U.S. E-Bike Supplier Rad Power Absorbs Trump Tariff by Raising Prices
SEATTLE, USA – Rad Power Bikes, a Seattle-based direct to consumer e-bike brand, announced yesterday how the company is to address the 25% tariff imposed by the U.S. government on electric bikes and component parts imported from China. The company that claims to North America’s largest electric bike company states that the tariff is “Going to hit nearly every U.S. electric bike company and threaten the future of sustainable transportation.”
“The electric bike movement is skyrocketing in the U.S. and has the true potential to improve our country’s environment and wellness,” said Mike Radenbaugh, Co-Founder and CEO of Rad Power Bikes. “We do not want to see the tariff slow down the momentum, so we’re being very transparent about how the industry is being impacted.”
Rad Power Bikes, along with the bike industry, fought to have e-bikes eliminated from the proposed tariff as it will not protect, but harm U.S. businesses and U.S. consumers.
In his statement Radenbaugh furthers with “The tariff is being applied on all electric bikes that are manufactured in China and imported into the U.S. As domestic e-bike manufacturing is almost nonexistent, e-bike companies have no choice but to use international supply chains. Rad Power Bikes analyzed all of their manufacturing options when they started building e-bikes and continue to do so. It wasn’t and still isn’t possible for us to manufacture e-bikes in the U.S. However, manufacturing in China allows t Rad Power Bikes to meet a very high demand and in turn grow our U.S. based company.”
Rad Power Bikes says to be committed to growing their large U.S. workforce. “Our e-bikes are designed in Seattle, and the team provides 100% localized customer service and technical support in the US, Canada, and Netherlands. The company employs nearly 75 people, 60 of which are based in Seattle, Washington.”
Forced to raise prices
Furthermore, the company states “The biggest barrier to e-bike adoption has been price, which is why Rad Power Bikes focuses on building high-performing yet affordable e-bikes. Unfortunately, the tariff will now rebuild that price barrier. Rad Power Bikes is finding ways to absorb much of the impact of the 25% tariff, but is still forced to raise prices. The cost for our U.S. e-bike models will increase by USD 200, and our commercial-grade e-trike model will increase by USD 800, as soon as the tariff goes into effect on Thursday, August 23.”
“We believe e-bikes have the power to change the way people and goods move, and we won’t let the tariff stop us from disrupting the world of transportation,” says Radenbaugh.