Lawmakers from both parties in the United States have introduced the American Bicycle Production and Assembly Act, which would temporarily suspend tariffs if imported bicycle parts are used to assemble bicycles in the United States.
Supporting local bicycle assembly and manufacturing
Since companies that produce and assemble bicycles in the United States face high tariffs on key components, this poses a significant obstacle to domestic economic growth. Recently, the United States bipartisan jointly introduced the American Bicycle Production and Assembly Act, a forward-looking bill that aims to accelerate domestic bicycle manufacturing in the United States by eliminating major tariff barriers. The bill: 1. Eliminate tariffs on bicycle parts specifically for assembly in the United States. 2. Support existing manufacturers and open up new opportunities for them to produce bicycles domestically in the United States. 3. Qualified imported products used for complete vehicle production are exempt from Section 301 and other punitive tariffs. 4. Set a measurable goal of assembling 2 million bicycles per year in the United States within five years and 5 million bicycles per year in the United States within ten years. Jenn Dice, President and CEO of PeopleForBikes, said: "This legislation supports American jobs, reduces costs for domestic producers, and makes it easier to manufacture and assemble bicycles in the United States. This is a smart and targeted solution to a long-standing problem - how to develop the American bicycle manufacturing industry under rising costs and global trade pressures."
Last year, Representative Earl Blumenauer introduced the Domestic Bicycle Production Act, which also eliminated tariffs on parts and included a tax credit for e-bike production and a low-interest loan program to assist bicycle manufacturers. The 2024 bill did not receive Republican sponsorship, and Earl Blumenauer retired at the end of 2024.
Providing output and employment
The U.S. Bureau of Economic Analysis estimates that the bicycle industry contributes nearly $5.5 billion to U.S. gross domestic product (GDP), while the outdoor industry is a $1.2 trillion industry that employs more than 5 million Americans. The Outdoor Industry Association estimates that the bicycle industry directly generates $100 billion in retail spending, supports nearly 1 million jobs, and generates $13 billion in state and federal taxes each year. As momentum builds to bring more manufacturing back to the United States, this legislation gives bicycle companies the tools and certainty they need to invest in domestic production and meet the growing demand for more people to enjoy the freedom and fun of biking.
Extend tariff exemption for some products
Helmets and bicycle trailers with aluminum frames made in China will be exempt from 7.5% Section 301 tariffs until at least the end of August. The Section 301 tariffs were imposed during the first Trump administration. Many bicycle-related products subject to Section 301 tariffs, which were 7.5% or 25%, were exempted under the Trump and Biden administrations until those exemptions ended in May of this year. The Office of the United States Trade Representative (USTR) announced before the deadline that some products will be exempted until August 31. The extended exemption applies to specific bicycle helmets, which are a subset of protective headwear under HTUS tariff code 6506.10.6045; the exemption does not apply to protective headwear for other sports. The extended exemption also specifically applies to bicycle trailers with aluminum frames, which are a subset of products under tariff code 8716.40.0000.
