Is the USA Cycling Industry in Trouble? Tariffs & Supply Chain Shock

The American cycling industry is facing an unprecedented crossroads. After years of growth and success, recent challenges have cast a long shadow over its future. 

Escalating tariffs, ongoing supply chain disruptions, and shifting global manufacturing landscapes have created a perfect storm of uncertainty for bike manufacturers, retailers, and consumers alike. 

With the cost of importing key components rising and economic anxieties affecting consumer spending, the question on everyone’s mind is: can the U.S. cycling industry survive this turmoil, or are we witnessing the start of a significant decline?

As someone deeply embedded in the cycling world with over 30 years of experience, I’ve watched the industry evolve from locally made bicycles in the mid-20th century to a complex global network of manufacturing and assembly. 

Today, a single bike is often a collage of parts sourced from multiple countries, assembled to balance quality and cost. 

This intricate supply chain has allowed for innovation and affordability but also exposed the industry to vulnerabilities, especially when geopolitical tensions and trade policies intervene.

In this article, I’ll take you through the history of bike manufacturing in the United States, explain how tariffs and supply chain issues are shaking the industry to its core, and explore what the future might hold for both big brands and smaller players. 

Drawing on insights from industry expert John Bradley, I’ll provide a clear-eyed perspective on the challenges ahead and what they mean for all of us who love cycling.

Understanding the Anatomy of a Modern Bicycle

Before diving into the issues facing the industry, it’s important to understand what goes into making a bicycle today. Unlike decades ago, when bikes were often assembled in a single factory in the U.S., modern bicycles are the result of a global collaboration.

A typical bike is made up of numerous components: the frame, tubing, dropouts, derailleurs, spokes, hubs, wheels, brakes, and countless accessories such as helmets, gloves, and shoes. 

Each of these parts often comes from different countries, chosen for their quality, cost-effectiveness, and manufacturing expertise.

For example, the frame might be designed in the U.S. but manufactured in Taiwan or China. Tubing could come from Japan, while derailleurs and gears might be sourced from Europe. 

This global sourcing ensures the best parts at the best prices, but it also means that any disruption in one region can ripple throughout the entire supply chain.

The Historical Shift: From American-Made to Global Production

To understand how we arrived at this point, it helps to look back at the history of bike manufacturing in the U.S. Companies like Schwinn once built bicycles in Chicago and Mississippi, benefiting from local labor and materials. 

However, rising overhead costs and competitive pressures led these companies to seek more affordable production options overseas.

Schwinn’s initial move was to partner with Giant in Taiwan, which offered lower production costs and a skilled workforce. It became more cost-effective to manufacture bikes in Taiwan and ship them back to the U.S. than to produce them domestically. 

Later, production expanded to China, where factories like Giant’s facility outside Shanghai became state-of-the-art hubs for bike manufacturing.

But the story doesn’t end there. As tariffs on Chinese imports increased, companies began shifting production to countries such as Cambodia and Vietnam to avoid additional costs. This constant relocation is a survival tactic but also a sign of instability within the industry.

Tariffs and Their Impact on the U.S. Cycling Industry

Tariffs have become a major headache for the cycling industry. These import taxes, especially those targeting Chinese goods, have increased the cost of bringing bikes and components into the U.S. market. 

For companies already struggling with inventory imbalances and supply chain delays, these tariffs add an extra layer of financial pressure.

The direct consequence is that bikes and parts become more expensive for retailers, who often have no choice but to pass these costs on to consumers. 

With bicycles often considered big-ticket items, price increases can deter buyers, especially during times of economic uncertainty.

Smaller companies trying to survive by importing product face particularly tough challenges, as they lack the scale or financial cushion to absorb these additional costs. 

Even larger brands, which sell globally, may try to shift sales to markets like Australia or the UK where tariffs are less burdensome. However, the overall effect is a strain on the U.S. cycling market.

Insights from Industry Expert John Bradley

To gain a deeper understanding of these issues, we spoke with John Bradley, a seasoned professional in the cycling industry. 

John emphasized that the primary motivation behind shifting production overseas has always been to reduce costs and increase profit margins. However, he also highlighted the strategic moves companies make to navigate tariffs and trade barriers.

"You look at what has happened to the American bike industry. Schwinn used to be built in Chicago, but due to various strategic reasons and cost pressures, production moved to Taiwan with Giant, and then to China. When tariffs hit China, factories in Cambodia and Vietnam became alternatives. It’s a constant shift to find the lowest costs." – John Bradley

John noted that companies try to protect their designs and intellectual property through contracts and agreements, but the global manufacturing landscape makes complete control difficult. 

He also stressed that the industry is facing a chilling effect due to the economic environment, with consumers hesitant to spend on new bikes or upgrades.

How Complex Is the Supply Chain?

The cycling industry’s supply chain is one of the most complex in the retail world. Unlike simpler products, a bike involves hundreds of parts sourced globally. This complexity means that any disruption—be it tariffs, shipping delays, or raw material shortages—can have a significant impact on production and availability.

Here’s a breakdown of some common bike components and their typical countries of origin:

Component	Common Country of Manufacture	Reason for Choice
Frames	Taiwan, China, Vietnam, Cambodia	Cost-effective skilled manufacturing
Tubing	Japan, Taiwan	High-quality materials and precision
Gears and Derailleurs	Japan, Europe (Shimano, Campagnolo)	Advanced engineering and durability
Wheels, Spokes, Hubs	China, Taiwan	Mass production and cost control
Accessories (Helmets, Gloves, Shoes)	China, Vietnam, Bangladesh	Labor-intensive assembly at low cost

What Does the Future Hold?

With tariffs showing no signs of disappearing soon and supply chain uncertainties continuing, the outlook for the U.S. cycling industry remains challenging. John Bradley and I both agree that a wholesale return to U.S. manufacturing is unlikely in the near term.

Setting up domestic production facilities would take years and significant investment, and even then, the cost of American-made bikes would be much higher than imported alternatives. Instead, companies are likely to explore hybrid solutions like assembly plants in the U.S. that utilize imported parts, hoping to avoid some tariffs while maintaining competitive pricing.

Meanwhile, the used bike market is thriving. With new bikes becoming more expensive, many consumers are turning to secondhand options. This trend benefits local bike shops, which can provide used bikes, parts, and repair services to keep riders on the road. It’s a silver lining in an otherwise tough environment.

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Conclusion: Navigating a Rocky Road Ahead

The U.S. cycling industry is undeniably in a tough spot. The combined pressures of rising tariffs, complex global supply chains, and economic uncertainty have created a challenging environment for manufacturers, retailers, and consumers. 

While the industry has shown resilience over the decades, the current situation demands adaptability and innovation.

From the historical shifts that moved production overseas to the current tariff wars pushing companies to scramble for alternatives, the landscape is changing rapidly. The good news is that cycling remains a beloved activity for many, and the community continues to support local bike shops and the growing used market.

As we move forward, it will be crucial for companies to leverage diverse strategies — whether through assembly plants, smarter sourcing, or tapping international markets — to survive and thrive. For riders, embracing the used market, maintenance, and thoughtful purchasing can help weather this storm.

Above all, I encourage everyone to keep riding. Bicycles are more than products; they are a source of joy, freedom, and mental well-being. As the industry navigates these choppy waters, the simple act of hopping on your bike remains a powerful reminder of why we do what we do.

Thank you for joining me in this deep dive into the state of the U.S. cycling industry. For more insights and detailed conversations, stay tuned for upcoming interviews and discussions. 

And if the weather is nice where you are, take a moment to get outside, enjoy your ride, and remember to love your bike, your family, and the freedom that cycling brings.

Frequently Asked Questions (FAQs)

Q1: Why are tariffs affecting bike prices so much?

Tariffs are taxes imposed on imported goods. Since many bike components and frames are manufactured overseas, tariffs increase the cost to bring these products into the U.S. This added cost is often passed on to retailers and ultimately consumers, leading to higher retail prices.

Q2: Can we expect more bikes to be made in the USA soon?

While there is interest in boosting domestic production, it’s unlikely to happen quickly. Building manufacturing capacity in the U.S. requires years of investment, skilled labor, and supply chain development. Additionally, U.S.-made bikes are typically more expensive, which may limit demand.

Q3: How can consumers cope with rising bike prices?

Consumers can consider buying used bikes or parts, which have become more affordable and readily available. Supporting local bike shops for repairs and maintenance can also extend the life of existing bikes, reducing the need for costly new purchases.

Q4: Are all bike companies equally affected by tariffs?

No. Larger companies with global sales may be able to shift production or sales to markets less impacted by tariffs. Smaller companies that rely heavily on imports for the U.S. market may face more significant challenges.

Q5: What role do supply chain delays play in this crisis?

Supply chain delays exacerbate the problem by causing inventory shortages, making it difficult for companies to meet demand. This can lead to lost sales and further financial strain.