The UK government has lifted tariffs on non-folding e-bikes imported from China, arguing this could save consumers an average of £260 per e-bike. UK brands have however described the move as “a kick in the teeth,” and say it will cause, “a lot of trouble for a lot of companies.”
Following Brexit, to maintain alignment with the EU, the UK imposed a tariff on e-bikes made in China and several other countries (Cambodia, Indonesia, Malaysia, Pakistan, the Philippines, Sri Lanka and Tunisia) which Chinese manufacturers have previously used to circumvent the measures.
The duty was introduced to prevent China from flooding the market with cheap e-bikes, forcing local manufacturers out of business. Tariffs were between 10.3% and 70.1%, and these were supplemented by taxes of 3.9% to 17.2% designed to counteract subsidies.
In 2023 it was announced that the UK government’s Trade Remedies Authority (TRA) would review the measures and a year later it published its findings, recommending that the tariffs be revoked.
TRA chief executive Oliver Griffiths explained that the benefits to UK bicycle producers, “would be significantly outweighed by harm to the rest of the economy.”
Domestic manufacturers were, as you’d imagine, less than delighted with this finding.
Industry reaction
Speaking last month, Brompton managing director Will Butler-Adams expressed concern about the impact of cheaper imports and also took the opportunity to highlight the fact that anti-dumping tariffs in the rest of Europe had recently been extended for another five years.
“I don’t need the government to back me [with financial support],” he said. “I just don’t need them to kill me, you know?”
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Nevertheless, on February 6 of this year, the government accepted the TRA’s recommendation and announced that tariffs would end the following day. They have however been maintained on folding e-bikes, “as UK producers are more heavily concentrated in this market.”
Speaking to the BBC, David Miall of Wisper Bikes said that it was, “a very scary time for the industry,” and that he had already been contacted by Chinese bike manufacturers offering very low prices.
"They've overstocked too, and they now see the UK as a place to dump their bikes," he said. "I think the government are thinking 'Let's give e-bikes a boost' but this has been badly thought-through by people who don't understand the industry."
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James Metcalfe of Volt Bikes, said, "I think this is an odd decision, and a kick in the teeth for UK manufacturing."
He said Volt had moved manufacturing to the UK following assurances tariffs were long term.
“We've invested a lot in it. We're a small business, family-owned, and trying to do the right thing by building a quality product."
He said if the goal were savings for UK consumers, "Why not do what everyone else has done across Europe? Provide grants and invest in bike infrastructure in the UK."
Metcalfe’s thoughts were echoed by Oliver Francis of Estarli, who told Zag Daily: “Unlike the government, we feel the best way to make e-bikes more affordable for the public would be to introduce European-esque subsidies and therefore keep the investment in the UK. Instead, they have chosen to make things cheaper for the Chinese government.”
Francis did however sound a more optimistic note with his hope that an influx of unfamiliar names might drive consumers towards local retailers.
“I hope the public recognises the quality differential and aftercare superiority of UK e-bike brands and their products,” he said.
“Similarly, we hope the hard work of high street shops is appreciated. I think more new bike brands will generate confusion and actually drive buyers to shops for clarity and trust.”
