'Companies that already assemble bicycles in the US are struggling to survive' - Tariffs could devastate cycling industry if not adjusted, warns open letter to President

PeopleForBikes, the trade association representing the United States bicycle industry, has sent a formal letter to President Donald Trump requesting tariff relief for bicycles, components, apparel, helmets, and related accessories.

The open letter, dated April 29, begins with a request for "tariff relief or an exclusion process like your administration did in 2018," before outlining who People For Bikes represents, expressing an understanding of the administration's motivations for the tariffs, and then explaining its reasons for the request. 

On April 2, branded "liberation day" by the President, the Trump administration revealed a worldwide blanket 10% tariff on goods coming into the United States, with higher 'reciprocal' tariffs to a host of countries. Many far-eastern countries such as Vietnam, Cambodia and Taiwan were hit hardest, at 46, 49 and 32 per cent respectively. 

China was originally set at 34%, but currently faces tariffs of 145% after issuing its own reciprocal increase. 

During his first term, which ran from 2017 to 2021, Trump issued a series of similar tariffs, primarily targeting steel, aluminium and a wide range of Chinese goods, but issued exemptions to certain products. These included kids bikes and electric bikes, and there were reduced tariffs on helmets, lights and many miscellaneous components. 

"While America once made all of the bicycles we need, this has not been the case for several decades," the letter explained. 

"Difficulties moving the supply chain for bicycles, parts, apparel, and accessories persist. For example, each bicycle may have 200 or more component parts that are still primarily sourced from sub-suppliers in foreign countries. 

"Developing a domestic manufacturing base for this wide variety of components will take substantial time and capital investment at a time when capital is hard to come by and cash flow is tight."

The letter went on to warn of the effects that the tariffs could have, with concerns around job losses and companies shutting down entirely. 

"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. 

"We are hearing concerns around additional layoffs and the risk of more companies closing their operations, including some of our few remaining domestic manufacturers.

"Further, companies that already assemble bicycles in the United States are struggling to survive given the increased tariffs on the components needed for domestic assembly operations."

The letter went on to reiterate that bringing mass manufacture of all the constituent parts of a bicycle into the United States would take "many years and significant financial investment," but that the People For Bikes association is "working with members of Congress" to make it happen. 

While the intention of the tariffs is that American businesses stop buying from overseas and instead shift their buying habits to goods manufactured in the USA, many have complained that this will drive prices up for American consumers. With the cost of production set to increase, businesses are already being forced to pass on those costs to their customers. 

Two of the USA's biggest bike brands, Specialized and Trek, have already increased their prices as a result. 

The letter also warned about the potential safety risks should tariffs remain and prices rise. 

"Current and proposed tariffs on bicycle helmets make buying this essential and legally required safety equipment much less affordable, which could leave both adults and children unprotected from potential injury."

The letter is unnamed, but its author, People For Bikes, is backed by over 340 suppliers, manufacturers and distributors in the United States. Its board of directors comprises well-known industry names, including An Le, Global Marketing Director at Giant Bicycles; Bob Burns, Vice President at Trek Bikes; Joe Graney, CEO at Santa Cruz; Ken Lousberg, CEO at SRAM, and Blair Clark, President at Canyon. 

"We believe it is important to protect this quintessentially American industry," began its conclusion. "We therefore respectfully request that you consider granting tariff relief for bicycles, bicycle components, apparel, and related accessories to help safeguard this important business sector that has enriched the lives of millions of Americans for more than a century."