Riley has had a desire to use U.S.-made parts since before the November presidential election of Donald Trump, who pledged to impose steep tariffs on imports from China.
Riley, the founder and CEO of a children’s bicycle manufacturer, said he hopes the tariffs will make U.S.-made bikes and parts more competitive with those made in China and hasten the transition to U.S.-made parts. . But it’s still a tall order. Chinese manufacturers have dominated the bicycle supply chain for decades.
Almost all bicycles sold in the United States are imported, with the majority made in China or assembled from Chinese components, according to industry estimates and trade data. A typical bicycle consists of 30 to 40 parts, most of which are made by various Chinese manufacturers.
Currently, parts from China account for about 90% of the total cost of Guardian parts. Riley expects that number to be around 20% by the end of next year. Guardian has begun producing its own bicycle frames and is working to source parts such as grips and reflectors in the United States. As a result of Guardian’s new manufacturing, U.S.-made parts could account for about 60% of the cost.
Riley moved production to the United States because they wanted to create safer bicycles that would prevent head-heel braking accidents like the one that injured my grandfather many years ago. Many of the bikes sold at retailers such as Walmart and Target are not fully assembled when they are shipped from overseas to retailers, so manufacturers cannot oversee final assembly.
“By controlling every aspect of production, we can ensure the quality of every bike that comes off the assembly line,” he said. Guardian children’s bikes range in price from $149 to $399. This results in higher prices for the company’s direct-to-consumer bikes. A middle ground between mass-market brands and luxury brands sold at bicycle shops.
Moving production to the United States is not a viable option for all bike companies. After President Trump raised tariffs on Chinese imports in 2018, luxury children’s bike maker Prevelo Bikes moved production to Taiwan. After that, production expanded to Thailand and Cambodia. Prevelo bikes range in price from $240 to $1,400. Jacob Luban, Prevero’s CEO, said the company’s factories are highly specialized with expensive machinery.
“I’m not in a position to build a factory here. We need a bigger movement on behalf of the entire industry if we’re going to get back on the ground,” Ruban said.
Even if Prevero were to assemble the bikes here, it would still be assembling the bikes using foreign parts that would be subject to tariffs, Luban said.
Major manufacturers are also shifting production in response to U.S. tariffs on China. Giant Group, a Taiwanese bicycle company that produces about 4 million bicycles a year, recently opened a factory in Vietnam because the United States imposes low tariffs on imports from the country, a Giant spokesperson said. said. The Vietnam factory currently has the capacity to produce 100,000 bikes a year. Giant also has facilities in China and Europe.
Riley chose to locate the factory in Indiana because it is within two-day shipping distance from most locations in the U.S. and near steel mills, so he would eventually manufacture the frames himself. This is because we can procure materials on time.
Opening a factory in the United States was not easy. When a local ironing board manufacturer went out of business, Riley was able to hire a group of skilled workers. Initially, workers took a long time to assemble the bikes, assembling 100 bikes a day. Increasing speed and efficiency required continuous adjustments to time and assembly lines. Guardian’s higher labor costs were partially offset by lower freight costs associated with shipping individual components from China rather than mostly assembled bikes.
“We had to be prepared to die. We had to be prepared to lose money for a while to get to the other side of the strategy,” said Riley, 37.
The factory’s 250 staff can produce up to 2,700 bikes a day, giving Guardian the scale to begin contracting with U.S. parts manufacturers.
Guardian plans to begin manufacturing bicycle frames at its factory this year using U.S. steel. The bicycle maker asked its Brazilian rim supplier to consider a facility in Indiana near Guardian’s factory. Guardian is also considering manufacturing the rims in-house. The bicycle manufacturer approached a U.S. supplier who could provide grips and reflectors. Riley said other labor-intensive parts, such as hubs and cranks, can be difficult to source in the United States.
During President Trump’s first term, tariffs on preassembled children’s bicycles from China rose from 11% to 36%. Assembled bikes were then exempted, so Guardian paid duty on imported parts, while some of its competitors paid no duty on imported assembled bikes.
Since the U.S. lifted its exemption for assembled bikes in 2024, the cost of manufacturing Guardian bikes has become comparable to other bikes sold in the U.S., Riley said. Additionally, President Trump has proposed cutting the corporate tax rate on companies that make products in the United States from 21% to 15% and expanding tariffs on foreign products.
“Everyone says it’s impossible to build bikes here,” Riley said, but he said his factory shows that’s not the case.
Email Natasha Khan at natasha.khan@wsj.com.
