Giant said it will petition US authorities to revoke a ban on imports of its bicycles from Taiwan, as the world’s largest bike maker’s shares slumped over the American measure due to alleged forced labor.

The Taiwanese manufacturer’s stock fell as much as 9 per cent on Thursday after US Customs and Border Protection said its personnel will seize Taiwan-made Giant bikes and parts at the border, citing what it said was evidence of abusive working conditions, debt bondage and other indicators of worker abuse.

Giant said in a statement that it’s “committed to upholding human rights” and will file a petition to seek the revocation of the so-called withhold release order. The company highlighted its implementation of a “Zero Recruitment Fee Policy” since January that it said covers all recruitment-related costs for migrant workers.

The company also said it completed upgrades to employee housing by the end of 2024 and has established internal and third-party audit mechanisms.

The import ban applies only to products manufactured in Taiwan and exported to the US, leaving other markets unaffected. While some US shipments may be delayed, Giant said that supply and sales in other regions will continue as normal.

The dispute comes as Taiwan continues to negotiate on trade with its counterparts in Washington. President Donald Trump said this month he would impose tariffs on imports of semiconductors “very shortly,” a move that could threaten a key made-in-Taiwan product and its economy. --Bloomberg