POLITICS

This 90-Day Tariff Truce Could Drop EV and E-Bike Prices Fast

May 13, 2025

The 90-day tariff truce slashed U.S. import duties on Chinese goods from 145% to 30%, offering temporary relief for EV and e-bike costs.
Chinese tariffs on U.S. imports dropped from 125% to 10%, easing pressure on American-made products.
Most e-bikes sold in the U.S. are made in China, so the tariff rollback could directly lower retail prices or boost specs.

Most Americans have no idea how close they came to paying way more for that next electric car or e-bike. Prices were already inching up. Tariffs were making it worse. And then? A 90-day tariff truce hit the table. Quietly negotiated in Geneva, the deal is a temporary break in the economic back-and-forth between the U.S. and China, but for EV and e-bike buyers, it could be the cost-cutting gift no one saw coming.

The U.S. tariff on Chinese imports was sitting at a staggering 145%. Yes, 145. That wasn’t a typo. And it was stacked on top of earlier hikes tied to fentanyl trade crackdowns and broad import penalties. Under this new agreement, it’s being rolled back to 30% for 90 days. Meanwhile, China dropped its own duties on U.S. imports from 125% to just 10%.

It could mean lower sticker prices in your local showroom, and real breathing room for American companies trying to keep costs in check.

Image showcasing attendees looking at the features of a Volvo EX30 for the first time at Electrify Expo in New York — _{The Volvo EX30 small electric SUV now built in Belgium, previously only made in China.}

Who wins big?

Car buyers stand to benefit the most from the tariff truce. More specifically, this is good news for anyone considering a Chinese-made electric vehicle or an e-bike priced below the cost of a used Civic.

U.S. automakers that manufacture vehicles in China had been heavily impacted by steep tariffs, which made importing those models into the U.S. costly and difficult. Many companies were forced to either absorb massive losses or pass those costs on to consumers.

With tariffs now temporarily reduced, those same automakers can once again compete in the U.S. market at more reasonable prices. This change affects both well-known brands and some newer names that consumers might not yet recognize.

Some U.S. automakers had been preparing to pull manufacturing out of China entirely, facing unsustainable import costs driven by high tariffs. With the rate now reduced to 30%, companies across the industry have a brief opportunity to reassess. This temporary relief could slow down drastic production overhauls and, unexpectedly, help protect jobs in the U.S., not through reshoring, but by easing the financial pressure that was pushing those decisions in the first place.

On the e-bike front, this tariff rollback creates a clear opportunity for direct-to-consumer brands and startups to recover lost ground. Most e-bikes sold in the United States are manufactured in China, and with tariffs previously ranging from 25 to 30 percent, companies were left with two unpleasant options to either raise prices or absorb the added cost.

With the new tariff reduction in place, that same $2,000 e-bike may now drop in price by several hundred dollars or be upgraded with higher-quality components, without inflating the retail price.

This agreement will not last forever. The 90-day timeline makes it clear that any benefits, like lower prices or better supply, could disappear just as quickly as they arrived.

This tariff truce has a shelf life. 90 days. That’s it. That means the window to buy smarter, or for brands to get ahead, is short. Companies are already scrambling to plan around it. Inventory forecasts. Pricing updates. Supply chain bets.

However, this agreement adds pressure on negotiators from both countries. Neither side wants to appear as though they gave in, yet both are clearly in need of a temporary break. Meanwhile, consumers simply want to buy products without paying more than they did last month.

Tariffs remain far above pre-2020 levels, even with the current rollback in place. This temporary reduction offers some relief, but it does not represent a return to previous trade conditions. The pressure on importers has eased slightly, though elevated costs continue to affect pricing and planning.

Photo of Electrify Expo attendees test riding the AIMA Big Sur matte black electric bike. — _{Electrify Expo attendees test riding the AIMA Big Sur matte black electric bike.}

Okay, so what should you do?

Pay attention. If you are considering buying an electric vehicle or e-bike, especially one manufactured overseas, it would be wise to monitor prices closely in the coming weeks. Several brands have already begun planning discounts. Others may choose to use the reduced tariff costs to improve specifications or increase product availability.

It comes down to basic economics. This is the kind of price change that affects your wallet, even if it does not make headlines or appear in flashy ad campaigns. But the impact is legit.