Bide’s Chinese tariffs and e-bicical industry

May 14, 2024. President Biden announced a New set of trade tariffs at $ 18 billion in imports from China. These Chinese tariffs affect the wide range of industries, including electric vehicles (EV) and e-bicycle.

Section 301 trade laws from 1974 will increase the tariff rate on electric vehicles from 25% to 100%.

Tariphic increase-grinding from 7.5% to 25% will affect the lithium-ion e-bicycle battery.

The new tariffs came into force on June 14th. Although intended for the protection of US workers and companies, these tariffs could have adverse effects on EV and e-bicycle industry as a whole.

Exemption tariff for e-bickel that expired

E-bicicultics batteries have been previously excluded from Section 301 tariff.

President Trump actually set up China Tariffs that included e-bickelBut officials from the Office of the United States Trade Representatives have consistently excluded these products from the increased rate.

The Chinese tariffs of the Biden administration undo these protection, which means that it will now cost more imports of e-bicycle batteries-more.

People for dogsAn organization that has struggled hard for tariff exclusion, estimates that its efforts have saved the cycling industry over $ 130 million since 2018. Now your costs are likely to fall on the consumer’s shoulders.

As Chinese tariffs can affect EV and e-bickel prices

With these tariffs on EV and e-bicycle, there is almost no doubt that e-bickel prices will increase in the coming years.

Although there are many American brands for e-bicicles- Canondale and Work Power Bikes – That doesn’t mean China is completely out of the Electric Bull game. One 2021 studies estimates that the country earns 86.3% of all bicycles purchased in the United States

Even with the growing popularity of American e-bicicals, companies often need to import parts such as batteries from China-which leads to increasing costs reflected in the final price.

Of 2023., Average e-bicycle on the middle facility Costs around $ 3,000 to $ 4,000, which is already too much for many. Our 2023. Ebike.org The poll confirmed this, and almost half of the NE-E-Bike owner, citing high prices as a reason they have not yet invested in one.

Increasing costs due to tariffs could further make the ownership of e-biciclics inaccessible to the average American. That was said, there are plenty of e-bicice at each price – At least for now.

The ownership of EV is unlikely to affect that much. According to our report mentioned above, the second is the second largest electric car market in the world, so finding a car made in the US should not be a problem for Americans.

In addition, the United States look prepared when it comes to batteries for EV. IN Environmental Fund Conducted a study that shows that the US have a capacity to produce batteries to supply all electric vehicles that are expected to be sold in 2030.

An incentive for US e-bits and EVs

The Chinese tariffs of Biden administration emphasize a commendable desire to support US companies, but as with many initiatives, the consumer is lost in the process. By bringing a trade war at the economic level, the tariffs inadvertently burden individuals.

Still, there is still hope. Since May 2024, it is biden Rules to complete As for $ 7,500 in tax reliefs to move to an electric car. However, Rules limit the tax relief For EVs with parts made in China.

The administration also consumes billions on the EV infrastructure to the entire country. The E-Bicicline Law is also in Congress for the second time, offering 30% of the tax loan (up to $ 1,500) for the purchase of e-bits. These initiatives can help offset the increased costs for EVs and e-bits.

At the end of the day, e-bicycle manufacturers and EV will be adjusted. Although new tariffs can force a hand, simplification of domestic operations can eventually result in faster production and more consumer level.

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