It seems like the new tariffs policies are the number one topic out here in the cycling industry. And after a lot of reading, searching and cutting though the jargon of everything happening right now, I can safely say that tariffs, might be a more interesting and essential topic than I thought. Because you see, as a European citizen, I thought for a second that I was probably going to reach a bit deeper in my pockets for a Chris King headset, or a pair of Philwood Hubs. But there is actually way more to just, prices increases. On top of my personal researches, a few of you have reach out directly thought the contact page to ask what was my point of view, and even if the situation is a bit critical, I am confident I can explain most of what’s happening, so you don’t have to do the hours of reading I did.

So! If you’ve been living under a rock, let me give you a small recap of what’s happening right now: As of June 2025, the global trade landscape is not looking good with escalating tensions, mostly between the United States and China.

The United States has imposed tariffs totaling up to 145% on Chinese imports:

A 20% tariff introduced in February 2025.
A sweeping 125% “punitive tariff” announced in April 2025.
In May 2025, the U.S. granted a 90-day hold on the full implementation of the punitive tariff for select critical imports, giving companies a short window to adapt or shift supply chains.
Note that this 90-day hold, set to expire in early August 2025, has provided very limited relief for businesses but added more uncertainty to what is to come next…

China has retaliated with tariffs reaching up to 125% on U.S. exports:

Affected goods include agricultural products, industrial machinery, and energy supplies.
China has also increased use of non-tariff barriers, including tighter inspections and more aggressive regulatory enforcement on U.S. firms.

These escalating measures have led to:

Massive disruptions in global supply chains and manufacturing timelines.
Higher costs for raw materials and components
Rising consumer prices worldwide
Inflationary pressure is increasing, particularly in import-heavy economies like cycling.
Companies are accelerating efforts to diversify suppliers and reorganize supply chains and inventory strategies
Small and medium-sized companies are especially vulnerable, lacking the resources to quickly adjust.
Finally, the trade standoff is no longer confined to tariffs, it now represents a broader geo-economic struggle with global consequences for all of us.

On the other hand, the European Union finds itself right in the middle, and navigating a complex situation. Trying to balance its economic ties with both sides. And while Europe, isn’t directly involved in the tariff exchanges, we are facing indirect but very real rippling effects from this global trade tensions. And that’s mostly that that we’re going to talk about today.

Just a quick definition of what a tariff is so that everything is clear: A tariff is a tax that you have to pay when you import goods from another country. It is you, the person importing the product that is paying that extra money to your government. So if a bike shop is importing parts or frames from Asia for example. That bike shop needs to pay tariffs on said parts and frames it’s importing. That extra cost is usually baked into the final price, directly relayed to you, the client.

Now let’s take a step back and look at the cycling industry from a global perspective. Everything is deeply interconnected, and while it may seem like a finely tuned system, this global machine is also extremely vulnerable to disruptions like the newly introduced tariffs.

To give a sense of scale:

Taiwan produces most of the high-end frames and components.
China dominates mass-market production, supplying lower-cost bikes and components, but also high-quality carbon and titanium frames (a point I confirmed during my recent visit to the China Cycle show in Shanghai).
Vietnam and Thailand are becoming increasingly important players, especially in tire manufacturing for brands like Vittoria, Schwalbe, and Pirelli.
Europe and the UK do export cycling products, but mostly niche or highly specialized components.

So, what are the expected consequences?

It’s important to note that these consequences aren’t limited to the U.S. As mentioned earlier, if things stop working in one part of the system, the complex machine that is the global cycling industry could start to fall apart, hurting everyone involved in the process: Americans, Europeans, consumers, suppliers, and manufacturers alike.

Obviously, price increases.

Of course, prices are likely to rise across the board. In some cases, some component, like carbon rims, are produced almost exclusively in China. Many companies have already invested heavily in tooling and molds located in Chinese factories. These are expensive and difficult to move, and if companies are forced to relocate or invest in new tooling elsewhere, those costs will get passed straight to the consumer.

No margin to absorb the cost.

This also applies to high-end Taiwanese and Japanese components. Margins in the bike industry are already razor-thin, so it’s unlikely that brands or factories will absorb the cost increases. Particularly for niche manufacturers in Japan where production costs are already high, there’s neither room to absorb tariffs nor a reason not to raise prices, given the uniqueness of their products.

Limited availability and reduced selection.

If tariffs make a product uncompetitive, manufacturers may stop exporting it all together. We’ve already seen it with Silca’s new electronic pump that isn’t available in the US. And if a product stops selling, it might stop being produced. This could lead to certain niche or enthusiast components disappearing from catalogues entirely.

Innovation slowdown.

With increased uncertainty and rising costs, companies may hesitate to invest in new products or tooling. While we probably don’t need a new Specialized Tarmac every year, the development of genuinely useful or exciting new products may simply be paused due to budget constraints and risks associated with the current situation.

Local bike shops and jobs taking the biggest hit.

This, to me, might be the worst consequence. With tighter margins, some brands may be tempted to cut out distributors and retailers to shift toward direct-to-consumer sales. That would directly hurt your local bike shop, and by extension, the local cycling community that depends on it.

On top of that, we’ve already seen reports of layoffs tied directly to these new tariffs. And small brands are trembling, because they are the most vulnerable. Ironically, these tariffs, which are supposed to stimulate local job creation, might just be doing the opposite.

Are tariffs going making U.S. manufacturing more competitive and viable?

Short answer: no.

Do Americans even want that kind of manufacturing work?

Also, probably not.

The potential benefits of a more competitive U.S. bike industry would only be visible in the very, very long term. Meanwhile, the short-term pain is real, widespread, and immediate. And in today’s unstable global climate, “long term” doesn’t feel like something anyone can afford to count on.

But all this is only my take on what’s happening. So to get another point of view I decided to take it one step further by asking Mike, co-founder of No. 22 Bicycle Company, what things really look like for a U.S. based brand in the current climate.

How have recent changes in tariffs or import duties affected your access to raw titanium and components?

Although No. 22 manufactures its bikes in the U.S., its supply chain is international. Components like drivetrains (from Shimano, SRAM, Campagnolo, etc.) aren’t made domestically and must be imported. So far, price increases haven’t been extreme, but there have been noticeable supply disruptions. As for titanium, we source tubing from mills in the U.S., Japan, and China, each region supplying specific tubing diameters. Since the tariff changes, we haven’t had to place new orders yet, but we do anticipate increased costs, especially because some tubing sizes (like 46mm downtubes) simply aren’t produced in the U.S.

What about domestic alternatives? How would that impact cost or quality?

No. 22 prioritizes quality above all else. We choose suppliers not based on price but on their ability to deliver top-tier components, especially for specialized processes like 3D printing, 5-axis CNC machining, or hydroforming. Switching to domestic sources isn’t always possible, not just because of cost, but because domestic equivalents often don’t exist. Even if they did, the quality might not match our current suppliers. And artificially limiting sourcing could compromise our production, and while we’re willing to absorb some cost increases, there’s a limit to how much we can pass on to customers before pricing becomes unsustainable.

How much of your business is domestic vs. international, and do tariffs influence where you choose to sell?

About 60% of No. 22’s business is domestic, with the remaining 40% international. The brand has significant markets in Korea and across Europe. Tariffs, especially reciprocal ones, hurt our competitiveness abroad. Customers in other countries now face additional taxes for U.S.-made goods, making No. 22’s bikes harder to justify price-wise against local or tariff-free options.

Has consumer sentiment been affected by these tariffs?

Yes. Some International customers have expressed frustration, saying they won’t buy U.S.-made products again. The broader perception of the U.S.’s aggressive trade policies is hurting our brand’s image abroad. We’re even concern that other small U.S. brands may be even more severely affected. Tariffs are changing not just the economics, but also how customers feel about American products all together.

Would focusing on Europe be a viable export strategy?

Europe is already a key market for No. 22, with strong sales in Germany, Switzerland, the UK, and a growing presence in France. But again, tariff fears and pricing uncertainty are enough to scare off some European customers. To remain competitive, our bikes would need to be significantly better than the already excellent European alternatives, and not just marginally, because of the added import costs.

Have tariffs influenced your R&D or future planning?

So far, they haven’t changed course on future R&D projects. Many involve international partners, particularly in Europe. However, we have to stay cautious. The unpredictability of tariff policy makes it hard to commit to long-term plans. We’re holding back slightly to see if the tariffs are permanent or part of short-term political maneuvering.

Are there specific components or materials where tariffs hit hardest?

Some Chinese components and materials are affected by steep tariffs, but these form a relatively small portion of the total bike cost, maybe 10%. So even if costs double, it’s manageable. The bigger problem isn’t the tariff on inputs but how customer anxiety and sales volatility are affecting our business overall.

Have you considered out-of-the-box strategies, like opening a second workshop abroad?

We’ve seen other companies (like Silca) do this with success, setting up non-U.S. distribution or production hubs. However, No. 22’s unique craftsmanship and fabrication quality come from our amazing people, creating this unique team. Replicating that expertise elsewhere would be extremely difficult. While we’ve considered options, we haven’t found a viable alternative that stays true to our brand identity and quality standards.

Could this environment lead to a resurgence in U.S. framebuilding or titanium processing?

At a small scale, it already has. There’s been a boom in boutique U.S. builders, especially visible at shows like MADE or Philly Bike Expo. Many customers are turning to niche brands for bikes that feel more personal and unique, especially as mass-produced high-end bikes become ubiquitous.

But large-scale titanium processing is unlikely to return to the U.S. Running a titanium mill requires massive scale and investment. And many mills have closed because domestic demand isn’t enough. The U.S. (and other highly developed countries) might just be better suited for advanced manufacturing, not raw material production.

There you have it, folks! The situation is constantly evolving and complex, and if you read all the way down here, I feel I need to apologize for writing something this long, but trust me, I’ve reduced it a few times before posting it. Of course, a huge thank you to Mike From No. 22 for his time and his view on this situation. Looking forward to seeing how all of this will turn out, and let’s not forget that as we’re all in this together, helping each other is still the best way to go thought this.

Tariffs, and Trouble: A Deep Dive into the Cycling Industry’s Latest Crisis (With Mike from No.22)