U.S. Tariff Hits Bike Supply Chains | New 2025 Rates

On July 31, the U.S. government unveiled a new 2025 tariff system, reshaping global trade. Effective August 7, rates differ based on trade balance:

• ✅ 10% for surplus countries
• ⚠️ 15% baseline for 40 deficit nations

🇨🇦 Canada Faces 35% Tariff—Effective Immediately

As of August 1, Canada sees a 35% tariff—the highest among U.S. partners. Goods under the USMCA are exempt, reducing pressure on some sectors.

🚲 Bicycle Industry Disrupted by Tariff Shock

The bicycle and e-bike industry is heavily impacted. High-volume suppliers now face:

• 🇹🇼 Taiwan – 20%
• 🇻🇳 Vietnam – 20%
• 🇰🇭 Cambodia – 19%
• 🇲🇾 Malaysia – 19%

Matt Moore of PeopleForBikes warns that costs will “rise significantly across the global bicycle supply chain.”

⚖️ Legal Battles Challenge Presidential Tariff Powers

Trump cited the IEEPA act for authority. But courts question its validity in targeting specific countries. Final rulings may take months and reach the Supreme Court.

🇪🇺 EU Deal Reduces Pressure but Imposes 15%

The U.S. and EU reached a 15% tariff agreement—less than threatened 30%, but well above the pre-2020 average. Aircraft, generics, and chemicals remain zero-tariff under the framework.

📦 $800 Duty-Free Threshold Eliminated

From August 2025, the U.S. removes the $800 de minimis exemption for all countries. This affects folding e-bikes, ebike batteries, and parts from Asia.

This preemptive move, stricter than the 2027 budget act, aims to block low-value direct shipments that bypass safety inspections.

🔍 What Importers Need to Know

Global importers now face complex trade conditions. Tariffs, bilateral deals, and legal delays may alter prices monthly. Supply chain planning and OEM sourcing strategy must adapt quickly.