WASHINGTON (BRAIN) — The U.S. Trade Representative's office has granted tariff exclusions to some more bike-related products. Meanwhile the industry is working to extend the exclusions to the tariffs, which are imposed on China-made products as part of the Trump administration's Section 301 action. Unless extended, most of the exclusions expire Aug. 7, while others expire Sept. 1.
In recent weeks, the USTR has granted exclusions to two sizes of rims, aluminum frame bikes with import value of under $45, some multi-speed cruisers, some hydration packs and some messenger bags. These exclusions were granted to items on the USTR's List 3, which applied to $200 billion in imports from China, including about $1 billion worth of bicycle-related products. These exclusions expire Aug. 7. The additional tariff on List 3 is 25%, in addition to any previous tariffs.
The USTR also has granted exclusions to items on List 4a, which took effect in December and are currently at 7.5% in addition to any pre-existing tariffs. The exclusions were for bike helmets, bike lights, and some goggles; these exclusions expire Sept. 1. List 4a tariffs still apply to some miscellaneous parts and accessories, apparel, shoes and batteries, among other items.
The Trump administration recently released an executive order that grants temporary relief from some tariff payments. The order allows importers to delay paying tariffs on imports made in March and April. The tariffs still have to be paid but they may be delayed by 90 days if the importer can show it has been significantly harmed by COVID-19 government orders. The delay does not apply to any of the Section 301 tariffs on Chinese goods, although the delay does apply on items that have been granted exclusions from those tariffs.
Alex Logemann, PeopleForBikes' policy counsel, noted that the industry is preparing to lobby for extension of the tariff exclusions. He expects the USTR to open up a public comment period in early June to consider extending the List 3 exclusions.
More information on the tariffs on the PeopleForBikes tariff page.
