In the first half of this year, the global trade war initiated by the Trump administration in the United States dealt a severe blow to the bicycle industry. According to statistics from China’s customs authorities, in the first five months of this year, China exported 2.475 million bicycles to the United States, a year-on-year decrease of 35.2%. The share of exports to the United States dropped from 19.6% of the total in 2024 to 11.7%. The United States has long been the largest market for China’s bicycle exports. However, high tariffs have forced bicycle industry companies, which already operate on low profit margins, to cease direct exports to the United States, with most companies currently in a state of suspension and observation. Among them, Taiwanese bicycle company Merida has seen its stock price plummet due to tariff impacts and investment impairments, ranking among the top in the industry. However, as inventory pressures ease and demand for electric bicycles rebounds, Chinese companies including Merida are gradually regaining confidence and demonstrating resilience.

Merida Industry announced that its cumulative revenue from January to June this year reached NT2,940,228,000.00, a year-on-year increase of 0.9%. According to the latest financial report, net profit for the first quarter reached NT101,995,761.00, a year-on-year increase of 0.7%.

In response to the US imposing a 10% tariff on all imported products, Merida stated that its brand customers have all increased retail prices in the US market, and that it has not yet been asked to share the related costs. It also pointed out that despite the uncertainty surrounding US tariff policies, new vehicle sales remain strong. Overall, the gradual recovery of the European and American markets and ongoing inventory reduction are expected to drive new demand momentum. Merida also stated that its factories in Taiwan have benefited from the growth in demand from European and American markets, leading to an increase in new orders. Since major European and American markets have imposed tariffs on products originating from China, the majority of its global export orders are manufactured in Taiwan.

From a sharp decline in stock prices to regaining confidence, the resilience of Chinese bicycle companies has proven that “there are opportunities amid crises.” As demonstrated by Merida’s transition to electric bicycles, only innovation and global expansion can help companies weather the storm of trade wars.

Data source: Bike Europe, CCCME