Lighting Industry Braces for New Trump Tariffs

Uncertainty grows as potential new tariffs on China, Mexico, and Canada loom on the horizon

The lighting industry is bracing for potential cost increases as President-elect Donald Trump prepares to take office next week. Trump has pledged to introduce new tariffs of up to 25% on goods from Mexico and Canada, along with an additional 10% on Chinese imports. These proposals follow the tariffs imposed in March 2018, during the first Trump administration, which significantly increased supply chain costs for lighting manufacturers and distributors.

In a recent social media post, Trump indicated his intention to impose the tariffs on his first day in office, citing a “border crisis of fentanyl and illegal immigrants” as a partial rationale for potentially invoking emergency powers to expedite the measures. While an emergency declaration could fast-track the tariffs, it could face legal challenges. If the administration follows standard procedures, implementation could take several months.

Lighting Industry Exposure to Asia and Mexico

The lighting industry remains heavily reliant on Chinese components, including LED chips, drivers, and other critical electronic elements. Many low-cost LED components, such as 6-cent LED chips or $6 drivers, originate from China. Finished goods like $10 downlights and $20 flat panels also often rely on Chinese manufacturing.