U.S. imposes tariffs on 14 goods categories – will e-bike exports be hit

U.S. imposes tariffs on 14 goods categories - will e-bike exports be hit

The Biden administration announced on May 14, 2024, that it had completed its review of China’s trade practices under Section 301 of the 1974 Trade Act.

The White House said it was maintaining existing tariffs on Chinese imports and planned to impose new tariffs on a range of products.

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    List of products subject to tariff increases

    List of products subject to tariff increases

    If the U.S. government follows a similar process for imposing tariffs following the completion of the original 301 investigation in March 2018, a Federal Register notice is typically published that publicizes the proposed tariff action and invites the public to provide written comments.

    Next, the USTR will organize a public hearing for all parties to present their views on the appropriate action the government should take in response to the current 301 investigation. Ultimately, USTR will issue a formal decision on new tariffs and tariff increases.
     
    Based on historical experience, the implementation of the new tariffs and tariff increases is expected to take several months, although the exact timing is uncertain.
     
    President Biden has stressed in recent weeks that the tariff increase is part of his administration’s strategy to address what many analysts have pointed out as China’s anticompetitive behavior and overcapacity in key products such as steel, aluminum and solar panels.
     
    In its statement, the Office of the United States Trade Representative also announced that it would establish a tariff exclusion process for machinery and equipment used in U.S. manufacturing, with special priority given to tariff exclusions for equipment needed to manufacture solar panels, to support the development of its domestic industries.

    Are electric bikes affected?

    China leads the world in e-bike manufacturing, and almost all e-bikes in the U.S. e-bike market are also produced in China, although there is also e-bike production in the U.S. itself, which relies heavily on supplies from Chinese factories. Who are the top 10 electric two-wheeler manufacturers in China?

    Therefore, tariff changes could have a major impact on Chinese exporters.

    For its part, the United States has claimed that the 100% tariff on Chinese electric vehicles is meant to protect its own automakers from the onslaught of Chinese EVs.

    However, it is unclear whether this new tariff will reach e-bikes as the Biden administration has yet to provide a detailed list and specific information.

    Are electric bikes affected

    In a statement, the White House said, “China’s electric vehicle exports have grown 70 percent from 2022 to 2023 due to the risk of overcapacity from subsidies and non-market behavior, which threatens productive investment elsewhere.

    However, it is not yet possible to determine which electric vehicles will be affected by the tariffs because there is no specific Customs and Border Protection (CBP) list of HTS codes.

    E-bikes are typically classified as consumer goods in the U.S. rather than motorized vehicles, and may not be included in China’s 100 percent electric vehicle tariffs.

    But again, this is only speculation, as CBP focuses primarily on classifying international imports, not domestic regulatory classifications.

    Final words

    Looking back in history, during the Trump administration there was a 25% full-board tariff on Chinese imports, and at one point e-bikes were affected.

    However, over time, e-bikes were gradually exempted from the tariffs, and these exemptions were renewed several times.

    If e-bikes end up being considered in the category of electric vehicles and affected by the 100% tariffs, the precedent of past exemptions may obtain additional tariff exemptions for e-bikes, but this is all still pending a clear list and explanation from the US.

    You can also check the top 10 electric bike manufacturers in USA and the top 20 electric bike manufacturers in the world for your reference.

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    Chocolatezhu
    Chocolatezhu
    Hi, I'm an experienced writer about mechanic and an expert on bike and e-bike tech who appreciates practical, beautifully-engineered things. And of course, I love cycling.
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