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Federal Register Notice doesn't provide clarity on tariffs' impact on industry

Published May 22, 2024

WASHINGTON (BRAIN) — The U.S. Trade Representative published a Federal Register Notice on Wednesday concerning the Section 301 tariffs on China but it's still unclear whether existing bike products will continue to receive exclusions as the May 31 deadline for ending all exclusions approaches.

Excluded products include e-bikes, kids' bikes, bike trailers, and others. In a news release, PeopleForBikes said it will continue to work for Congress and the Biden administration "to better understand the intent of this action and advance more favorable trade policy for the U.S. bicycle industry."

The notice did confirm an additional 25% tariff on lithium-ion batteries imported from China that will go into effect on Jan,1, 2026, and compounding tariffs on a range of steel, stainless steel, and aluminum products that will go into effect Aug.1.

On May 14, President Joe Biden said his administration would impose new increased tariffs on Chinese electric vehicles, batteries, and battery materials, in addition to solar panels, steel and aluminum products and other items. The administration said the EV tariff would increase to 100% from its current 25%. Most other products he mentioned would receive a 25% tariff.

A new exclusions process and comment period for a range of machinery used in manufacturing was included in the notice, and there is an opportunity to request that other machinery be added to the proposed exclusions. PeopleForBikes said companies with domestic production capacity that use machinery imported from China might want to submit a comment by the June 28 deadline.

Topics associated with this article: Tariffs, Electric bike