New Tariffs Serious Trouble for Global Bicycle Industry

The bicycle industry is grappling with the immediate and severe effects of newly imposed U.S. import tariffs, which are threatening to disrupt supply chains, inflate costs, and challenge the sustainability of many brands. On April 2, the U.S. government introduced significant tariffs, including a blanket 10% duty on most goods and even steeper tariffs on key countries critical to the bike industry. Taiwan, which supplies a large portion of U.S. bike imports, is facing a 32% tariff, while Vietnam, a major manufacturing hub for many e-bike brands, faces a staggering 46% duty on e-bikes.

The immediate consequences of these tariffs are already being felt by companies like Tern Bicycles, a well-known brand known for its high-end e-cargo bikes. Tern’s U.S. office is facing the prospect of a $1 million increase in tariff fees if shipments currently in transit do not clear customs before the April 9 deadline.

“Our customs broker normally gives us terms (on duties), but that’s for $20,000 or $30,000. Not $1 million,” said Steve Boyd, Tern’s general manager for North America, for an article on Bicycle Retailer. The company is scrambling to expedite shipments in hopes of avoiding the added costs, but the uncertainty is weighing heavily on its operations.

This looming financial burden could dramatically reshape Tern’s business model, with Boyd expressing frustration over the unpredictability of the new tariffs.

New Tern GSD

“I don’t want anything with 46% duty,” he said. “If we had got just a 10% hit you’d go back and see what we could make work. But 46%, I just said, ‘don’t ship us anything else until we figure it out.’” With the added costs threatening to make their products less competitive, Boyd is focused on finding solutions, including the possibility of diversifying production to other countries like Portugal, where Tern already assembles bikes for the European market.

Other brands like Brooklyn Bicycle Co., based in the United States, are also impacted by the tariffs, and are proactively planning to mitigate the effects.

Ryan Zagata, the company’s founder, noted that the 32% tariff on imports from Taiwan will significantly increase costs for his company, which sources the bulk of its bikes from Taiwan.

“The recent tariffs are throwing a wrench in our operations,” Zagata said. Brooklyn Bicycle Co., which released a new version of its popular Driggs city bike, is taking a longer-term, strategic approach to manage the increased costs.

“We’re looking at a few avenues,” Zagata explained. “Diversifying suppliers, streamlining operations, and advocating for fair trade policies are key parts of our plan.” While the company is still navigating how to address the rising costs, they are actively working to minimize the impact through internal efficiencies and exploring new manufacturing partners in regions less affected by the tariffs.

As Brooklyn Bicycle Co. plans for the future, the uncertainty facing Tern highlights the very serious nature of these tariffs. While Brooklyn is still in the early stages of adjusting its strategies, Tern is facing a pressing need to make critical decisions in the near term.

For the wider industry, the financial repercussions of these tariffs are likely to ripple across the supply chain, leading to higher prices and potentially dampening the growing consumer interest in cycling. With nearly 98% of bicycles in the U.S. imported—many from countries now facing heavy tariffs—retail prices are expected to rise in the coming months, so keep that in mind if a new bicycle is in your future.