The on-going trade war between the US and China isn’t the only reason for inflated electric bicycle prices, though it certainly hasn’t helped.
While exceptions were created that helped e-bikes avoid many of the tariffs over the last year, those exceptions expired on January 1 of this year.
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As Bicycle Retailer reported, US companies are already dealing with shifting exchange rates that disadvantage their pricing structures. The US dollar has fallen approximately 10% compared to Chinese and Taiwanese currency in the last year.At the same time, the cost of materials used in e-bike manufacturing has risen steadily. Aluminum and steel prices are up 15% and 20%, respectively, since the beginning of 2020. Rubber costs are up 20%, and even corrugated cardboard used to make the large e-bike boxes is up 10%.
Most supply chains around the world have been disrupted by COVID-19, but the electric bicycle industry was hit particularly hard due to a combination of reduced supply and unprecedented demand.
The electric bicycle industry saw its largest growth ever early in the pandemic when riders everywhere began adopting e-bikes as safer socially-distant transportation alternatives and recreational escapes from lockdown-induced cabin fever.