If you followed the news this summer—or generally spend time monitoring e-bike prices as closely as we do—you might have noticed a sweeping cost increase in June-July. In many cases, we observed increases of roughly $200 in the prices of e-bikes corresponding to changes in US tariff policies, which affected specific taxes applied to imported goods.
On June 14th, 2024, an exemption for e-bikes in the United States Trade Representative (USTR)’s Section 301 tariffs list expired. This caused e-bikes, some potential e-bike components, some non-electric bikes, some carbon fiber frames, and some kids’ bikes to become subject to a 25% tariff paid by the importing company to the US Government.
Tariffs are often applied to imports for
a variety of reasons. As explained by the Cato Institute, they can help to protect domestic businesses from being undercut by foreign competitors, encourage consumers to support and rely on US-based manufacturers, and create jobs, among other things.
In the case of e-bikes, however, this reasoning collapses.
