Domestic Bicycle Production Act

Public Policy,

On Tuesday, May 14, the United States announced that tariffs on certain products from China would increase, including children’s bikes, bike trailers, and electric bicycles. While these products have been excluded in the past, they now face a 25% tariff increase, which could lead to increased prices for consumers. In response, Congressman Blumenauer introduced the Domestic Bicycle Production Act, a piece of legislation aimed at alleviating these price hikes and ensuring that bikes remain accessible for everyone. The legislation adopts a European model of bike production and assembly by continuing to import bike parts while ramping up domestic assembly and gradually building facilities required to produce the parts here at home.

The Domestic Bicycle Production Act utilizes a three-pronged approach, which entails:

  • Instituting a 10-year tariff suspension on imports of bicycle components (i.e. electric motors, frames, wheel rims, hubs, brakes, saddles, pedals, gears, etc.) to incentivize bicycle assembly operations in the United States.
  • Creating a transferrable electric bicycle production tax credit for bicycles manufactured in the United States to encourage companies to utilize domestic manufacturing
  • Establishing a U.S. Bicycle and E-Bicycle Manufacturing Initiative to make low-interest, 12-year loans to purchase capital equipment toward establishing or increasing the capacity of domestic bicycle manufacturing facilities. 

ACT endorses this piece of legislation and encourages members to call their Representatives in Congress and ask that they support it. Further information on the legislation can be found here, and any questions can be directed to Zach Calderón.

Read more about the Act 
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