Trump tariffs see UK bike brand offer customers 5% discount to “meet them halfway”, as cycling industry gripped by more uncertainty

UK-based steel mountain bike brand Starling Cycles has pledged to meets its customers “halfway” by offering them a five per cent discount on all its frames, in response to US President Donald Trump’s new tariffs on imports, which have left the global cycling industry once again gripped by uncertainty.

Announced on Wednesday, and leading to the FTSE 100’s biggest one-day drop since the beginning of the Covid-19 pandemic, the Trump administration’s new reciprocal tariffs will see an additional 10 per cent tariff imposed on goods from all countries entering the United States, on top of any pre-existing duties or tariffs, along with targeted higher base tariff rates on all goods from select nations.

When it comes to the biggest suppliers of bikes to the US, China – which was responsible for 86 per cent of all bike imports to the US, and 40 per cent of the total value of non-electric bike imports in 2024 – will face a new 34 per cent tariff rate.

That means, on top of the multiple tariff rates already imposed on Chinese imports, bikes coming to the US from China will face tariffs of around 90 per cent.

Taiwan, where 30 per cent of the value of all non-electric bike imports to the United States originate, will now face a 32 per cent targeted tariff.

Meanwhile, other key source countries, such as Vietnam (46 per cent), Japan (24 per cent), Thailand (36 per cent), Cambodia (46 per cent), Indonesia (32 per cent), and the EU (20 per cent) will all have substantial new targeted rates imposed.

2024 Colnago C68 carbon bike factory rows of frames (credit: road.cc)

Making matters even more complicated, US trade law – unlike in the EU – determines a bike’s country of origin based on the source of its frame. That means that even if a bike is assembled in the US, and contains American components, if the frame was built in China and hasn’t undergone “substantial transformation”, it will still be subject to the new stricter tariffs.

The exact details of how these tariffs will impact the cycling industry, still slowly recovering from the aftereffects of the Covid-19 pandemic, are currently unclear, with the news expected to dominate discussion at next week’s Sea Otter Classic festival.

Nevertheless, the expected result of the Trump administration’s measures is rising costs for importers, higher prices for US customers, and a stagnating retail market.

One owner of a Taiwan-based company told road.cc this morning that they are currently adopting a “wait and see” attitude when it comes to the tariffs, suggesting that it is not yet obvious how much of an impact they will have on consumers.

> Trump’s tariffs might just tip the bike industry over the edge

But one brand based in the UK – which has seen a 10 per cent tariff imposed – has already decided to take action by offering customers across the world a five per cent discount on all products.

High-end steel mountain bike brand Starling Cycles says the discount will enable them to “keep Starlings flowing into the US, without charging silly money”.

“In a classic case of politics making life harder for the little guy, the UK just got slapped with a 10 per cent tariff on exports to the USA,” Starling Cycles founder Joe McEwan said in a statement on the brand’s website.

“So, we’re pushing back. We’re not about politics, but neither are we stoked about a geriatric millionaire telling us who we can, or can’t sell to.

“We’re about getting our bikes into the hands of people who’ll love them, whatever country they’re in. We love our USA customers, and we’ll be damned if we leave them out in the cold.”

 

 

 

 

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A post shared by Starling Cycles | UK-Made Steel MTB Frames (@starlingcycles)

In a video posted on Instagram, McEwan continued: “We’re going to meet them halfway and we’re going to give them five per cent tariff relief, five per cent discount to all US customers as of Friday when the tariffs come in.”

“We can’t absorb the full 10 per cent, but we’ll meet you halfway and soften the blow. And because we don’t want to leave anyone out, we’re extending that same 5 per cent discount worldwide,” the mountain bike manufacturer said of the limited time deal.

Despite discounts like those offered by Starling, the outlook remains gloomy within the industry, with the tariffs expected to lead to tightened budgets as importers are hit with immediate additional payments on bikes.

“The biggest problem for us and everyone is the cash flow,” Arnold Kamler, the CEO of American manufacturer Kent International told Bicycle Retailer and Industry News this week.

“When we buy bicycles and bike parts, we get credit terms of 60-90-120 days, but with high tariffs they get deducted from our checking account automatically. We have an auto debit with US customs, and I assume most of the big bike companies do. It’s brutal.”

However, in a similar vein to our source in Taiwan, others believe it’s best to wait until more details are known.

“I would think that Trump’s recent history of announcing and then retracting trade sanctions will make most brands reluctant to jump into price increases,” Matt VanEnkevort, Marin Mountain Bike’s CEO, said.

“But if this does actually come into effect, this will increase dealer and consumer pricing substantially. It’s not going to help bike dealers.”