A 90-day pause brings little relief to cycling brands already bruised by trade chaos and the removal of the de minimis rule.
Josh Weinberg, Suvi Loponen, Unsplash, Dave Rome
When Susan Cronin, owner of Champion System USA, heard about the **90-day tariff reduction** between the US and China, anticipation turned to dismay as the details unfolded. The relief, it seemed, could do little to mend the bruises already inflicted upon the **cycling apparel industry**.
“It does not fix the initial chaos created,” Cronin told Escape Collective. “I can never get back the time required to figure out what to do, how to communicate that, and try to plan. I don’t expect to recover all the sales we have lost due to the tariff surcharge we had to add, either. A lot of damage is already done.”
Champion System USA finds itself in a made-up community of cycling brands caught in a whirlwind of upheaval. The temporary rollback of tariffs from stratospheric triple digits to a mere 30% on goods from China has proven insufficient against the undercurrents of uncertainty and disappointment. Despite this brief respite, hard decisions loom thick on the horizon.
The Irreversible Disruption
From small startups to international giants, the **tariff chaos** has left no brand untouched, including Ornot. Proudly producing its **Magic Shell jacket** in San Francisco, Ornot’s CEO **Matt Quann** recognizes that even local production cannot fully shield them from global trade woes. He poignantly reflects:
“We make them just south of San Francisco; we can ride our bikes there. This place is super high tech. But the US may soon become a land where high-tech cycling apparel is no longer made.”
As Quann elaborates, the **Magic Shell** is meticulously crafted using ultrasonically bonded materials, with few US facilities equipped to handle such sophisticated production. Even with the recent tariff reductions, the cost of manufacturing high-tech garments remains stratospheric, especially when reliant on materials like Polartec’s Power Shield Pro, mostly produced in China.
Tariff Impact on Materials
This brings us to the crux of the matter: the exorbitant costs associated with importing essential fabrics. According to the US Trade & Tariff Data, the **bulk of cycling-specific garments** shipped to the US hail from Vietnam, India, and China, with tariffs skyrocketing as high as **185% on cycling jerseys** from China during the recent trade tensions.
Quann laments the situation, stating,
“It’s really expensive just for the fabric,” which has seen a hike with each new tariff round.
The Uncertain Future of Apparel Brands
As Cronin expressed when tariffs reached 185%,
“Honestly, this level of tariffs cannot be sustained. That’s not going to work.”
Yet, even with the recent reductions, the clock is ticking for brands like Champion and Ornot, who now face a narrow window for strategic planning amid a backdrop of incessant policy fluctuations.
Notably, the **removal of the de minimis exemption** has compounded the struggle. While bikes and components have frequently been underscored in discussions about tariffs, **cycling apparel** has equally been thrown into chaos, urging brands to rethink their production strategies.
Conclusion
In a landscape where **tariff whiplash** strains financial predictions and customer expectations, many apparel brands are left wrestling with the uncertainty. As they navigate these tumultuous waters, it is critical for both industry insiders and cycling enthusiasts to remain informed, agile, and ready for a future that remains uncertain.
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