E-Bike Companies Are Navigating Tariffs in Different Ways
Briefly

The e-bike industry in the U.S. is experiencing a slowdown in growth due to new tariffs which complicate supply chains for many companies. State Bicycle Company has introduced an 8% Tariff Recovery Fee, citing potential product shortages similar to those seen during the pandemic. They emphasize transparency by itemizing the fee, stating it will decrease if tariffs do. Aventon responded by relocating production to Southeast Asia, facing new costs due to the less mature supply chain, but chose to absorb these costs to ease customer financial burdens amid rising living expenses.
"We expect this to result in bike and component shortages, especially on high-demand models, much like what we saw during the early COVID pandemic," said State Bicycle Company.
"Rather than bury the increase in our pricing, we're itemizing it. When tariffs drop, so will this fee," State Bicycle Company explained.
Aventon noted that Southeast Asia's supply chain infrastructure is less mature, impacting their ability to produce bikes without cost increases.
"We recognize that rising living costs weigh heavily on our customers," Aventon explained their decision to absorb tariff-related costs.
Read at InsideHook
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