Jeff Chen’s Taiwanese factory is churning out carbon and alloy wheels for luxury bicycles headed for the US and Europe, only weeks after Donald Trump’s worldwide tariff bombshell.
However, he questions how long it will last.
Before the additional toll was announced, Taiwan’s bicycle producers were scrambling to meet orders before the northern summer, so they were taken aback by the US president’s original 32 percent levy on the island.
When the heavy duties on Taiwan and several of America’s trading partners were suspended for ninety days, some US customers initially canceled or delayed shipments, but later changed their minds.
With a global 10 percent levy still in place and no clarity on what happens once the three months are up, Taiwanese bicycle companies and US buyers are in limbo.
“They don’t know what to do. There’s no time to respond,” said Chen, general manager of Joy Group, which makes wheels and hubs in Taichung.
Joy Group, founded by Chen’s grandfather in 1971, is one of more than 900 companies assembling bicycles or making components, including wheels, pedals and frames, mostly in central Taiwan, the island’s manufacturing heartland.
As US consumers scramble to import bicycles and parts before the 90-day timeframe expires, some businesses have seen an increase in orders.
Chen attributed the lack of shift in demand for others, such as Joy Group, to inventory left over after COVID-19, when shops stocked up to satisfy the spike in demand for bicycles.
Chen claimed that although US customers had already passed on the 10% duty to their clients, a 32% levy might prevent more orders, which would undoubtedly have an impact on Taiwan.
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