UK imported e-bikes could be £260 cheaper if government follows Trade Remedies Authority recommendation

The Trade Remedies Authority (TRA) has said current anti-dumping and anti-subsidy tariffs on e-bikes from China should be revoked. The TRA say this move could save consumers on average £260 per e-bike, benefit the economy by £51m a year, and result in 31,000 more e-bike sales.

The current anti-dumping and anti-subsidy measures were put in place to protect the EU and UK e-bike market from cheaper products coming from overseas. However, having reviewed the effect of both tariffs, the TRA found that the economic penalty they impose is greater than the benefits they bring.

TRA Chief Executive Oliver Griffiths said that although the existing measures benefit the small number of UK e-bike producers, they damage the economy more broadly, saying:

“The benefits to UK bicycle producers from continuing the current measures on e-bikes would be significantly outweighed by harm to the rest of the economy. We project that removing the measures could save consumers around £260 per e-bike and could benefit the UK economy by around £51 million annually.”

UK e-bike sales reached around £325m in 2023 compared with just £96m in 2018. More growth is projected for the coming years, and the TRA say fewer tariffs could boost e-bike growth.

Both tariffs were part of EU law, and the UK held onto them when it left the EU. The anti-dumping tariff was intended to protect EU and UK producers from being undercut by cheaper foreign producers. The anti-subsidy tariff is there to even out the effect of unbalanced subsidies. Now, the newly independent TRA has reviewed whether these inherited tariffs suit the UK market.

Brompton, one of the UK’s largest e-bike producers, registered an interest in the investigation. Although best known for making folding bikes, Brompton accounts for 60% of all UK e-bike production employment, since they produce electric-assist versions of their folders.

Removing these tariffs could harm for Brompton, who would suddenly find themselves competing against much cheaper products from overseas. Having considered Brompton’s position, the TRA has suggested that the tariffs could remain in place for folding e-bikes, thereby protecting Brompton from being undercut. However, it seems possible that fewer people would choose a folding e-bike if standard e-bikes were hundreds of pounds cheaper than they are now.

Currently, these findings are just recommendations, and it will be up to the next government to decide whether they are worth carrying out. For now, businesses that might be affected by these changes can contribute to the research and comment on the initial findings.

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