Executives in the Lighting Industry Weigh in on Tariffs
UPDATED 4 FEB 2025, 07:39 EST, with Signify quote. UPDATED 3 FEB 2025, 10:32 EST, with Acuity quote.
We contacted several industry leaders for their insights. All quotes, except those from Signify and Acuity, were gathered before President Trump announced a 30-day pause on the Mexican and Canadian tariffs.
A spokesperson for Signify commented, “China currently accounts for less than 20% of our imports into the US, which has reduced substantially since the last round of tariffs were implemented. When the first tariffs were put in place on China, we were able to adapt without impacting our margins. We are confident we can continue to adapt as we have in the past. For Mexico, we believe we are on a par with the rest of the market and have the tools at our disposal to adapt if we are required to do so. We continue to build a diversified manufacturing and supplier footprint with capacity in multiple regions, including India and Malaysia, that is fit for responding to a changing geopolitical environment.“
A spokesperson for Acuity Brands explained, “Acuity has demonstrated that we have dexterity in how we operate, enabling us to continue to execute in dynamic market conditions. Since the identification of potential tariffs, we have proactively prepared for their possible implementation. We will continue to focus on the factors within our control, keep our stakeholders informed, and take actions as needed.”
Charles G. Stone II FIALD CLD IES LC LEED AP BD+C, Founder, President New York & Seattle, FISHER MARANTZ STONE
“Will projects slow down or stop? I have no idea. Maybe the tariffs will be short-lived. Note that we already have regulations on certain government projects requiring “made in America“ products. Grab some popcorn and watch the show.”
Steven Rosen FIALD, IES, CEO/founder, Available Light
“I am deeply concerned about the current state of the AIA Architecture Billing Index. Over the second half of 2024, October—the month before the election—was the only month to show positive growth. Beyond that, the index has reflected weakening conditions, fueling uncertainty, anxiety, and economic pressure.
“Tariffs will only worsen this situation. Since it is the clients—not the exporting countries—who ultimately bear the cost, increasing tariffs on lighting equipment from China, Mexico, and Canada will further discourage investment and delay construction projects. This added financial burden will compound the existing hesitancy to put shovels in the ground, exacerbating economic inertia.
“Tariffs are an inefficient and short-sighted strategy which are likely to provoke retaliation from affected countries and risk escalating into volatile trade wars. Instead of punitive measures, we should focus on proactive solutions—namely, policies that incentivize and reward domestic manufacturing. Only through strategic, long-term investment in domestic production can we restore confidence and foster sustainable economic growth.”
AIA Architectural Building Index
- December 2024: 44.1
- November 2024: 49.6
- October 2024: 50.3
- September 2024: 45.7
- August 2024: 45.7
- July 2024: 48.2
Avraham Mor, CLD, IALD, Founder & CEO, Morlights
“Our projects and our clients do not have an extra 25% to spend on lighting and controls. If they had an extra 25%, they would likely have done a different design or updated other elements of the building. My understanding is that most LEDs and drivers come from these markets where the new tariffs have been implemented.”
Marie Paris, CEO, Targetti
“My opinion is that the tariffs won’t last long enough time to impact our industry significantly. I think there will be some negotiated agreements especially with Canada and Mexico. The impact of China tariffs could impact manufacturers relying on China suppliers more significantly, which isn’t the case with Targetti.”
Chip Israel, FIALD, FIES, CLD, LEED-AP, LC Co-CEO and FOUNDER, Lighting Design Alliance
“I think the delay actually started in October. The political scene and interest rates have had an effect on new projects going forward as developers took a wait-and-see position. Construction was also stymied by the inability to fund large-scale projects and the exorbitant construction labor rates. Projects in the pipeline continued, but as always the VE effort in the later stages decimated the lighting budgets. Client confidence was growing and several of our ownership teams predicted a busy 2025, but now we will need to wait an see the effect of last week’s tariffs. If Canadian lumber prices are included, it would also hamper Los Angeles fire-related rebuilding effort.”
On 31 JAN, NEMA President and CEO Debra Phillips issued a statement that said, in part, “The electroindustry has taken major steps to reduce reliance on Chinese imports since 2018, decreasing China’s share of U.S. imports of electroindustry goods from 28.2% to 17.9%, while significantly growing electroindustry trade across North America by 36% spurred by USMCA.
She ended her statement saying, “NEMA looks forward to actively engaging with the Trump Administration and Congress on trade and tariff policies that support our shared objectives while promoting the electroindustry’s growth and competitiveness.” Read her full statement here.