90% of Bicycles Are Made in China... This Company Bets on American-Made Products

Trump's Tariff Threats Rise Ahead of Inauguration... US Small Businesses Concerned
100% Made-in-USA Goal in Bicycle Industry Dominated by China

As threats of tariff bombs from U.S. President Donald Trump, who is about to take office, grow stronger, the American bicycle industry has rolled up its sleeves to reduce its dependence on Chinese-made parts. Some U.S. bicycle manufacturers are even exploring plans to cut the use of Chinese parts, which currently account for up to 90%, down to 20% by the end of next year.

The Wall Street Journal (WSJ) recently reported that Guardian Bikes, a bicycle manufacturer, is building a factory in Indiana and showing efforts to source parts domestically as much as possible. China’s influence on the global bicycle manufacturing market is significant, with more than 9 out of 10 bicycles sold in the U.S. being produced in China. A single bicycle requires 30 to 40 parts, most of which are also made in China.

Interior view of the Guardian Bikes factory, an American bicycle manufacturer (Photo by Guardian Bikes website)

Brian Riley, founder of Guardian, is focused on changing this situation. Currently, 90% of Guardian’s parts costs come from Chinese-made components, but the company has set a goal to reduce this to 20% by the end of next year. Guardian has started producing its own bicycle frames and is seeking suppliers in the U.S. for some parts such as bicycle handles, handlebars, and tire reflectors. Based on this, Guardian expects to replace 60% of its total parts costs with American-made components initially.

Earlier, Riley built a factory in Indiana in 2022 to ensure that manufacturing facilities are close enough to deliver to most parts of the U.S. within two days and to facilitate raw material procurement. However, finding parts that can be sourced domestically was not easy. Although transportation costs decreased by not importing parts from China, the slower production or assembly speed required hiring more employees, which increased labor costs. Currently, Guardian employs 250 workers who produce up to 2,700 bicycles per day.

Founder Riley explained, "We will be able to control every aspect of production to guarantee the quality of every bicycle." The company places American flags throughout its website and states that it is "moving quickly toward the goal of 100% production in the U.S." Guardian’s children’s bicycles are priced between $149 and $399 (approximately 217,000 to 582,000 KRW), which is a price range between D2C bicycles sold directly to consumers through online malls by manufacturers eliminating distribution stages and high-end bicycles sold in bicycle shops.

The reason Guardian is seeking American-made parts is largely due to the Trump administration’s influence. The first Trump administration raised tariffs on Chinese imports in 2018. The tariff rate on children’s bicycles assembled in China was increased from 11% to 36%. Subsequently, the U.S. government excluded bicycles assembled overseas from tariff hikes but removed this exemption again last year, resulting in frequent changes every year. Increased costs due to tariffs inevitably affect consumer prices, leading to reduced competitiveness.

However, it appears that most U.S. bicycle manufacturers are not replacing Chinese parts with American-made ones like Guardian. Another U.S. bicycle manufacturer, Prevelo Bikes, moved its production bases to Taiwan, Thailand, and Cambodia after the first Trump administration raised tariffs on Chinese imports in 2018. The company states that even if assembly is done in the U.S., it has no choice but to import Chinese parts due to cost issues. Additionally, Giant Group, a Taiwanese bicycle manufacturer producing about 4 million bicycles annually, has started producing bicycles in its Vietnam factory instead of China and supplying them to the U.S.

This content was produced with the assistance of AI translation services.