Representatives for the two global economic powers met in Geneva for a face-to-face discussion, where they agreed to a 90-day pause that will come into effect on Wednesday, 14 May. US tariffs on Chinese products will fall to 30%, while China's reciprocal tariffs will drop to 10%. The retaliatory trade war between the US and China has stoked industry-wide fears of the disruptions this dispute could cause to the bicycle supply chain, which is heavily reliant on Chinese manufacturing.
Hike in demand
The last few months have shown that the Trump administration's decisions will lead to a huge hike in demand for bicycles and components in China for delivery in the next 90 days and cancellation or postponement of orders in other countries like Taiwan and Vietnam. In a joint statement released by both countries on 12 May, the two emphasised the global importance of sustaining a mutually beneficial “bilateral economic and trade relationship.”
"The consensus from both delegations this weekend is neither side wants a decoupling," said US Treasury Secretary Scott Bessent after the Geneva meeting. "What had occurred with these very high tariffs was the equivalent of an embargo, and neither side wants that. We do want trade."
Rapidly changing landscape
Bicycle manufacturers and suppliers have suffered whiplash after Trump’s repeated reversals on reciprocal tariffs since he took office in January. On 9 April, Trump announced a 90-day pause on punishing reciprocal tariffs he had imposed mere hours before.
This caused a wave of panic and confusion felt especially by Taiwanese manufacturers, who said US customers immediately cancelled their shipments, only to reinstate them when the pause went into effect, according to AFP. While the initial shocking 32% tariff remains on pause, the 10% global levy is still in place and the whole supply chain remains in limbo.
March’s Taipei Cycle offered an early glimpse into this chaos as Taiwanese retailers reportedly considered production relocation and US visitors were in a rush to discuss a “Plan B.”
Bosch: tariffs primarily concerns bicycle brands
“We support the 90-day reduction in mutual tariffs between the US and China, which was announced by both sides,” writes Claus Fleischer, CEO Bosch eBike Systems in a first response to Bike Europe. “We are counting on political decision-makers to continue the dialogue in order to find a solution together in the current complex situation.” The company has been operating their own office in the US for 10 years.
“In general, Bosch eBike Systems is only indirectly affected by any US tariff regulations. Our eBike drive systems are supplied to bicycle manufacturers. Since US tariffs are typically applied based on the country of origin of the bicycle frame, the direct impact primarily concerns bicycle brands and assembly locations, not system component providers like us.”
US suppliers can’t sustain changes
While the pause offers some immediate relief to bicycle suppliers in the US, it’s already too late for some. Last week, Rotor America, the North American subsidiary of Spanish manufacturer Rotor Bike Components, announced its closure due to “ongoing tariff insecurity.” The small Utah-based team will continue shipping until June 15, when they will shut Rotor America’s doors for good. The pause announced from 14 May has no direct impact on the Rotor operation. “Our components are manufactured in Madrid, Spain, therefore, Chinese tariffs are not the primary concern,” said Lori Barrett, Rotor Bike Components managing director, to Bike Europe.
To illustrate the complexity of the current business landscape, Barrett, highlights the 20% tariff on products manufactured with Venezuelan oil as announced by the US President. “Since the Ukraine war and the German decision to wind down their nuclear program, some parts of Europe have been getting their oil supply from Venezuela. This adds up to the total costs of our production.”
Long-term investments are difficult
Though the company, which primarily produces power meters, cranksets and chainrings, has a 95% Europe-based supply chain, the increased tariffs on European imports and overall market uncertainty make long-term investment difficult.
Meanwhile, other retailers have notified their dealers of price increases. Specialized announced a 10% tariff surcharge visible to consumers at checkout, while Trek announced immediate price hikes on most of its lineup – including backordered bikes, according to Cycling Weekly.
Tariff relief for the bicycle industry
As a reaction to the growing strain on the industry, American Bicycle Trade Association PeopleForBikes is preparing a letter to US President Trump requesting tariff relief for the bicycle industry. The company warns that, without an exclusion like the one granted in the president’s last term, the industry will experience business closures and job losses.
“The current tariffs on complete bicycles and components used for assembly, imported from countries around the globe, will have devastating impacts on our industry if not adjusted in the near term," the letter states, in part.
PeopleForBikes also published an infographic which shows just how many countries are involved in the manufacturing and production of a bicycle and all its components.
