QuietKat, the Eagle, CO-based manufacturer of all-terrain electric bikes, announced today that it will postpone the implementation of the new import tariffs on e-bikes until October 1st, to give consumers and retailers time to place orders for QuietKat products without the additional fees.
This summer, the U.S. Trade Representative approved the inclusion of e-bikes and e-bike motors on the list of $16 billion worth of Chinese products that was hit with a 25 percent tariff. Most e-bikes sold in the U.S. are manufactured in China.
The tariff places an additional $200-$500 on each e-bike QuietKat assembles in China. It went into effect on August 23rd, but the company had declined to pass on those additional fees to consumers until the start of the fourth quarter of 2018.
“We strongly oppose these tariffs on imported electric bicycles and will delay imposing these additional fees on our customers, so they can order their e-bikes for the upcoming hunting season without the extra cost,” said QuietKat CEO Jake Roach. “As a way to thank our customers for their business, any pre-orders for QuietKat bikes made before October 1 will not be subject to the additional fees.”
E-bikes are the fastest-growing segment of bicycle sales in the United States. During the last 12 months, e-bike unit sales jumped 112 percent, according to the bicycle industry advocacy group PeopleForBikes. Ridership and engagement is increasing, and people across most demographics are using e-bikes to replace motor vehicle trips or augment existing bicycle trips.
Roach said that the company has joined the rest of the bike manufacturing industry to formally oppose the tariffs and is looking forward to reversing the USTR’s position in the coming months.
“These punitive tariffs harm suppliers, retailers and consumers, and stunt the sales growth of an environmentally beneficial product,” Roach said. “They also do very little to protect American e-bike manufacturers, because there are almost none who currently produce their products in the United States.”
QuietKat is joining PeopleForBikes and the Bicycle Product Suppliers Association to submit an application to the USTR for an exemption from the tariff, the deadline for which is October 9th.
Another proposed round of tariffs, which would apply a 25 percent duty on $200 billion in Chinese goods — including about $1 billion of bike-related products — is working through the system. That group of products initially had a proposed 10 percent tariff, but the USTR, at President Trump’s urging, raised it to 25 percent last month.
How will this affect QuietKat electric mountain bikes?
On October 1 an additional line item will be added to each order to account for the 25% tariff that is now in place. We have decided on graduated tariff increases based on model as follows: