Good luck finding a bike, especially an electric bike, made in America.
It only took 30 years for the United States to lose its entire bicycle manufacturing industry. China dominates global bicycle manufacturing, with imports accounting for 97 percent of bicycles purchased in the US. according to a report. In fact, China has captured about 86.3 percent of the American bicycle market. And now tariffs threaten that market.
Congressman Earl Blumenauer sees an opportunity. The 75-year-old Democrat from bike-friendly Portland, Oregon, is introducing a new bill that aims to re-prop up domestic bicycle manufacturing by stealing them from China while helping protect e-bikes from high tariffs that could leave them out of the market. reach for many Americans.
China dominates global bicycle manufacturing
His bill includes three different proposals:
- A 10-year suspension of tariffs on imports of bicycle components, such as frames, tires, hubs, brakes, saddles and electric motors, to incentivize domestic bicycle assembly;
- A pass-through tax credit for the production of U.S.-made e-bikes to encourage companies to use domestic manufacturing;
- Low-interest loans, repayable after 12 years, for bicycle manufacturers to purchase production equipment and other capital expenditures.
Blumenauer also wants to close the loophole that allows the importation of cheap Chinese electric bikes with safety checks, some of which have been linked to Deadly fires caused by faulty batteries.. And he continues to push for his bill to give Americans a $1,500 discount on the purchase of a new electric bike.
And he's trying to finish it all before retiring at the end of the year after a half-century in Congress. It's been difficult trying to get his deeply polarized colleagues to come together to support, above all, bikes and cycling. Its e-bike rebate program remains stagnant. The only thing everyone wants to talk about is electric cars. But Blumenauer, who chairs the Congressional Bike Caucus, sees these efforts as part of the legacy he wants to leave behind.
“This is an opportunity for a reset,” he said in an interview with The edge. “People understand that bicycles are different.”
He cited the rise of electric bicycles in the wake of the Covid-19 pandemic, in which millions of people freed themselves from isolation and boredom by purchasing an electric bicycle. After enjoying years of popularity in Europe and China, it turned out that Americans liked e-bikes too.
It was an added bonus that e-bikes have been linked to fewer car trips, which has the potential to reduce carbon emissions, reduce pollution and minimize climate change. And some cities responded to the popularity of e-bikes install bike lanes and build protective infrastructure to help convince people that it is safe to get out of their cars and bikes, and establish local tax credit and rebate programs to lower prices.
But the country's trade policies, especially when it comes to China, could end up stopping all that positive momentum. Last month, the Biden administration announced significant new tariffs on Chinese imports, including electric vehicles, batteries, solar cells and a variety of other products, seeking to prevent China from flooding the market with cheap products that could endanger domestic manufacturers. .
E-bikes are caught in the crossfire. The Office of the U.S. Trade Representative has said electric bike batteries imported from China would be subject to 25 percent tariffs starting in 2026, up from 7.5 percent. Previous exemptions would no longer apply.
But rather than allowing tariffs to hit the e-bike industry just as it is gaining traction, Blumenauer is proposing a 10-year moratorium to allow American companies to catch up and establish supply chains that circumnavigate countries like China.
“It takes some time,” he said. “It can't be done overnight.”
That's where their domestic manufacturing incentives come into play. Blumenauer proposes a 20 percent tax credit based on the sales price of a bicycle produced in the United States. If a manufacturer sells a domestically produced bicycle to a retailer for $1,000, it would receive a $200 tax credit based on that sale. And the credit would be fully transferable, meaning that if a company does not have enough tax liability to use the credit, it could transfer or sell its credits to another company.
Along with the tax credit is a low-interest loan (about 1 percent, repayable after 12 years) to help companies buy the equipment needed to start manufacturing their bicycles in the United States. Companies would need to meet certain benchmarks, such as paying a prevailing wage and producing a certain number of bikes per year. But Blumenauer sees it as a strong economic incentive that will help many companies develop manufacturing capabilities from scratch.
Electric bikes are caught in the crossfire
“There is a change in mentality and consciousness,” he said. “The electric bicycle is one of those elements that gives national production an opportunity, you know, a foothold. “I think it would make a significant difference.”
It is a task higher than the highest. tall bike. The United States used to be a powerhouse in bicycle manufacturing, but those days are long gone. Local players failed to anticipate the popularity of “sports bikes” in the 1960s, allowing foreign imports to quickly dominate the market. First it was Taiwan and then in the 1990s China rose to prominence. The writing was on the wall.
Today, it is one of the most China-dependent industries in the United States, but you hardly hear anything from policymakers. The Biden administration is happy to spend billions of dollars to shore up electric vehicle production, under the guise of fighting climate change. But the president has failed to extend the same encouraging hand to bicycles and, more importantly, e-bikes, despite his own climate bona fides.
Today, it is one of the most China-dependent industries in the US.
It's not hard to see why. The United States is a nation immersed in car culture. The advent of the automobile fueled a decades-long road-building campaign that effectively subsidized the automobile industry, gobbling up land and eliminating smaller, cheaper modes of transportation, including public transportation. And the cars have paid us wreaking havoc on our environment, our built environmentand our health. Now we have to deal with the mess we created.
But bicycles, and especially electric ones, present an opportunity to right the sins of the past. They won't fix everything. We also need more walkable cities and sustainable transportation options. But bicycles will be an important weapon in the fight against car culture. and climate change.
Blumenauer's bill faces an uphill battle: Congress divided, no common ground anymore, bicycles perceived as a niche industry. Plus Blumenauer's imminent retirement. He's not convinced he can make it before he leaves, so he's reaching out to his colleagues to see who can get him to the finish line.
“There is a growing awareness of the role that the bicycle plays in all areas,” said Blumenauer. “It is the most efficient form of transportation ever designed. And when we combine this inherent advantage of the bicycle with electrification, modernized and domestic, I think we will generate the momentum we need.”