Cheap China e-bikes ‘kick in tooth’ for UK companies | EUROtoday

A authorities determination to scrap tariffs on Chinese e-bikes coming into the UK has been described as a “kick in the teeth for British manufacturing”.

Border taxes have been imposed on Chinese e-bikes following Brexit, retaining the UK according to the EU, however the Business Secretary Jonathan Reynolds has accepted a advice to carry them on non-folding e-bikes from Friday.

The Trade Remedies Authority, the physique liable for reviewing tariffs, stated the transfer permitting cheaper Chinese imports might save shoppers £200.

But UK-based firms have known as the choice “strange” saying it is a blow at a “very scary time” for the trade.

British primarily based e-bike firms expressed considerations concerning the impression of a possible “flood” of low-cost Chinese e-bikes getting into the UK.

James Metcalfe and his brother Lyle run e-bike firm Volt and have a manufacturing unit in Milton Keynes.

They beforehand manufactured their bikes in China, earlier than transferring operations to a manufacturing unit in Poland, after which shifting manufacturing to the UK following Brexit.

“I think this is an odd decision, and a kick in the teeth for UK manufacturing,” Metcalfe instructed the BBC.

“We brought our manufacturing here with assurances that this [tariffs on Chinese bikes] was a long term change. We’ve invested a lot in it. We’re a small business, family-owned, and trying to do the right thing by building a quality product,” he stated.

The UK was already a really competitively priced marketplace for bikes, with no use to herald cheaper bikes from China, he added.

“What’s the benefit? I don’t see any. The government are saying there’ll be savings for the UK consumer, but for years we’ve been pushing government to put through alternative savings like grants and subsidies for customers.”

“Why not do what everyone else has done across Europe? Provide grants and invest in bike infrastructure in the UK,” he added.

Metcalfe additionally questioned why tariffs for folding e-bikes from China remained in place.

“I’m all for protecting the whole industry and I find it odd that they’re protecting one small part of it,” he stated.

On Thursday, the federal government stated it had accepted a advice from the Trade Remedies Authority to revoke anti-dumping tariffs on Chinese e-bikes of between 10.3% and 70.1%, and taxes designed to counteract subsidies of three.9% to 17.2%.

A authorities spokesperson stated: “Defending UK industry from unfair competition is important, which is why we’ve taken the decision to continue protecting UK folding e-bike producers based in the UK, whilst also lowering prices for consumers and importers of other products.”

The spokesperson added that the federal government was “continuing to take action on unsafe e-bikes” and had not too long ago launched a marketing campaign “to raise awareness of the risks of dangerous e-bike batteries and scooters”.

The UK bike trade has endured a troublesome few years following a increase through the Covid pandemic, which noticed a rise in outside train and many individuals selecting biking over public transport.

Post-Covid gross sales dropped dramatically, and plenty of firms have been left with inventory they struggled to shift. Quite a few firms struggled, together with Mercian and Orange Mountain Bikes, or went bust, resembling Islabikes.

David Miall, who runs e-bike firm Wisper Bikes, stated UK companies had been closely discounting in recent times to attempt to appeal to new prospects.

He stated the newest transfer by the federal government, which he described as a “very strange decision”, would carry a “flood” of cheaper Chinese imports to an already overstocked market.

“It’s a very scary time for the industry right now, and this will cause a lot of trouble for a lot of companies,” he stated.

David’s firm designs its bikes within the UK, however manufactures them in Taiwan and Portugal.

He stated he had already been contacted by Chinese bike producers providing very low costs for his or her merchandise.

“They’ve overstocked too, and they now see the UK as a place to dump their bikes,” he stated, including that he might now contemplate focusing solely on fold up e-bikes.

“I think the government are thinking ‘Let’s give e-bikes a boost’ but this has been badly thought-through by people who don’t understand the industry,” he stated.

The Bicycle Association, which represents companies who make and promote customary and fold up bikes, stated it was serving to its members to reply to the brand new guidelines.

“This is a significant decision and it may take some time for the implications for the UK cycle industry and its supply chains to become clear,” a spokesman stated.

“We have for example already requested official clarification of the precise definition which HMRC will be using to identify ‘folding e-bikes’, which are still subject to these measures.”

Electric bikes – or ‘e-bikes’ – are an more and more standard approach to get round for tons of of hundreds of individuals within the UK.

The broad time period ‘e-bike’ is often used for any electric-powered bike, however it may possibly truly consult with very several types of tools that are coated by totally different legal guidelines.

When most individuals consider an e-bike, they image what is actually a traditional push bicycle with a small chargeable motor fitted to make it simpler for the consumer to show the pedals.

But there are additionally much more highly effective electric-powered bikes in the marketplace that are generally lumped in with e-bikes – for instance, some fashions can hit 60mph and are designed for off-road using in rugged terrain.

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