Chinese E-bikes Face 25% US Tariffs

Washington, USA – The US Trade Representative (USTR)has approved the inclusion of e-bikes and e-bike motors in a list of imports from China that will be subject to an additional 25 percent tariff. Customs and Border Protection will begin to collect the additional duties on August 23, 2018.

The original list of 284 products which included e-bikes and e-bike motors was proposed on June 15 as part of the Trump administration’s response to what it claims are China’s unfair trade practices related to the forced transfer of American technology and intellectual property. After a review and a public comment period, which saw the US bike industry and consumers submit both comments and testimony opposing the tariff, the USTR removed just five product categories from the list of 284 categories that was proposed. This finalized list of 279 products represents approximately $16 billion worth of imports, and is the second tranche of additional tariffs following the first round of tariffs on approximately $34 billion of imports from China that went into effect on July 6.

According to a press statement released by the USTR, its Section 301 investigation found that:

  • China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.

  • China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.

  • China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.

  • China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.

Further Tariffs
Further duties are on the horizon in the form of a third round of tariffs covering a huge $200 billion worth of trade. Included in this list are numerous bicycle-related goods estimated to be worth $1 billion. This group of products initially had a proposed 10% tariff, but at President Trump's urging, this was raised to 25% last week. Currently, the third this tranche of tariffs is open to public comment until September 6th.
A complete list of products in the third tranche under consideration for additional tariffs may be found on the USTR website