PeopleForBikes, the national trade association for the bicycle industry, supports the introduction of the bipartisan U.S. Bicycle Production and Assembly Act, a forward-looking bill designed to accelerate domestic bicycle manufacturing by removing key tariff barriers.

Introduced by Representatives Vern Buchanan (R-FL) and Mike Thompson (D-CA), both senior members of the House Ways and Means Committee and co-chairs of the Congressional Bicycle Caucus, this legislation will eliminate tariffs on imported bicycle components used in domestic assembly.

“This legislation supports American jobs, lowers costs for domestic producers, and makes it easier to build and assemble bikes in the U.S.,” said Jenn Dice, president and CEO of PeopleForBikes. “It’s a smart, targeted solution to a longstanding problem — how to grow U.S. bicycle manufacturing in the face of rising costs and global trade pressures.”

Clearing the Way for Domestic Bicycle Assembly and Manufacturing

Currently, companies producing and assembling bicycles in the U.S. face high tariffs on essential components — a significant barrier to domestic growth. This bill:

• Eliminates tariffs on bicycle components used specifically for U.S. assembly.
• Supports existing manufacturers and opens new opportunities for companies to begin producing bikes domestically.
• Exempts qualified imports from Section 301 and other punitive tariffs when used for complete bicycle production.
• Sets measurable goals to assemble 2 million bicycles annually in the U.S. within five years and 5 million bicycles annually within 10 years.

“This legislation will dramatically grow our domestic production footprint and provide meaningful incentives to increase the number of bicycles built in America,” added Dice. “We thank Rep. Buchanan and Rep. Thompson for their unwavering support of the bicycle industry and their innovative solutions to help create more certainty and growth for bike companies across the country.”

Bicycles Mean Business

The Bureau of Economic Analysis estimates that the bike industry contributes nearly $5.5 billion in gross domestic output as part of the broader $1.2 trillion outdoor industry, which employs more than 5 million Americans. The Outdoor Industry Association estimates cycling directly generates $100 billion in retail spending, supports nearly 1 million jobs, and provides $13 billion in state and federal taxes each year. 

As momentum builds to bring more manufacturing back to the U.S., this legislation gives bicycle companies the tools and certainty needed to invest in domestic production and meet growing demand for more people to enjoy the freedom and fun of riding a bike.

This legislation reflects months of collaboration and idea-sharing by members of PeopleForBikes’ Domestic Manufacturing and Supply Chain Committee, who worked together through multiple drafts and proposals to shape a policy that meets the real-world needs of U.S. bicycle companies. 

As the voice of the bicycle industry, PeopleForBikes continues to partner with lawmakers from both sides of the aisle to reduce harmful tariffs, advocate for a transparent exclusion process, eliminate de minimis loopholes that disadvantage domestic production, and advance meaningful incentives to grow U.S. bicycle manufacturing. The organization’s trade policy efforts also include supporting retroactive extensions of the Generalized System of Preferences to ensure a more stable and competitive business environment for all stakeholders in the bicycle industry.