U.S. To Cut 25% Tariffs On Some Chinese Bicycle Products

As U.S. consumer demand weakens, inflation rises and stimulus funding dries up, the Office of the U.S. Trade Representative (USTR) announced Wednesday, March 23, 2022 that it will exempt many Chinese bicycle products from the 25 percent tariff. The Office of the U.S. Trade Representative on Wednesday reinstated 352 expired product exemptions that will affect Chinese bicycle products that have been subject to the 25% Section 301 tariffs imposed by the United States since January 1, 2021. 1st month has expired.

This exemption will include children's bicycles 20" and smaller wheeled and 24" bicycles (electric bikes), carbon fiber frames (valued at $600 or less), some helmets, bicycle trailers, messenger bags, etc. and some other related products . Most bicycle products from China have previously been levied a 25% Section 301 tariff.

 Mike O'Gara, senior vice president of Huffy Corp., said at the PeopleForBikes bicycle leadership conference that "this tariff waiver comes at the right time for us."

Bob Margevicius, executive vice president of Specialized Bicycles, also said: "This is amazing news, announced ahead of a discussion with BLC's Supply Chain Management panel of which Mike O'Gara was a member." .

The U.S. Trade Representative’s Office said that the restoration of exempt product quantities will be retroactive from October 12, 2021, and will be extended to December 31, 2022. They cover tariffs of 7.5% to 25% imposed by former US President Donald Trump on $370 billion worth of Chinese imports.

The tariff relief also affects a number of other products, including pumps, electric motors, some auto parts and chemicals, backpacks, vacuum cleaners and other consumer goods.

In October 2021, the Office of the US Trade Representative opened the relevant investigation process, intending to re-exempt tariffs on 549 Chinese imports, and solicit public comments on this. As of February this year, a bipartisan group of U.S. senators asked the U.S. government to create a “more comprehensive” process that included excluding some Chinese products from Section 301 tariffs.