American customs officials said on Wednesday that the United States would begin barring imports of bicycles manufactured in Taiwan by Giant Manufacturing Co. Ltd., saying that they had uncovered information indicating that the company was using forced labor.
U.S. Customs and Border Protection said that it would begin detaining bicycles, bicycle parts and accessories manufactured in Taiwan by Giant effective immediately under what is known as a “withhold release order.”
Giant is the world’s largest bike manufacturer, and its products can be found in large stores like Wal-Mart, along with smaller, independent bike shops. The company has one factory in Taiwan and five in China. It also makes bikes in Europe and Vietnam.
Customs said it was taking action in the wake of an investigation into Giant, which found abusive working and living conditions, debt bondage, withholding of wages, excessive overtime and other indicators of forced labor.
The government said that those factors had allowed the company to price its products for less than what American bicycle producers charge, resulting in “millions of dollars in unjustly earned profits.”
“C.B.P. has a proven track record of cracking down on companies that use forced labor to the detriment of law-abiding U.S. businesses,” the bureau’s commissioner, Rodney S. Scott, said in a statement.
Giant is “committed to upholding human rights and labor protections,” the company said in a statement.
It had already taken action to address the issues raised by C.B.P., including improving employee housing and, since January, covering in full all recruitment fees for newly hired migrant workers, the statement said.
The order only applies to products manufactured in Taiwan and exported to the United States, the company said. It added that while some shipments to the United States may be delayed, supply and sales in other markets would not be unaffected.
Taiwan “has always attached great importance to improving labor conditions,” the Ministry of Economic Affairs said in a statement. The ministries of economy and labor would work together to help Giant resolve the issue, both ministries said.
Customs and Border Protection currently has 53 withhold release orders in effect against various products, including certain cotton, apparel, machinery and electronics, the vast majority of which were imposed before President Trump returned to the White House.
Once the shipments in question are detained by Customs, importers can either have the goods destroyed, sent back overseas or try to prove that the merchandise is legal.
So far this year, the Trump administration has imposed such orders on a Chinese fishing vessel and a South Korean sea salt producer. In March, the administration quietly lifted a withhold release order on a Dominican sugar company that had political ties to Mr. Trump.
Giant Manufacturing was founded in Taiwan in the 1970s. The order comes at a moment of tension in the U.S.-Taiwan relationship, as trade negotiations between the two governments have dragged on for months. The Trump administration is mulling tariffs on semiconductors and other changes to technology policy that could be economically painful for Taiwan, which produces most of the world’s advanced chips.
Ana Swanson covers trade and international economics for The Times and is based in Washington. She has been a journalist for more than a decade.
Meaghan Tobin covers business and tech stories in Asia with a focus on China and is based in Taipei.
Xinyun Wu is a reporter and researcher covering technology and business in China and Taiwan and is based in Taipei, Taiwan.
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