Tern Bicycles Faces $1 Million Tariff Crisis: A Race Against the Clock
Tern Bicycles, a Taiwan-based e-bike maker, is in a scramble to avoid a potentially crippling $1 million tariff fee. This looming charge threatens to disrupt the company’s U.S. operations if shipments don’t clear customs by next Wednesday. The tariff hike, announced by President Trump on April 2, was a sudden blow to the e-bike industry, which had previously enjoyed tariff-free imports from Vietnam. Now, electric bikes face a 46% tariff, with standard bicycles subjected to an even steeper 57%.
The news has taken Tern by surprise. The company, known for its premium e-cargo bikes, wasn’t prepared for a blow of this magnitude. Steve Boyd, Tern’s North American general manager, explained, “Normally, our customs duties are around $20,000 to $30,000, not $1 million.” With little time to adjust, Tern and other importers from Asia are scrambling to find solutions to avoid being hit by these new costs.
Tern’s immediate focus is on getting its current shipments cleared before the deadline. One of their containers is sitting at a California port, risking missing the April 9 cut-off. To beat the clock, the company is planning to send the shipment by truck to its California warehouse, bypassing the original plan to ship by train. This will allow them to clear customs in time and avoid the new tariff charges.
Under the new rules, shipments must be “loaded onto a vessel at the port of loading” and be in transit by the deadline. If goods are withdrawn from a warehouse after the cut-off, they’ll be subject to the tariffs. Boyd is aware that Vietnam’s time zone advantage might help, and he has instructed the factory to stop shipping by April 8, ensuring no products arrive after the deadline.
If this plan doesn’t work, Tern is considering rerouting shipments to Canada or Mexico as a backup. But Boyd is clear: if the tariffs stand, the company could face dire consequences. “With a 46% tariff, there’s no way forward for us in this market,” he said. “If it was just a 10% hit, we could manage. But 46%? We can’t survive that.”
Price hikes are out of the question. Raising costs for retailers and consumers isn’t viable, especially given the competitive nature of the e-bike market. Tern is now hoping that President Trump will reconsider or find a way to lower the tariffs. Reports indicate that Trump recently spoke with Vietnam’s leader, To Lam, which has raised hopes that a resolution might be in the works.
As the clock ticks down, Boyd is urging others in the e-bike industry to speak up. “Many of our industry’s representatives are Republicans. Now’s the time for them to hear from us,” Boyd said. He encouraged the industry to voice concerns through letters to lawmakers. PeopleForBikes, an advocacy group, has provided a letter template for those who need help reaching out to their representatives.
With the April 9 deadline fast approaching, Tern is doing everything it can to avoid the tariff hit, but the future remains uncertain. The stakes are high—not just for Tern, but for the entire e-bike industry in the U.S. The outcome of this situation could determine the viability of many small and medium-sized e-bike brands moving forward.
What are your thoughts on the impact of these new tariffs on the e-bike industry? Do you think small companies can survive this? Share your opinion in the comments!
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