What Will The LED Industry Be Affected By Trump's Tariff Increase To 200 Billion US Dollars?

- Jul 13, 2018-

In July 10th, the Trump administration launched a plan to increase tariffs on China's $200 billion commodity, and released a list of target products. LEDinside the first time, according to this list analysis, the LED industry will be affected.

The first round of the tax project on industrial intermediate goods was limited. In 2017, China's export to the United States was about $175 million, so the impact on China's LED industry was quite limited. The main impact was CREE and other American Lighting factories and the need to buy LED from China.

The second round of 200 billion covers a wide range of LED products, involving up to more than 10 items of LED and lighting items and a large amount of trade, and China's exports to the United States are up to $about 5000000000 in the main lighting products in 2017.

Since the United States has been an important export market for China's LED downstream industry, including lighting and other industries, if the 200 billion US dollar tariff project has been passed, China's LED related industries will inevitably suffer.

However, because of the obvious advantages of China's lighting industry, a global industrial cluster has been formed. Compared with the other regions of the world, there is an obvious comprehensive cost advantage, so more than 85% of the LED lighting products in the world are assembled and produced in China.

Even with more than 10% tariffs, it is difficult for us consumers to get alternative products from other areas in the short term, and 10% of the extra tariff costs will be shared between American consumers and Chinese lighting manufacturers.