Understanding the U.S. Section 232 Tariffs on Steel and Aluminum in Relation to the Bike Industry

Background

The tariffs known as the “Section 232” are part of an American trade law called the Trade Expansion Act of 1962. This law empowered the U.S. President to negotiate tariffs, expand international trade, and retaliate against foreign countries that placed unfair or unreasonable restrictions on American goods and services. In June 2025, the tariff rate on steel and aluminum was increased from 25% to 50%, with an exemption for steel from the United Kingdom at 25%. Currently, the Section 232 tariffs apply only to specific steel and aluminum products, as well as many derivative products that contain steel or aluminum.

Steel

Based on recent updates from the U.S. Department of Commerce, the steel used in e-bikes, electric motorcycles, indoor trainers, exercise bikes, and some hand tools are subject to the Section 232 tariffs at the current rate of 50%. This applies to all countries, with the exception of the UK at 25%. What this means is that non-electric, standard bicycles with steel content, components, and various accessories will not be subject to the Section 232 tariffs for now. However, there also exists specific Section 232 tariffs that apply on specific product from certain countries. For example, on top of the steel products just updated, steel bicycle chains and steel bicycle cables originating from China are additionally subject to the Section 232 tariff rate at 50%.

It is important to note that the Section 232 tariffs are an addition to the multitude of other U.S. tariffs already being enforced. In this context, if importing a steel e-bike from China, the total percentage of tariffs that will apply are 1) Section 301 Tariff at 25%, 2) Reciprocal Tariff at 30% (Currently frozen at 30% until November 10, 2025), and 3) Section 232 Tariff at 50%.

Aluminum

So far, the current Section 232 tariffs targeting aluminum products does not include any bicycle, e-bike, electric motorcycle, component, or accessory. It is important to pay attention to any updates made towards the Section 232 tariffs in the event that new product or derivatives are added that may affect bike industry products.

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