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UK Government removes tariffs on Chinese e-bikes sparking concerns for domestic industry
Posted on 14 Feb 2025
The UK Government has removed anti-dumping tariffs on non-folding e-bikes imported from China in a move that has raised alarm within the UK’s cycling industry over potential market disruption and safety concerns.
The Secretary of State for Business and Trade Jonathan Reynolds accepted the recommendation from the Trade Remedies Authority (TRA) to revoke the tariffs, which previously ranged between 10.3% and 70.1%.
The Government argues that this removal of tariffs will reduce the cost of an average e-bike by around £200, encouraging more people to take up cycling at a time when active travel is being promoted as a sustainable alternative to car journeys. The decision marks a departure from the EU, which recently extended its tariffs on Chinese e-bikes. The UK, however, determined that maintaining these trade barriers was “not in the economic interest of the UK.”
While folding e-bikes will still be subject to tariffs, non-folding models—making up 95% of the UK’s e-bike market—will no longer face import duties, with the new measures taking effect from 7 February 2025.
Despite the potential savings for consumers, industry leaders warn that this decision could negatively impact UK and European manufacturers, independent retailers, and the broader e-bike ecosystem. Without the protection of tariffs, it’s feared that Chinese manufactured e-bikes that do not meet the quality or stringent safety requirements of UK-made e-bikes could become the predominant product within the British market.
Jonathan Harrison, Director of the ACT, expressed major reservations about the impact of the decision. He said: “There is, understandably, serious concerns about the potential consequences of removing these tariffs. There’s no guarantee that the cost savings will be passed on to consumers, especially by the larger chain retailers, who may choose to retain the extra margin rather than lowering prices.
“Independent bike shops and UK-based e-bike brands, which already face significant challenges, could find themselves squeezed out of the market by an influx of low-cost imports. These businesses take pride in offering high-quality, well-supported products, but competing with heavily subsidised Chinese imports at rock-bottom prices will make survival even harder.
“Furthermore, we’ve seen a disproportionate amount of negative press around e-bike safety, much of which has been misinformed and out of proportion with the reality for most e-bike products. The issue is often unfairly conflated with overpowered conversion kits or non-compliant products, but zero tariffs on many cheaper Chinese-manufactured e-bikes could exacerbate safety concerns. Without stringent checks, we risk more low-quality or poorly tested products entering the market, which could lead to more incidents and further damage consumer confidence.
“The knock-on effect of this decision could be severe, not just for manufacturers but also for independent cycling retailers, many of whom already struggle to compete with the pricing power of major chains. Many of these retailers are hesitant to stock lower-cost e-bikes if they don’t meet the safety and quality expectations that UK consumers rightly demand. With European and UK-based manufacturers unable to compete at these new price levels, we could see more closures of independent bike shops, reducing consumer choice and eroding the diversity of the UK cycling market.
“This decision risks prioritising short-term price cuts over the long-term health of the UK’s e-bike industry.”
In response to the decision, trade publication Cycling Industry News spoke to Katie Begley, head of cycle trading at Halfords, who said: “The UK is currently way behind our European neighbours when it comes to the number of ebikes sold. A reduction in levies on non-folding Chinese ebikes will help address this problem and, as the nation’s biggest seller of compliant ebikes, at Halfords we believe it will contribute to an increase in the number of people buying ebikes.
“But the real challenge is ensuring unregulated and dangerous products do not find themselves on the road, and the government must play its part alongside the rest of the industry in banning conversion kits.”
Mark Sutton, writing in Cycling Electric, echoed these concerns, pointing out the broader implications of the Government’s decision. He said: “The removal of these duties will undoubtedly increase competition in the market, but at what cost? We’ve already seen European e-bike manufacturers shift their focus away from the UK due to Brexit uncertainty and a lack of incentives for investment. This move could further deter manufacturers from supplying the UK market, pushing more consumers towards direct-from-factory imports, where safety and serviceability may not always be up to standard.”
In response to the tariff removals, many industry advocates have argued that the Government should instead focus on alternative ways to make e-bikes more accessible, such as subsidies or grants similar to those seen in France and Germany, with these initiatives shown to significantly boost e-bike uptake in those countries while supporting domestic manufacturing.