September 22, 2026
A $5,000 Bike Shows Why It’s Hard to Build in America
This article was originally published in Bloomberg.
President Donald Trump’s tariffs are supposed to bring manufacturing back to America. But a bicycle factory in Virginia’s Blue Ridge Mountains shows how the levies themselves often sabotage that goal.
Inside the Lauf Cycles plant in Harrisonburg, a half-dozen mechanics hover over ultra-light carbon fiber frames, threading chains through drivetrains, torquing down bolts and wrapping handlebars in tape. By assembling bikes here, in this former newspaper printing hall, the Icelandic company avoids tariffs the US slaps on imported bicycles — duties that run as high as 48.5%.
Decades of global economic integration mean that products built in the US, from cars to advanced battery packs, typically contain foreign-made parts. Manufacturers didn’t consider it an issue until Trump’s trade war and the Covid-19 pandemic exposed the risks of international supply chains.
But nearly all the parts that go into a Lauf bike — including the company’s signature shock-absorbing fork — come from abroad. Each faces its own tariff. In most cases, there are no US-made replacements available. Last year, Lauf briefly paid levies above 170% on its frames and forks because they were made in China. The tariff on Chinese frames has since dropped to 41% — still steep.
“This is the tariff that only US-based bike builders, such as Lauf, are paying, while those that assemble elsewhere can avoid it,” said co-founder Benedikt Skúlason.
Read the full article in Bloomberg.
More from CNAS
-
CNAS Insights | Strategic Stability with China Will Come at a Cost
U.S. President Donald Trump and Chinese General Secretary Xi Jinping will meet this week for the latest high-stakes summit. A core focus will be extending a trade truce set to...
By Emily Kilcrease & Geoffrey Gertz
-
World Leaders Converge on United Nations General Assembly
Oil fell below $100 as robust flows through the Strait of Hormuz and diplomacy around the US-Iran war tamed a recent rally. Meanwhile, President Trump told Fox News he would “...
By Chris Kennedy
-
JPMorgan Sees No Clear Endgame for Oil Markets
An attack on Saudi Arabia’s East-West pipeline has disrupted a crucial route around the Strait of Hormuz, threatening crude deliveries to Europe and adding pressure to already...
By Chris Kennedy
-
The Trouble with America’s Oil Deal in Venezuela with Francisco Monaldi
Energy expert Francisco Monaldi joins Emily and Geoff to discuss the U.S. government’s unusual oil deal in Venezuela. They get into the decades of missteps and corruption that...
By Emily Kilcrease & Geoffrey Gertz
