The US doesn’t make bicycles anymore — here’s how to change that

Jun 06, 2024 07:00 PM - 5 months ago 52604

Good luck uncovering a bicycle — an particularly an e-bike — made successful nan US.

It only took 30 years for nan US to suffer its full motorcycle manufacturing industry. China dominates world motorcycle manufacturing, with imports accounting for 97 percent of bikes purchased successful nan US, according to 1 report. Indeed, China has captured immoderate 86.3 percent of nan US motorcycle market. And now tariffs frighten that market.

Congressman Earl Blumenauer sees an opportunity. The 75-year-old Democrat from bike-friendly Portland, Oregon, is introducing a caller measure that intends to re-shore home motorcycle manufacturing by stealing it backmost from China while besides helping protect electrical bikes from precocious tariffs that could put them retired of scope for galore Americans.

China dominates world motorcycle manufacturing

His measure includes 3 different proposals:

  • A 10-year suspension of tariffs connected imports of motorcycle components, for illustration frames, instrumentality rims, hubs, brakes, saddles, and electrical motors, to incentivize home motorcycle assembly;
  • A transferrable e-bike accumulation taxation in installments for bikes manufactured successful nan US to promote companies to utilize home manufacturing; 
  • Low-interest loans, repayable aft 12 years, for motorcycle manufacturers to bargain accumulation instrumentality and different superior expenses.

Blumenauer besides wants to adjacent nan loophole that allows for nan import of inexpensive Chinese e-bikes pinch information checks, immoderate of which person been linked to deadly fires caused by faulty batteries. And he is continuing to lobby for his measure to springiness Americans a $1,500 discount connected nan acquisition of a caller electrical bike.

And he’s trying to get it each done earlier he retires astatine nan extremity of nan year, aft half-a-century spent successful Congress. Its been reliable trying to get his profoundly polarized colleagues to set together to support, of each things, bikes and cycling. His e-bike rebate programme remains stalled. All everyone wants to talk astir is electrical cars. But Blumenauer, who chairs nan Congressional Bike Caucus, sees these efforts arsenic portion of nan bequest he wants to time off behind.

Rep. Earl Blumenauer, left, from 2011.

Photo By Bill Clark/CQ Roll Call

“This is simply a chance for a reset,” he said successful an question and reply pinch The Verge. “People understand bicycles are different.”

He cited the e-bike roar successful nan aftermath of nan covid-19 pandemic, successful which millions of group recovered state from isolation and boredom successful nan acquisition of an e-bike. After enjoying years of fame successful Europe and China, it turned retired Americans liked e-bikes too.

It was an added prize that e-bikes person been linked to less car trips, which has nan imaginable to trim c emissions, slash pollution, and minimize ambiance change. And immoderate cities responded to nan fame of e-bikes by installing motorcycle lanes and building protective infrastructure to thief person group its safe to get retired of their cars and connected their bikes, and mounting up local taxation in installments and rebate programs to little prices.

But nan country’s waste and acquisition policies, particularly arsenic they subordinate to China, could extremity up bringing each that affirmative momentum to a halt. Last month, nan Biden management announced major caller tariffs on Chinese imports, including electrical vehicles, batteries, star cells, and a scope of different equipment — seeking to forestall China from flooding nan marketplace pinch inexpensive products that could endanger home manufacturers.

E-bikes find themselves caught successful nan crossfire. The Office of nan United States Trade Representative has said that e-bike batteries imported from China would beryllium subject to 25 percent tariffs starting successful 2026, up from 7.5 percent. Past exemptions would nary longer apply.

But alternatively than fto tariffs kneecap nan e-bike manufacture correct arsenic its gaining steam, Blumenauer is proposing a 10-year suspension to fto US companies drawback up and found proviso chains that circumnavigate countries for illustration China.

“It takes immoderate time,” he said. “You can’t do it overnight.”

That’s wherever his home manufacturing incentives travel into play. Blumenauer is proposing a 20 percent taxation in installments based connected nan income value of a motorcycle produced successful nan US. If a shaper sells a domestically produced motorcycle to a retailer for $1,000, they would past person a $200 taxation in installments based connected that sale. And nan in installments would beryllium afloat transferrable, meaning if a institution doesn’t person capable taxation liability to usage nan credit, it could transportation aliases waste its credits to different company.

Working successful performance pinch nan taxation in installments is simply a low-interest indebtedness — astir 1 percent, repaid aft 12 years — to thief companies bargain nan basal instrumentality to statesman making their bikes successful nan US. Companies would request to meet definite benchmarks, for illustration paying a prevailing costs and producing a definite number of bikes a year. But Blumenauer sees it arsenic a beardown economical inducement that will thief a batch of companies build up manufacturing capabilities from nothing.

E-bikes are uncovering themselves caught successful nan crossfire

“There’s a alteration successful mindset and awareness,” he said. “The e-bike is 1 of those elements giving home accumulation a shot, you know, a toehold. I deliberation would make a important difference.”

It’s a task taller than nan tallest tall-bike. The US utilized to beryllium a bike-manufacturing powerhouse, but those days are agelong gone. The homegrown players grounded to expect nan fame of “sports bikes” successful nan 1960s, allowing overseas imports to quickly predominate nan market. First came Taiwan, and past by nan 1990s, China roseate to prominence. The penning was connected nan wall.

Today, its 1 of nan astir China-dependent industries successful nan US, but you hardly perceive a peep from policymakers. The Biden management is happy to walk billions of dollars to prop up electrical conveyance production, connected nan pretense of fighting ambiance change. But nan president has grounded to widen nan aforesaid incentivizing manus to bicycles and, much importantly, e-bikes — contempt their ain ambiance bonafides.

Today, its 1 of nan astir China-dependent industries successful nan US

It’s not difficult to spot why. The US is simply a federation steeped successful car culture. The advent of nan automobile spurred a multi-decade road building run that efficaciously subsidized nan car industry, gobbling up land, and squeezing retired smaller, much economical modes of getting around, including nationalist transportation. And cars person repaid america by wreaking havoc connected our environment, our built environment, and our health. Now we’re near to woody pinch nan messiness we created.

But bikes — and particularly e-bikes — coming an opportunity to correct nan sins of nan past. They won’t hole everything. We besides request much walkable cities and sustainable transit options. But bikes will beryllium an important limb successful nan conflict against car civilization and climate change.

Blumenauer’s measure faces an uphill battle: divided Congress, nary much communal ground, bikes perceived arsenic a niche industry. Plus Blumenauer’s imminent retirement. He’s not convinced he’ll get it done earlier he leaves, truthful he’s reaching retired to colleagues to spot who tin transportation it complete nan decorativeness line.

“There is increasing consciousness of nan domiciled that nan bicycle plays crossed nan board,” Blumenauer said. “It’s nan astir businesslike shape of proscription ever designed. And erstwhile we harvester this inherent advantage of nan bicycle pinch electrification, modernized and domestic, I deliberation it’ll build nan momentum we need.”

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