Posted on August 9th, 2018 at 10:24 am.
“Our forecasts predict that a 25% tariff will cause a 65-75% drop in sales as consumers postpone their purchases until sanity returns to our trade policies.”
— Wake Gregg, The eBike Store
In their ongoing effort to achieve more “fair and balanced” trade conditions with China, the Trump Administration has finalized a list of $16 billion worth of products that will be hit with a 25 percent tariff that will go into effect August 23rd.
Among those products are electric bicycles and e-bike motors. Bikes imported from China previously had no tariff. The tariff on motors will be 29 percent as the new tariff will be added to the existing one 4 percent. People for Bikes, a national bike industry advocacy group, fought the move, but has so far been unsuccessful.
This is bad news for the e-bike market. As we shared last week, sales of the pedal-assisted bikes have been a major bright spot for bike companies and retail shop owners. Here in Portland, we have a thriving e-bike scene and shop owners report brisk sales. There’s been a sense that — after years of challenges due to an educational and cultural bottleneck — the U.S. market for e-bikes had finally matured. And like many bike trends, Portland is at the tip of the spear.
Here are reactions to the new tariffs from three local shop owners: