Eaton and Acuity Brands have announced price increases, the third time this year that Eaton has raised prices and the fourth time that Acuity Brands has raised prices, foreign media reported.
On the reasons for the rise, Acuity Brands said, "" it is due to higher inflation costs, higher raw material costs and the impact of tariffs on parts and finished goods.
The United States announced a 10 percent tariff on finished lighting products imported from China on sept 24, 2018, and said the tariff will rise to 25 percent from jan 1, 2019.
By the time the notice was released, the United States had planned to impose a 25% tariff on finished lighting products from January 1.
The reason for Eaton's price hike is in line with Acuity Brands.
Following a further assessment of product input costs, Acuity Brands announced that for all lighting, lighting controls and other related products affected directly and indirectly by the 25% tariff, a further increase of 15% on the basis of previous price increases, effective from 2 January 2019.
The deadline for receiving orders and shipment of existing prices is December 28, 2018. After that, new orders and shipments are received at the new price.
Eaton has announced that it will increase the price of chinese-made finished goods by 15%, on top of a previous 10% increase, to cover the 25% tariff imposed on January 1.
Price adjustments are also made for finished products that are not from China but contain sub-parts made in China to offset the increased cost of sub-parts.
The receiving and shipment deadline of the existing price is December 31, 2018. After that, new orders and shipments are received at the new price.
2018 is a year of uncertainty for the LED lighting industry.
As the largest exporter and largest import market of LED lighting trade in China and the United States respectively, the increase of tariff will inevitably affect supply chain demand and affect terminal consumers. The choice of price increase of American lighting brands is also a helpless move. It is estimated that more lighting brands will follow the example of price increase in the future.