Answering your tariff questions

April 10 Update:

It's been an eventful week in the bike industry - and beyond!

Several significant changes to tariff policy were rolled out, then quickly cancelled, modified or paused. American businesses, big and small, scrambled to come up with a Plan A, B, C and D to continue sourcing quality components and materials at a reasonable cost, given continued uncertainty about what comes next. 

In the short term, our costs for many components will rise sharply, and we are preparing for possible supply chain disruptions as component manufacturers grapple with ongoing changes. 

We now expect a price increase to take effect on Wednesday 4/16.

If you plan to buy an ebike in 2025 - Bunch or otherwise - you'll save money by making your purchase as soon as possible. 

Answering your tariff questions

Tariff changes are in the news - and our families have been reaching out to ask how these changes will affect your bike life. 

We don't have all the answers, but we'd like to share what we know so far and what you can expect from Bunch. 

How do tariffs work?

A tariff is a tax on imports. When an American company imports goods from another country - for example, when we import Tektro brakes to install on our bikes - we pay a tariff to the U.S. government, in addition to paying Tektro for the parts.

We've always paid tariffs on some components. However, in recent months, the rate we pay on every component of our bikes has skyrocketed - with even more dramatic increases announced this week.

The result is that our costs per bike are over $1,100 higher than they were one year ago. 

This same math will affect many US businesses, big and small. Even companies that assemble or manufacture our products in the US rely on an interconnected, international trade network to source components and materials. 

Our costs have risen sharply, and that means our prices will have to increase as well in order for us to keep our business sustainable.

Why not just build it in the US?

In fact - we already do!

We build our bikes at our warehouse and HQ in Denton, Texas with our team of experienced Bunch mechanics, most of whom have been with us for years. 

However, we do import many components from manufacturers located overseas. This is where the manufacturing capacity and expertise for top-quality ebike components currently exists. 

For example, we're proud to use Tektro Auriga E-Twin+ brakes on our bikes. Tektro is a top-quality brand and these are the best, beefiest brakes that exist on the market for trike use. Tektro brake components are manufactured in China and Taiwan.

To the best of our knowledge, there is no company manufacturing a comparable product in the US. Even American companies like Hayes manufacture components in China or Taiwan and would be subject to the same tariffs.

If we want to put brakes on our bikes - import is our only option!

What about "Made in the USA?" 

Even though we build our bikes in Texas - they cannot officially be labeled as "Made in the USA."

This is because a bike's official country of origin is assigned based on where the frame is fabricated. We fabricate our frames to our custom design in a sophisticated, top-quality factory located overseas.

Our facility also fabricates frames for several excellent European cargo bike brands. Our teams have worked closely together for years and we have the utmost trust in the quality and reliability of their work.

If we fabricated our frames in the US, our bikes could be labeled "Made in the USA." However, we would still need to import raw materials (like steel) and most other components (like brakes) and our tariff exposure would stay about the same.

Unfortunately, even bikes labeled "Made in the USA" are likely to see significant price increases in the weeks to come.

NEW: What would it take to bring more manufacturing back to the US? 

We think this is a worthwhile goal that requires long-term strategic planning, investment and development. Factories aren't built overnight - they are the result of years or decades of planning and expertise. 

The Domestic Bicycle Production Act is a great example of thoughtful legislation which could help move more bike frame and component manufacturing back to the US over time. It includes incentives for building manufacturing capacity, tax credits for domestic production, and a phased-in tariff structure that would allow US brands to continue building bikes today while increasing our capacity for tomorrow. 

We think this is a more practical long-term approach than introducing volatility and chaos into the supply chain with frequent tariff changes! We support American groups like People For Bikes in continuing to advocate for sensible policy initiatives like this one. 

What about Canada? 

We are closely connected to our Canadian neighbors, and we will continue to prioritize prompt and excellent support for you through our Edmonton service depot. 

Because we already pay import tariffs on our frames and components, our ebikes are not considered to be "US products" and we are not subject to additional tariffs when we ship our bikes from the US to Canada. 

Price increases will affect all our customers, but there will be no additional tariffs for Canadian purchase and we will continue to cover all customs brokerage and import logistics for you on our side!

When & how will prices change?

UPDATE 4/10: We now expect a significant price increase to take effect Wednesday 4/16. 

From 4/4: Unfortunately this is where answers are most elusive.

It's possible that the tariffs announced on April 2 will see some changes in the days and weeks to come. Some countries or industries may negotiate for lower rates; Congress may set limits on the President's tariff powers; or everyday consumers may pressure the administration to change course. 

We don't want to add to stress and uncertainty by repeatedly raising and lowering prices. Our current plan is to wait until later in April, evaluate the situation at that time and then make any needed changes.

That said, if the tariffs as stated take effect, we will very likely need to implement a significant price increase on all bikes and many accessories, on or before May 1.

Will Bunch Bikes be okay?

In a word - yes.

This is a challenging and unpredictable time for all small businesses. But we are better equipped than most to weather the storm.

We already run a very tight operation with a small, highly committed team and little waste. Our priorities are clear to us - safety, reliability and exceptional service - and those values help us navigate through uncertain times.

We increasingly serve families who are using their Bunch Bike as a car replacement - not a leisure item. In the bigger picture, trading a car for a cargo bike is still a sensible choice for frugal times. That's why our sales have stayed strong even as prices have increased.

Higher prices are hard on our families. We'll always strive to keep our bikes as accessible as possible.  But even with factors we can't control - like these tariffs - we believe our model is sustainable now and in the future.

Should we buy sooner? 

UPDATE 4/10: We now expect a significant price increase effective 4/16. We do recommend purchasing your bike or accessories ahead of this date.

We don't encourage any form of "panic buy." When the season is right for your family - we'll be here!

That said, if you do plan to purchase a cargo bike in 2025 - you'll save money by placing your order before the price increase hits.

Budget strategies

* We offer monthly financing at 0% for 12 months or up to 36 months with interest.

Use "Pay over time with Affirm" to see your options. (If not showing up for you - try "Checkout as guest!")

* You can request delayed delivery.

We are not able to freeze prices - ie, hold the current price for you until after the price change. 

However, if you wish, you can place your order now to lock in the price, then hold delivery until a later date. From there, you can cancel your order at any time.

Our 30 day trial and return period only begins once your bike is delivered!

* As of this writing, we have 3 open box bikes still remaining online, starting as low as $3999.

These demo and older model bikes are not eligible for our trial and return program but are otherwise guaranteed to work perfectly for you and will come with our full manufacturer warranty.

Questions or feedback?

We're here for it!

You can reach out to us via email or contact form or call or text us anytime 940-536-0597.

We're looking forward to connecting with you!

Thank you to Kristen Pace of Better With You Photography for the gorgeous family photo.