Checking the EdisonReport Library on Tariffs: What Happened Last Time?
The lighting industry has responded differently to tariffs. Some companies absorb costs, others maintain prices, and some increase them. We reviewed our EdisonReport library to analyze past trends on tariffs. We wanted to see what happenned last time. Here are a few actions companies took in 2018
2018: A few Companies Absorbing Tariffs or Maintaining Prices:
- Cree: In July 2018, Cree announced it would absorb the 25% tariff increase on its LED products. The company chose not to pass these additional costs onto customers.
- JESCO Lighting: In November 2018, JESCO committed to maintaining current pricing despite a 10% U.S. tariff, and planned to uphold this through the first quarter of 2019, even with a potential increase to 25%.
- DMF Lighting: As of November 2018, DMF Lighting announced it would not raise customer pricing in response to mounting tariff pressures, aiming to provide stability for ongoing and future projects.
- WE-EF Lighting USA: In June 2019, WE-EF confirmed it would not implement price increases due to Chinese and Mexican tariffs, as their products are manufactured in the U.S. and Germany, ensuring an uninterrupted supply chain.
- SATCO/NUVO: In May 2019, SATCO announced it would absorb the initial 10% tariff and maintain current pricing until July 1, 2019. However, due to ongoing trade issues, they planned a 15% price increase on certain products effective July 1, 2019.
2018: A few Companies Announcing Price Increases:
- RAB Lighting: In September 2018, RAB announced a price increase ranging from 8% to 14%, citing tariffs as the primary reason.
- LEDVANCE: In September 2018, LEDVANCE communicated a price increase due to tariffs and inflationary pressures.
- Eaton Lighting: On 21 September 2028, Eaton Lighting announced a 10% increase. This increase was in addition to a previously announced 6% increase. Eaton Lighting was one of several names Eaton used for Cooper Lighting.
Some of the above companies adjusted their plans as various tariffs were delayed. These varied strategies highlight the industry’s adaptive approaches to tariff challenges.