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February 1, 2025

Trump Administration Imposes New Tariffs Affecting the Bike Industry

By: Matt Moore, policy counsel

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New 10% tariffs on China, as well as a 25% tariff on goods imported from Canada and Mexico, were imposed on February 1.

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.

Related Topics:

Trade and TariffsBike Business
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