Numerous major names from across the bike industry have filed legal proceedings in the hope of receiving tariff rebates. This comes following the Supreme Court’s ruling that the Trump administration’s use of powers associated with wartime or national emergency to implement the controversial economic policy was illegal.

Several brands of varying sizes from across the industry are suing the US government, Bicycle Retailer & Industry News noting that Trek, Specialized, Shimano, Bell Sports, Tern Bicycle and a host of others have all filed legal action with the Court of International Trade, the brands joining big players from other industries, such as Costco and Toyota, in seeking rebates in relation to tariff costs.

It has been suggested that legal action may not be necessary to recover tariff costs, however there has been a stampede of businesses putting their names forward in the pursuit of rebates relating to the president’s controversial economic policy.

On Friday, the Supreme Court ruled that the introduction of tariffs under the International Emergency Economic Powers Act, presidential powers associated with times of war or national emergency, was illegal.

> “We felt like our backs were up against the wall”: US cycling clothing brand challenging Donald Trump’s tariffs with Supreme Court lawsuit

According to the legal filings, most brands are listing the defendants as the US government, Executive Office of the President, the Customs and Border Protection, and several other figures and bodies associated with the government and administration.

Before Christmas, the court which has received the lawsuits from across the business world stated that it would “determine the appropriate next steps for resolution” following the Supreme Court judgement, heard on Friday.

The uproar from across the bike industry at Trump’s tariff policy has been consistent and sustained over the past 12 months, numerous brands speaking out about the detrimental impact or raising prices in response.

Bike brands including Giant, Specialized, Trek, Brompton and Lauf have all spoken publicly about needing to add a ‘tariff surcharge’ to their bikes, passing on the cost to the consumer.

> US imports of Chinese bikes recover slightly amid uncertainty of Trump tariffs

Lobby group PeopleForBikes even suggested the US bike industry might not recover from the “devastating consequences” of tariffs until the end of the decade.

Bike shop
Bike shop (Image Credit: manny-becerra-unsplash)

The impact of tariffs has been a commonly cited headwind in companies’ financial accounts, while BMC was reported to be slashing a quarter of its workforce in a decision that was “influenced” by uncertainty around the controversial economic policy. High-end component brand Rotor also cited tariffs when shutting its US office back in May.

“Everything that is coming out of the US is too unpredictable”

Over the weekend, Brompton CEO Will Butler-Adams reacted to the Supreme Court’s ruling by telling The Times that regardless of the outcome the folding bicycle manufacturer has “changed our strategy in America” because “the leadership is so unpredictable, anything could happen”.

“Everything that is coming out of the US is too unpredictable. Whether tariffs are on or off, I wouldn’t trust them. I’m not going to sign a five-year lease in this environment… It’s very difficult for business,” he said, explaining how Brompton had shut US stores and was focusing on China as a new market instead.

Will Butler-Adams with the one millionth Brompton.jpg
Will Butler-Adams with the one millionth Brompton.jpg (Image Credit: Brompton)
“These are our own stores and they only sell Brompton. So if the tariff goes up to 25 per cent and we’re then uncompetitive, the whole store proposition is put at risk. The US is the biggest economy in the world, so we’re not going to stop investing. But how we invest has changed. It needs to be more agile.
“It’s [China] our largest market. It’s the second largest economy in the world. And at the moment, the sort of business environment is, we know where we stand. There’s no question, if the political environment warms, that there are likely to be more people in China who sort of see British brands as being friendly and positive.”