The trade war has caused the cost of American goods to rise, especially products from China and Taiwan. For example, a bicycle made in China and assembled in Taiwan has seen a $400 price increase in just two weeks due to higher tariffs. The U.S. bicycle industry, valued at $6 billion (about 43.9 billion RMB), is facing severe challenges. This long-standing industry, which has relied on Chinese manufacturing, could see widespread price increases of 50% across the U.S. bicycle market due to the tariffs imposed by the Trump administration.
Industry Giants Warn of Trade War Impact
Arnold Kamler, Chairman of Kent International, one of the largest bicycle manufacturers in the U.S., has issued a warning: If U.S. tariffs on Chinese bicycles reach 104% or higher, the price of bicycles in America could increase by 50%. This forecast has stirred significant reactions within the industry, including well-known U.S. brands such as Specialized, Trek, and Santa Cruz, all of which have most of their production outsourced to China.
Data shows that around 12.5 million bicycles are sold annually in the U.S., with 90% of them relying on imports, and China is the primary supplier. Kent International’s adult bicycle prices range from $150 to $525 (about 1,098 to 3,844 RMB). Kamler revealed that when the Trump administration initially imposed a 20% tariff, the company was forced to raise prices by 20%. When the tariff rate increased to 34%, prices went up by another 25%. Now, with a 125% tariff rate, prices are expected to rise further.
Challenges in Industry Relocation: U.S. Manufacturing Struggles to Escape Tariff Issues
Kent International anticipates a sales volume of around 1.4 million bicycles in the U.S. this year, the lowest in over a decade. “The continuous price increases have led to declining sales,” Kamler explained. Although the company has moved some of its assembly operations from Asia to the U.S. since 2014, key components are still sourced from China. “Even with factories in the U.S., the high tariffs remain a burden.”
Larry Moore, legal counsel for the bicycle industry advocacy group “PeopleForBikes,” warned that the cost pressures could lead to industry consolidation: “Many businesses are facing bankruptcy or mergers, which is a survival crisis.”
Electric Bicycles: Growing Market Faces the “Chain Disruption” Risk
In the past decade, electric bicycles (e-bikes) have rapidly gained popularity in the U.S., becoming an economic alternative to cars and public transportation. Their blend of commuting convenience and recreational benefits has especially appealed to urban populations and fitness enthusiasts. However, industry data shows that over 90% of e-bikes in the U.S. are either fully assembled in China or rely on key Chinese-made components, making them particularly vulnerable in the trade war. Under the new tariff policies, U.S. brands face a dilemma: absorb the increased costs or pass them on to consumers, which could cause the prices of popular models to surge dramatically.
Faced with escalating tariff pressures, some companies are exploring alternative production bases in Southeast Asia. However, industry insiders note that China’s mature industrial chain and economies of scale are difficult to replace in the short term, and a complete shift of production will face challenges such as a shortage of skilled workers and inadequate supporting facilities.
