The US doesn’t make bicycles anymore — right here’s how one can change that Leave a comment

Good luck discovering a bicycle — an particularly an e-bike — made within the US.

It solely took 30 years for the US to lose its total bike manufacturing trade. China dominates international bike manufacturing, with imports accounting for 97 % of bikes bought within the US, based on one report. Certainly, China has captured some 86.3 % of the US bike market. And now tariffs threaten that market.

Congressman Earl Blumenauer sees a chance. The 75-year-old Democrat from bike-friendly Portland, Oregon, is introducing a brand new invoice that goals to re-shore home bike manufacturing by stealing it again from China whereas additionally serving to defend electrical bikes from excessive tariffs that might put them out of attain for a lot of Individuals.

His invoice consists of three completely different proposals:

• A ten-year suspension of tariffs on imports of motorbike parts, like frames, wheel rims, hubs, brakes, saddles, and electrical motors, to incentivize home bike meeting;
• A transferrable e-bike manufacturing tax credit score for bikes manufactured within the US to encourage firms to make the most of home manufacturing; 
• Low-interest loans, repayable after 12 years, for bike producers to purchase manufacturing gear and different capital bills.

Blumenauer additionally needs to shut the loophole that enables for the import of low cost Chinese language e-bikes with security checks, a few of which have been linked to lethal fires attributable to defective batteries. And he’s persevering with to foyer for his invoice to present Individuals a $1,500 low cost on the acquisition of a brand new electrical bike.

And he’s making an attempt to get all of it performed earlier than he retires on the finish of the 12 months, after half-a-century spent in Congress. Its been robust making an attempt to get his deeply polarized colleagues to band collectively to help, of all issues, bikes and biking. His e-bike rebate program stays stalled. All everybody needs to speak about is electrical automobiles. However Blumenauer, who chairs the Congressional Bike Caucus, sees these efforts as a part of the legacy he needs to go away behind.

“This can be a likelihood for a reset,” he stated in an interview with The Verge. “Folks perceive bicycles are completely different.”

He cited the e-bike growth within the wake of the covid-19 pandemic, through which hundreds of thousands of individuals discovered freedom from isolation and tedium within the buy of an e-bike. After having fun with years of recognition in Europe and China, it turned out Individuals preferred e-bikes too.

It was an added bonus that e-bikes have been linked to fewer automotive journeys, which has the potential to cut back carbon emissions, slash air pollution, and reduce local weather change. And a few cities responded to the recognition of e-bikes by putting in bike lanes and constructing protecting infrastructure to assist persuade folks its protected to get out of their automobiles and on their bikes, and establishing native tax credit score and rebate packages to decrease costs.

However the nation’s commerce insurance policies, particularly as they relate to China, might find yourself bringing all that constructive momentum to a halt. Final month, the Biden administration introduced main new tariffs on Chinese language imports, together with electrical autos, batteries, photo voltaic cells, and a spread of different items — looking for to stop China from flooding the market with low cost merchandise that might endanger home producers.

E-bikes discover themselves caught within the crossfire. The Workplace of the US Commerce Consultant has stated that e-bike batteries imported from China can be topic to 25 % tariffs beginning in 2026, up from 7.5 %. Previous exemptions would now not apply.

However quite than let tariffs kneecap the e-bike trade proper as its gaining steam, Blumenauer is proposing a 10-year suspension to let US firms catch up and set up provide chains that circumnavigate international locations like China.

“It takes a while,” he stated. “You possibly can’t do it in a single day.”

That’s the place his home manufacturing incentives come into play. Blumenauer is proposing a 20 % tax credit score primarily based on the gross sales value of a motorbike produced within the US. If a producer sells a domestically produced bike to a retailer for $1,000, they’d then obtain a $200 tax credit score primarily based on that sale. And the credit score can be absolutely transferrable, that means if an organization doesn’t have sufficient tax legal responsibility to make use of the credit score, it might switch or promote its credit to a different firm.

Working in live performance with the tax credit score is a low-interest mortgage — round 1 %, repaid after 12 years — to assist firms purchase the mandatory gear to start making their bikes within the US. Firms would want to satisfy sure benchmarks, like paying a prevailing wage and producing a sure variety of bikes a 12 months. However Blumenauer sees it as a powerful financial incentive that may assist plenty of firms construct up manufacturing capabilities from nothing.

“There’s a change in mindset and consciousness,” he stated. “The e-bike is a type of components giving home manufacturing a shot, you realize, a toehold. I believe would make a major distinction.”

It’s a activity taller than the tallest tall-bike. The US was once a bike-manufacturing powerhouse, however these days are lengthy gone. The homegrown gamers didn’t anticipate the recognition of “sports activities bikes” within the Nineteen Sixties, permitting overseas imports to shortly dominate the market. First got here Taiwan, after which by the Nineteen Nineties, China rose to prominence. The writing was on the wall.

Right this moment, its one of the crucial China-dependent industries within the US, however you hardly hear a peep from policymakers. The Biden administration is glad to spend billions of {dollars} to prop up electrical car manufacturing, on the pretense of combating local weather change. However the president has failed to increase the identical incentivizing hand to bicycles and, extra importantly, e-bikes — regardless of their very own local weather bonafides.

It’s not arduous to see why. The US is a nation steeped in automotive tradition. The appearance of the car spurred a multi-decade freeway constructing marketing campaign that successfully sponsored the auto trade, gobbling up land, and squeezing out smaller, extra economical modes of getting round, together with public transportation. And automobiles have repaid us by wreaking havoc on the environment, our constructed setting, and our well being. Now we’re left to take care of the mess we created.

However bikes — and particularly e-bikes — current a chance to appropriate the sins of the previous. They received’t repair every part. We additionally want extra walkable cities and sustainable transit choices. However bikes will likely be an necessary weapon within the combat in opposition to automotive tradition and local weather change.

Blumenauer’s invoice faces an uphill battle: divided Congress, no extra widespread floor, bikes perceived as a distinct segment trade. Plus Blumenauer’s imminent retirement. He’s not satisfied he’ll get it performed earlier than he leaves, so he’s reaching out to colleagues to see who can carry it over the end line.

“There may be rising consciousness of the position that the bicycle performs throughout the board,” Blumenauer stated. “It’s probably the most environment friendly type of transportation ever designed. And once we mix this inherent benefit of the bicycle with electrification, modernized and home, I believe it’ll construct the momentum we want.”