Trump’s New Tariffs, E-Bike Prices, and Upway’s Advantage
Written by: Toussaint Wattinne | April 16, 2025 | Time to read 6 min
New tariffs mean the prices of e-Bikes are set to increase. However, the impact on Upway’s prices is minimal, meaning riders are in for the best deals yet.
More about the Author: Toussaint Wattinne, Co-Founder & CEO
I studied at HEC Paris and Sciences Po, and kicked off my career at Uber, helping grow the business across Europe. Upway is a mix of everything I love: entrepreneurship, impact, and bikes. I’ve always had a thing for two wheels, whether it’s climbing mountain passes on my road bike or just getting around town on my e-bike. When I’m not working or riding, I’m usually chasing after my kid or planning the next family adventure.
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Trump administration baseline and targeted tariffs
The hotly anticipated tariff announcement from the Trump administration finally arrived on April 2, imposing an additional 10% tariff on products from all countries. The administration also released a series of targeted tariffs in response to other countries’ tariffs on US products. The additional 10% tariffs go into effect on April 5 and the targeted base (reciprocal) tariffs will take effect on April 9.
Here is a list of targeted tariff rates for countries that are important to the US bike industry:
- China: 145%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- Thailand: 36%
- European Union: 20%
- Indonesia: 32%
- Malaysia: 24%
- Cambodia: 46%
- India: 26%
The latest calculations and reporting by PeopleForBikes states that the additional tariff could mean that “total tariff on adult bicycles imported from China will be 81% and the tariff on e-Bikes will be 70%”, summing together the 10% base tariff, 25% oil tariff, 20% additional tariffs, and 25% steel and aluminum tariffs on certain parts.
How tariffs impact e-Bike prices
“I would say the first impact that tariffs are having in the very short term is making new e-Bikes more expensive, which in fact makes Upway’s offering all the more compelling and attractive and our role more important in making e-Bikes affordable because we already offer up to 60% discounts compared to retail price.”
Parts cost and onshoring assembly
“As far as Upway’s economics and therefore bike prices are concerned, keep in mind that a new bike is the assembly of 100% new parts. For an Upway bike, we keep the majority of original parts and only those that are either too used or non-functional will be replaced. So, the impact of tariffs on the total selling price will be far more limited than on a new e-Bike.”
It is, however, more cost-effective for bike brands to do as much assembly of parts as possible inside the US. Composite parts or partially-assembled bikes have a higher overall value and a higher tariff cost to be paid. These tariffs will likely lead to more brands investing in domestic assembly of their bikes.
“I suspect that tariffs will encourage or force manufacturers to onshore assembly to minimize the impact of those tariffs on their bike prices and make sure that it's only the parts that get charged on those tariffs… The more value you bring onshore, the lower the tariff impact is on your entire cost structure.”
Upway becomes an even better deal
The team at Upway has been keeping close track of the changing landscape and recent tariffs. The upshot of the news, however, is that these policies will actually have a smaller effect on our operations and competitive prices. Upway sources its electric bikes domestically from brands, bike shops, and individuals selling their used e-Bikes. We purchase e-Bikes within the US market, protecting us from any direct cost increases due to tariffs on imported products.
“As far as Upway is concerned, the economic impact is minimal and it makes our offering more appealing, so I would say it’s even a temporary boost to our business, but what we care about the most is the continuous mass adoption of e-Bike, which not only requires Upway to be successful, but also for manufacturers to be thriving”.
New parts are a fraction of Upway’s costs
“So actually, in the very short term, the biggest tariffs and the biggest challenge they lead to is higher prices of new bikes, because those are where the highest value sits in terms of what is imported— parts are only part of our [Upway’s] cost. So the impact of tariffs on our spare parts cost and therefore on the cost of bikes for Upway is very limited.”
Key Takeways
- Tariffs Increase, But Upway Stays Affordable: The Trump administration's new tariffs increase costs on imported e-Bikes, but Upway’s focus on reconditioned bikes and domestic sourcing keeps prices low.
- Push Toward U.S. Assembly: Rising import costs may drive bike manufacturers to shift assembly to the U.S., reshaping the e-Bike industry.
- Upway Becomes Even More Appealing: With new e-Bike prices rising, Upway’s affordable, reconditioned models— up to 60% off retail— offer an even better deal.
