Taipei: Leading Taiwanese bicycle brands Giant Manufacturing Co. and Merida Industry Co. have announced initiatives to combat the impact of U.S. tariff policies introduced by the Trump administration.

According to Focus Taiwan, the United States declared in early August that a 20 percent tariff would be imposed on imported goods from Taiwan, effective August 7. This new tariff will be added to existing most favored nation (MFN) duties and other industry-specific trade remedy tariffs, bringing the total tariff on Taiwan-made bicycles to between 25.5 percent and 31 percent.

Despite the increased tariffs, Giant expressed a level of composure, noting that the new base rate aligns with its expectations. The company believes this will reduce uncertainty, allowing Taiwanese exporters to implement countermeasures effectively. Giant’s strategy involves leveraging its global manufacturing base, which includes facilities in China, Hungary, the Netherlands, and Vietnam, to adjust production and shipments accordingly.

While the U.S. remains a significant market for Giant, the company anticipates only a minimal impact on its global sales in the short term. In response to the new tariffs, Giant has suspended promotional campaigns in the U.S. that involve discounts and increased retail prices by 10 percent to offset the rising costs. The company plans to monitor the situation closely to determine if higher prices will affect consumer behavior and adjust its marketing strategies as needed.

On the other hand, Merida has acknowledged that the tariffs, coupled with growing trade protectionism, have pressured exporters’ profits and prompted a restructuring of the global supply chain. Merida intends to maintain a flexible global shipment strategy to balance the new tariffs with its financial performance. The company does not view the 20 percent tariff as a competitive disadvantage compared to its rivals in China and Vietnam, where the tariffs are 30 percent and 20 percent, respectively.

Merida emphasized that the U.S. market is not a major component of its global sales portfolio. For its U.S. customers, Merida plans to collaborate with them to develop strategies to adapt to the new market conditions. The company clarified that bicycles produced in China are primarily for the Chinese market, with no finished products shipped to the U.S. from there.