Following the news that Rose Bikes will be canceling all UK orders
and will no longer ship any orders to the UK, citing Brexit, we decided to dig into what a potential No Deal Brexit will mean for customers buying bikes from Europe.Is a No Deal Brexit guaranteed?
At this stage, No Deal is not guaranteed. Talks are still ongoing between UK Prime Minister Boris Johnson and President of the European Commission Ursula von der Leyen to try to push a Deal over the line. The situation is evolving rapidly but the main sticking point is around the rights for EU states to fish in UK waters.
The pair have until December 30, when the Transition Period ends, to strike a Deal otherwise the UK will leave the EU with No Deal and will begin trading with the bloc using World Trade Organisation rules.What does this mean for bike prices?
If a No Deal happens, then Global Tariffs will kick in. Britain previously enjoyed free trade with the EU, which meant no tariffs, but if a Deal is not struck then these tariffs of 14% for bikes, 6% for e-bikes and 4% for most parts will take effect immediately. It is almost certain that these prices will be passed directly onto the customer.
YT is one of the brands to already confirm this will happen
. It said, "Before Brexit, the total price you paid was the sum of the bike + bike box + shipping + 20% VAT for the UK. YT will still be able to charge the entire fees upfront, but the following two extra charges will occur; import handling costs to the UK, and customs duties on the value of the goods."
Canyon also said: "We’re doing all we can to minimise disruption while we modify our processes to comply with new legislation as a result of Brexit. This includes changes to our pricing format to include any duties applicable to the products ordered."
For non-EU bikes, we previously reported that bikes entering the UK will get 0% tariffs
for up to 12 months following a No Deal Brexit, which is down from the 17% duty currently applied. This should make non-EU bikes cheaper for UK consumers and there is no indication this legislation has changed at the time of writing.What about shipping?
Shipping costs are already increasing on bikes being sent from the EU thanks to a fixed import fee of £85.50 that has been introduced on bikes. Prices are likely to stay high in the event of a No Deal Brexit, that is if you can get a bike shipped at all.
Rose Bikes has already stopped shipping to the UK as reported yesterday, Canyon has currently paused all shipping
until 11 January and bike-discount.de simply states
, "Please note that shipping to Great Britain and Ireland is currently not possible!" YT has also said, "we will not be shipping any soft goods, small parts, or accessories to the UK for the time being."
We don't expect these pauses on shipping to last forever but until the industry has a clearer picture of what the situation going forward will be, it looks like it's going to be hard to get stuff delivered from Europe without a significant cost.What next?
Brexit is currently a moving goalpost with talks still ongoing and No Deal not yet a certainty. For now, it looks like brands are looking to cover themselves in case of this worst-case scenario but a Deal seems closer day-by-day and a trade agreement would change the situation again entirely.