Following the UK’s exit from the EU, the government has decided to eliminate anti-dumping tariffs on Chinese electric bicycles, effective February 7, 2025. This move, recommended by the Trade Remedies Authority, aims to lower costs for consumers, potentially saving them £200 on non-folding e-bikes. However, it may challenge local manufacturers facing competition from cheaper imports. Unlike the UK, the EU has extended its tariffs to protect its bicycle industry. Meanwhile, the US is also implementing protective measures on imports, including electric bicycles.
After the United Kingdom officially exited the European Union on January 31, 2020, the nation has begun implementing its own regulations, particularly concerning electric bicycles. Recently, the UK government revealed an unexpected decision to eliminate anti-dumping tariffs imposed on imports from China.
Is This Move Beneficial for the UK and Its Consumers?
Last summer, the Trade Remedies Authority (TRA) proposed lifting these tariffs, and the government has now acted upon that recommendation, with the change taking effect on February 7, 2025. Previously, these tariffs varied between 10% and 70%, depending on the manufacturer.
“The TRA’s investigations concluded that maintaining these import restrictions on Chinese electric bicycles was not aligned with the economic interests of the United Kingdom,” the announcement states. “Eliminating the tax on non-folding electric bicycles could lead to an average savings of £200 (€240),” the TRA further asserts, “making e-bikes more accessible to consumers.”
The rationale behind this decision stems from the fact that the majority of electric bicycles available in the UK are sourced from Asia, especially China. Unlike its continental neighbors such as Germany, the Netherlands, and France, the UK lacks a robust domestic cycling industry.
Impact on Local and European Manufacturers
This new policy may pose challenges for the few British and European brands that produce locally, such as Orange, Pashley, Ribble, Wisper, and Woodrup, which are already facing stiff competition from Chinese manufacturers known for their appealing prices. Volt, one of the impacted brands, voiced its concerns to BBC, describing the decision as “a peculiar choice that undermines the British industry.”
A government representative assured that the UK remains vigilant against dangerous electric bicycles, specifically addressing “the hazards posed by unsafe batteries in e-bikes and electric scooters.”
Importantly, this tariff removal does not apply to folding electric bicycles, which will continue to be taxed. This exemption helps protect local favorites like Brompton and smaller brands such as Gocycle and Estarli. Notably, folding electric bicycles only represent about 5% of the total market sales within the UK.
The UK’s Divergence from EU Policies
Since the 1990s, France and the European Union have enacted import tariffs on Chinese bicycles, a measure that was extended to electric bicycles in 2019 and was initially set to expire in August 2024.
At the urging of the European Bicycle Manufacturers Association (EMBA), the EU has opted to prolong these tariffs for an additional five years. “These measures have mitigated the adverse effects of importing subsidized bicycles from China and unfair trading practices, particularly affecting entry-level and mid-range European manufacturers,” stated the European Commission.
“They have also enabled the emergence of new European brands and encouraged investments in technology and environmentally friendly production methods,” it added.
Protectionism in the United States
In a related note, the United States has also adopted a significant protectionist stance, effective February 1, 2025. Under the leadership of Donald Trump, the US has implemented a general import tax of 10% on all imports, including electric bicycles, with even higher rates of 25% on products from Mexico and Canada.
Unlike Europe, which has a solid local assembly industry for electric bicycles, the US relies heavily on imports, with major brands like Specialized, Trek, and Cannondale sourcing primarily from Asia. The presence of domestically produced e-bikes is scarce, with a few brands like HPC, Detroit Bikes, Electric Bike Co, and Bike Friday leading the way.
Moreover, this tax hike will affect numerous components such as brakes, batteries, and motors, which are predominantly manufactured overseas. Consequently, the US is likely to witness a surge in electric bicycle prices.
Despite President Trump’s aspirations for revitalizing the American manufacturing sector, including bicycles and their components, the feasibility remains uncertain. Given the elevated costs of labor, components, and materials—plus tariffs on steel and aluminum imported from abroad— domestically produced e-bikes are expected to be significantly more expensive.
Lastly, it’s worth noting that the Chinese bicycle industry has contested the EU and US measures, claiming that they are “hindering the ecological transition by inflating product prices,” according to BikeEco.