WASHINGTON (BRAIN) — Legislation introduced in Congress this week would eliminate tariffs on components used to assemble complete bikes in the U.S., long a major concerns of bike brands looking to add value in the U.S. without making the full step toward frame manufacturing.
The U.S. Bicycle Production and Assembly Act was introduced by Representatives Vern Buchanan (R-FL) and Mike Thompson (D-CA), both senior members of the House Ways and Means Committee and co-chairs of the Congressional Bicycle Caucus.
Industry members and trade groups applauded the introduction.
"This legislation supports American jobs, lowers costs for domestic producers, and makes it easier to build and assemble bikes in the U.S.," said Jenn Dice, president and CEO of PeopleForBikes.
"It's a smart, targeted solution to a longstanding problem — how to grow U.S. bicycle manufacturing in the face of rising costs and global trade pressures."
The bill eliminates tariffs, including Section 301 and other punitive tariffs, on products used for bike assembly. It also mandates that the U.S. International Trade Commission report to Congress within five years on progress toward two primary goals: assembling 2 million bicycles annually in the U.S. within five years and 5 million bicycles annually within ten years.
Last year, Rep. Earl Blumenauer introduced the Domestic Bicycle Production Act which also eliminated tariffs on componentry. Blumenauer's bill also included an e-bike production tax credit and established a low-interest loan program to assist bike makers. The 2024 legislation never received a Republican sponsor and Blumenauer retired at the end of 2024.
PeopleForBikes said the new legislation is the result of "months of collaboration and idea-sharing by members of PeopleForBikes' Domestic Manufacturing and Supply Chain Committee, who worked together through multiple drafts and proposals to shape a policy that meets the real-world needs of U.S. bicycle companies."
In a joint press release, Buchanan and Thompson said the legislation would strengthen U.S. companies and workers.
“Ninety-seven percent of bikes purchased in the United States are made elsewhere. It’s time we change that," said Thompson. "The U.S. Bicycle Production and Assembly Act would give bike manufacturers the foothold they need to grow a thriving industry right here in the United States. I am glad to work with Rep. Buchanan to introduce this legislation to bring bicycle manufacturing back to our shores."
Buchanan said, “Our goal is simple: strengthen American manufacturing, support American workers and ensure that U.S. bicycle companies can compete on a level playing field,” said Buchanan. “This bill incentivizes the assembly and production of bicycles here at home, protecting American workers and promoting a widely-enjoyed hobby with countless health benefits. This pro-manufacturing legislation supports domestic production capacity, drives investment and gives U.S. businesses a competitive edge in global markets.”
