LED Tariff driving prices up

Light Emitting Diodes (LED) now have an additional 25% tariff on Chinese manufactured products. More than 85 percent of LED lighting products are manufactured and assembled in China.  The lighting businesses in China has great advantages in overall cost compared to other areas and has therefore become the global center to produce lighting products. As a result, it will be difficult for the consumers in the U.S. to find alternatives to replace LED tariff products.

Buyers in the U.S. are seeing price hikes on computers, phones, thermostats and other everyday items such as those that use LED lighting. The price pressure from the tariffs coincides with price increases announced by major US lighting suppliers.

The current tariff list addresses mainly intermediate goods in the lighting industry making manufacturers pay more for the cost of goods in making the product.  This increased cost is then passed on to the consumer in a higher price of goods. Ironically, the new LED tariff majorly effects U.S. based companies, who have factories in the U.S. but buys the intermediate products from China for manufacturing.

Consumers can expect even more price increases in the future as there will likely be additional LED tariffs placed on lighting products.  The Chinese government, which has for over a decade identified the LED lighting industry as a key strategic sector for support, says it will retaliate with tariffs ‘of the same scale’.  In addition, the US government has released a second list of items they are proposing additional tariffs on anywhere from 10% to 25%.

If you have a lighting project in mind, the sooner you get started, the better pricing you can expect to have.  At this point we are working through inventory that has already been shipped to the US or is partially manufactured in the U.S.  We have however been informed of pending price increases from most of our suppliers.  So now is the time.