On a Monday in the last week of April, Ecells founder David Cleveland posted a final message on his Facebook page with a stark message: Ecells, the AWD ebike maker is closing its doors effective immediately. He blamed the 145% tariffs on China imposed by Trump in addition to supplier problems and other issues.
It was the first company in the ebike world to close its doors since April 2nd when Trump started the trade war. A handful of American jobs were lost. More companies are expected to close their doors soon as the extremely high tariffs start to take hold. I’ve heard that directly from the CEO of one of the ebike world’s top companies.
Already many companies are increasing their prices to catch up to the ever changing tariffs. I regularly get new emails with messages about price increases coming. Ride1up was the latest.
Then I saw the following story about my friends at Spark Cycleworks.
In North Branford, Connecticut, a small but innovative e-bike company is facing unprecedented challenges due to recent tariff policies. Spark CycleWorks, a team of five dedicated individuals, has been designing and building custom electric bikes and street-legal mopeds for the past seven years. However, the recent announcement of tariffs by the Trump administration has brought their operations to a grinding halt.
Matt Schell, the owner of Spark Cycle Works, expressed his concerns about the devastating impact of these tariffs on his business. “We haven’t sold a bike in 5 weeks. Ever since the announcement came from the Trump administration, everything froze,” Schell stated. The company’s unique selling point is their fully customized electric bikes and mopeds, which can reach speeds of up to 35 mph.
While Spark CycleWorks prides itself on local manufacturing, with welding, painting, and seat production all done in Connecticut, they rely heavily on Chinese imports for critical components. The computer, motor, and batteries, which constitute about 50% of the production cost, are sourced from China. Schell emphasized the lack of alternatives, saying, “There’s no other option. I got nowhere else to go.”
The impact of the tariffs is severe. Schell revealed that their mopeds, which currently sell for about $4,500, could see a price hike to around $7,000 if the tariffs persist. This dramatic increase threatens not only their sales but also the very existence of the company.
The situation is further complicated by an incoming shipment. “I actually have a shipping container on the water,” Shell explained, “and that shipping container got hit with 45% tariffs.” This unexpected cost increase puts additional strain on the company’s finances and inventory management.
The uncertainty surrounding the tariff situation has made decision-making extremely challenging for the small business. Shell admitted that they are already having difficult conversations about potential cuts. “If we don’t sell parts, we don’t sell bikes within a week, we’re going to have to cut,” he said, hinting at possible job losses.
While Spark Cycle Works has overcome challenges in the past, including navigating through the pandemic and recovering from a burglary where dozens of bikes were stolen, Shell sees this situation as uniquely problematic. “We’re just stuck in this endless loop,” he lamented, adding, “All you can do is take it day by day and try to count your pennies and keep it small, but you also have to be realistic.”
The gravity of the situation is not lost on Schell or his team. He’s even advised his employees to start looking for other jobs, acknowledging that while they’ve faced significant challenges before, “this has been the absolute worst.”
As Spark Cycle Works grapples with this crisis, their story serves as a stark reminder of the far-reaching impacts of trade policies on small, innovative businesses. The future remains uncertain for this Connecticut-based e-bike company, as they navigate the choppy waters of international trade disputes and try to keep their unique, locally-manufactured electric bikes on the road.