07 May '25

Taiwan's Bicycle Industry Navigates US Tariff Waters

Challenges and Opportunities Emerge as Tariffs Cloud the Market

TAIPEI (Taiwan News) – Taiwan’s bicycle industry is encountering headwinds in the US market due to the uncertainty surrounding potential tariff hikes, according to recent reports.

The US government, under the leadership of President Donald Trump, initially proposed a 32% tariff on imports from Taiwan. While a temporary 10% tariff was implemented during a 90-day negotiation period, this created hesitation among US customers, who are now weighing whether to expedite orders or postpone them pending clarity on future tariff levels, as reported by CNA.

Taiwan's small and medium enterprises have successfully elevated the quality and pricing of its bicycles, capturing the attention of high-end customers, an AFP report indicated. However, the US government's aim to incentivize the relocation of bicycle manufacturing to the US through tariffs is seen by many as impractical.

Setting up a bicycle factory in the US within a short timeframe, estimated at three to five years, is deemed impossible due to factors such as labor concerns, high operational costs, and the lack of a comprehensive supply chain, according to the report. Experts recognize Taichung as a global center of bicycle industry expertise, a hub that would be exceptionally difficult to replicate in the US.

In the short term, some Taiwanese bike manufacturers anticipate benefiting from US buyers shifting away from Chinese imports, which face significant 145% tariffs. However, these tariffs may also result in increased competition from Chinese manufacturers selling cheaper bicycles in Europe, potentially intensifying the pressure on Taiwan's bicycle industry.

Other Versions

Justice • 08 Apr '25

A life in Taiwan

Taiwan's Bicycle Industry Navigates US Tariff Waters

Challenges and Opportunities Emerge as Tariffs Cloud the Market

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