the newly enacted tariffs. While the administration has been clear up to this point that no exclusions will be granted when tariffs are enacted, legislators on both sides of the aisle understand the damaging effects these tariffs will have on businesses across the country. If the tariffs are effective in achieving the administration’s stated goals, there may be future opportunities for such relief. In the near term, however, that appears unlikely.

In response to urgent tariff developments, PeopleForBikes convened industry leaders in Washington D.C. from February 24-25 to meet with Democratic and Republican legislative staff and discuss trade and tariff challenges. We repeatedly heard that the most effective course of action is to write to your congress member and share how these tariffs and ongoing trade uncertainty are hurting your business. If you are interested in writing to your representatives on behalf of your business, please contact PeopleForBikes Vice President of Government Relations Dr. Ash Lovell at ash@peopleforbikes.org for more information.

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FEBRUARY 1 UPDATE

On Inauguration Day, President Trump issued a Memorandum titled the “America First Trade Policy.” The order directed several federal agencies to undertake comprehensive reviews of U.S. trade policy and all trade agreements as well as investigate adverse actions by other countries. These agencies are to report their findings and recommendations for actions to the president by April 1, 2025. The stated goal of the administration is to enact trade and economic policies “that put the American economy, the American worker, and our national security first.”

On Saturday, February 1, President Trump took the first steps toward this goal by issuing three executive orders imposing new 25% tariffs on all products from Canada and Mexico and a new 10% tariff on Chinese products. Here are the key features of the new tariffs:

• The tariffs go into effect at 12:01 a.m. ET on Tuesday, February 4, 2025
• The tariffs apply to all goods with a country of origin of Canada, Mexico, or China
• There is a limited exception for goods “in transit” before February 1, 2025
• The only goods excepted are oil and energy from Canada, which have a 10% tariff
• There is no exclusion process 
• These tariffs are in addition to all tariffs currently in place (including existing Section 301 tariffs on Chinese-origin goods)
• Duty drawback cannot be claimed on these additional tariffs (duty cannot be recovered on goods imported into the U.S. and then exported)
• The Canadian government outlined retaliatory 25% tariffs on more than $100 billion U.S. goods to be implemented starting February 4. The full list of products covered under the Canadian tariffs can be found here.
• Mexico is expected to unveil their tariff response measures on Monday, February 3. 
• China also threatened countermeasures including filing a legal case at the World Trade Organization (WTO).
• Imports from China, Canada, and Mexico are no longer eligible for de minimis entry into the U.S. as of Tuesday, February 4.

A Federal Register notice will be published by U.S. Customs adding the new tariffs to the Harmonized Tariff Schedule (HTS). It is unclear how the new tariffs on hundreds of thousands of small shipments valued at under $800 that formerly entered under the de minimis exception will be collected.

These tariffs are being imposed under the International Emergency Economic Powers Act (IEPPA) based on Trump’s previous declaration of a national emergency. The new tariffs have no defined end date. Whether or when the tariffs will be reduced, removed, or increased is within the discretion of the president. While Congress could in theory remove the tariffs by joint resolution, that is unlikely.

The president stated that new tariffs on products from the European Union will also be imposed, perhaps as early as February 18.  

As a result of the new administration’s policies, the international trade landscape has become, and will remain, increasingly turbulent. PeopleForBikes recommends that bicycle manufacturers and importers review their supply chains and assess vulnerability to tariffs on imports from Canada, Mexico, and China. Manufacturers should also consider the likelihood that retaliatory tariffs may impact exports to these countries.

As the U.S. bicycle industry’s trade association, PeopleForBikes advocates for pro-bike business policies and regulations at all levels of government. Between 2018 and 2024, PeopleForBikes and our members successfully advocated for numerous exclusions from previous Section 301 tariffs on e-bikes, children’s bicycles, and other products, saving the industry hundreds of millions in duty payments. PeopleForBikes remains committed to advancing favorable trade policies on behalf of the bike industry including retroactive authorization of the Generalized System of Preferences (GSP). This legislation has bipartisan support in Congress and PeopleForBikes will continue supporting its passage. 

With these new tariffs in place, it is critical that executives and leaders across the bicycle industry work with PeopleForBikes to support outcomes that benefit bicycling and the bike business. If you have questions about the tariffs, or if you would like to discuss how to advocate effectively for your business, please contact PeopleForBikes Vice President of Government Relations Dr. Ash Lovell at ash@peopleforbikes.org for more information.