Sponsors (7)
The bill trades a decade-long tariff break and greater certainty for bicycle assemblers—potentially lowering consumer prices and boosting domestic assembly—for reduced federal tariff revenue, added compliance costs, and competitive pressure on some existing U.S. finished-bicycle manufacturers.
U.S. bicycle assemblers and manufacturers (mostly small businesses) can import specified bicycle parts duty-free for 10 years, lowering input costs and improving their price competitiveness.
Consumers may see lower retail prices or greater availability of bicycles if domestic assembly increases toward the bill's 2M/5M production targets.
Importers gain tariff certainty (reduced risk of additional Section 301 or other duties) and CBP rulemaking plus documentation requirements increase accountability and deter misuse of the duty preference.
U.S. finished-bicycle producers that do not rely on imported parts (and related transportation workers) could face increased competition from lower-cost assembled bikes, risking lost sales or jobs.
Importers and domestic assemblers will face added compliance burdens—certifications, post-assembly documentation, and potential CBP audits—that raise administrative costs, especially for small firms.
The 10-year duty suspension will reduce federal tariff revenue over that period, which could affect taxpayers or federal budget priorities.
Based on analysis of 2 sections of legislative text.
Allows certain imported bicycle parts to enter duty-free for 10 years when imported for U.S. assembly, requires importer certification and a USITC five-year report on production goals.
Introduced June 11, 2025 by Vernon G. Buchanan · Last progress June 11, 2025
Creates a temporary 10-year tariff exclusion that lets certain imported bicycle parts enter the U.S. duty-free when they are brought in specifically for assembly or manufacture into complete bicycles, tricycles, electric bikes, or bike trailers. Importers must certify to Customs and Border Protection (CBP) at entry that the parts will be used for domestic assembly and provide documentation after final assembly. Gives CBP authority to write rules to administer the new tariff heading, allows some later changes in section 301 duty status to be applied, and requires the U.S. International Trade Commission (USITC) Chair to report in five years on the law’s effects and progress toward producing 2,000,000 bikes per year within five years and 5,000,000 per year within ten years; the duty suspension expires 10 years after enactment.