Lighting Industry Braces for Major Tariff Increases on Imports from China and Vietnam
While making my way through the Atlanta airport on Wednesday, I tuned in to the administration’s announcement on YouTubeTV regarding sweeping new reciprocal tariffs. The news sent shockwaves through industries nationwide—lighting included—as these tariffs directly impact global supply chains.
For an industry reliant on imports from China, Vietnam, and Mexico, these new tariffs introduce significant challenges. With China facing unprecedented tariff levels and Vietnam now included in the mix, sourcing strategies may once again require a major overhaul.
U.S. Manufacturers Gain the Advantage
It’s clear that U.S. lighting manufacturers stand to benefit the most from these changes. While the increase in tariffs on China was largely expected, OEMs operating in Mexico are emerging in a stronger position than anticipated. Meanwhile, companies relying on Vietnamese imports find themselves in a far more precarious spot than many had predicted.
China: Tariffs Surge to 54%, Possibly 79%
Starting April 9, all Chinese imports will be subject to a 54% total tariff, which includes:
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A newly announced 34% reciprocal tariff
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An existing 20% duty tied to China’s role in the fentanyl crisis
If an additional 25% tariff is imposed due to China’s oil trade with Venezuela, total tariffs could soar to 79%.
These increases affect nearly every lighting product category—components, drivers, and finished fixtures alike. In a significant shift, even consumer shipments under the $800 de minimis threshold will no longer be exempt. Beginning May 2, small packages from China and Hong Kong will be subject to the full 54% tariff. Additionally, standard postal shipments will incur a 30% fee (or $25 per package), rising to $50 in June.
Vietnam: Now Facing a 46% Tariff
Once seen as a safe haven from Chinese tariffs, Vietnam is now under similar scrutiny. As of April 2, imports from Vietnam are subject to a 46% tariff. Many Chinese manufacturers expanded operations in Vietnam to sidestep U.S. tariffs—strategies that now appear far less effective.
Mexico: The Tariff-Free Alternative
Mexico emerges as the key exception to these sweeping tariff hikes. Thanks to the U.S.-Mexico-Canada Agreement (USMCA), imports from Mexico remain exempt, making nearshoring and reshoring even more attractive for lighting manufacturers.
What This Means for the Lighting Industry
Many companies report a strong start to 2025. Our sister company, LumEfficient, experienced one of its best first quarters ever. Whether this is due to strong economic conditions, a well-stocked inventory, or distributors rushing to buy before tariff deadlines—it’s difficult to say for sure.
One thing is certain: the coming months will test the resilience and adaptability of the lighting industry as it navigates yet another major shift in global trade policy.