Trek Bicycles, one of the leading bike brands in the United States, has informed retailers that most of its models will see a price hike in response to the 10 per cent tariff surcharge announced by US President Donald Trump, which has now pushed costs “to a level that needs to be addressed.”

The decision will affect the majority of Trek and Electra bikes, with the company confirming that the price increase applies immediately and includes all backorders.

The company, headquartered in Wisconsin, which manufactures most of its bikes and cycling products in countries including the Netherlands, Germany, Taiwan, and China, said that it had “strategically worked to minimise the impact on key entry-level models”, aiming to preserve affordability in categories most sensitive to price hikes.

“We do this to avoid a ‘run on the bank’ with our inventory and to be equitable to all retailers,” the company said in an email to its US dealer network, according to Bicycle Industry and Retailer News.

“As with any price increase, there are positives for you. The value of your current inventory has just gone up, and moving forward, you will experience an increase in your GP [gross profit] dollars for bikes sold.”

> Specialized reportedly set to increase pricing on all bikes and equipment for US customers to counter Trump tariffs

2025 Trek Madone lifestyle 14
2025 Trek Madone lifestyle 14 (Image Credit: Ross Bell)

By increasing prices for customers, Trek follows in the footsteps of a similar move by another US-based bike industry giant, Specialized, which announced a 10 per cent surcharge to US customer invoices for its new Turbo Levo 4 e-mountain bikes and warned of wider pricing increases starting May 1.

Specialized, which manufactures primarily in Taiwan, said the extra charge will be listed as a separate line item so consumers “clearly see what they’re paying for”.

Trump’s latest trade policies — particularly a sharp rise in tariffs on goods from overseas — have sent shockwaves through the global bike industry. A temporary 90-day pause was announced for most countries, with a uniform 10 per cent surcharge replacing the steeper rates for now.

However, tariffs on goods from China — which accounts for an estimated 87 per cent of US bike imports — have jumped to 125 per cent.

> Trump’s tariffs might just tip the bike industry over the edge

Last week, Giant, one of the largest global bike manufacturers based in Taiwan, warned that if tariffs increase, bike prices in the US could rise by up to 50 per cent.

The company, which has already seen a 62 per cent decline in profits last year due to overstocking and heavy discounting, called the tariffs “absolutely not positive”, adding that if the threatened high tariffs return after the pause, it will “inevitably be forced to reflect the cost” in pricing, further contributing to market uncertainty.

Arnold Kamler, chairman of New Jersey-based Kent International, said his company had already raised prices by 12 per cent this year and may add another 25 per cent. “We’re in quite a quandary now,” Kamler told the Financial Times. “If nothing changes, the only thing that’s going to happen is that bicycle prices will be up 30 to 50 per cent.”

Matt Moore of trade group PeopleForBikes described the situation as an “existential threat,” warning that smaller companies could face insolvency or be forced into mergers.

“Companies with better access to capital and operational advantages will raise prices to cover costs and preserve margins,” Moore said. “Companies that cannot do that may succumb to this new trade environment.”

> “My industry cannot survive”: Tern Bicycles facing $1 million Trump tariff charges for e-bike shipments, as its US manager urges bike industry to “blow up” Republicans “with letters”

2023 Trek Supercaliber
2023 Trek Supercaliber (Image Credit: Trek)

For some manufacturers, the cost increases have brought forth further challenges. Two weeks ago, Taiwan-based Tern Bicycles, which builds many of its e-bikes in Vietnam, said tariffs on standard bicycles had jumped to 57 per cent, and e-bikes to 46 per cent, forcing the company to deal with a potential $1 million customs bill.

“For Tern, the new tariff is simply a non-starter,” said Steve Boyd, Tern’s general manager for North America. The company was forced to scramble to redirect shipments and clear customs before the tariffs take effect but warned that if relief is not found, Tern may be forced to halt deliveries entirely or divert shipments to Canada or Mexico.

Boyd also added that they were exploring alternatives such as expanding production in Portugal to avoid the crippling costs of tariffs on bikes assembled in Vietnam, while also claiming: “I’d be shocked if this could last very long. It’s already crippling the global economy. Even [Trump’s] yes men are going to turn on him at some point.”

> Giant “inevitably forced to reflect cost” of Trump tariffs, as manufacturers warn US bike prices could rise by 50% amid “existential threat” to cycling industry

Meanwhile, UK-based Starling Cycles — which exports to the US — responded to a 10 per cent tariff on British imports by offering a 5 per cent discount on all frames in a bid to offset some of the added cost. Founder Joe McEwan said the move was about “meeting customers halfway” and resisting “a geriatric millionaire telling us who we can, or can’t sell to.”

“We love our USA customers, and we’ll be damned if we leave them out in the cold,” McEwan added.