Some bikes benefit from a 25% price reduction

DANA POINT, Calif. BRAIN) – With consumer demand falling, inflation rising and stimulus funds drying up, Wednesday’s announcement that many Chinese bikes will be exempt from a 25% tariff was timely.

So said Mike O’Gara, senior vice president of Huffy Corp., at the PeopleForBikes Bicycle Leadership Conference.

“The fare giveaway couldn’t have come at a better time for us,” O’Gara said.

The Office of the U.S. Trade Representative reinstated 352 expired product exclusions on Wednesday, affecting bicycle products from China that have been subject to a 25% U.S. Section 301 tariff since January 1, 2021, the date at which the previous exclusion expired.

Some of the exemptions include children’s bikes – bikes with wheels 20 inches and under and bikes with 24 inches – e-bikes, carbon fiber frames (valued at $600 or less), certain helmets, bike trailers, messenger bags and certain other products.

Most bicycle products from China have been subject to a 25% tariff under Section 301.

“This is amazing news,” Specialized Bicycles Executive Vice President Bob Margevicius said, announcing the news to cheers before hosting a panel on supply chain management at BLC. O’Gara was among the panel members.

The reinstated product exclusions are effective retroactively from Oct. 12, 2021, and extend through Dec. 31, 2022, the bureau said. They cover much of the originally estimated $370 billion in Chinese imports that then-President Donald Trump hit with tariffs of 7.5% to 25%.

Other affected products are pumps, electric motors, certain auto parts and chemicals, backpacks, vacuum cleaners and other consumer goods.

In February, a bipartisan group of U.S. senators called on the Biden administration to establish a “more comprehensive” process to exclude certain products from Section 301 tariffs on certain products from China.

The administration reignited a debarment process in October 2021 when Katherine Tai of the USTR began considering whether to reinstate the 549 debarments to question China over its business practices.

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