UPDATE: Since this article was written a few hours ago, I have received a text alert from the Wall Street Journal that China has announced it will increase U.S. tariffs from 34% to 84%.
Your humble editor is in Europe this week attending Euroluce. As I write this, a new round of tariffs on Chinese goods has taken effect, pushing the total to a staggering 104%. The latest increase, a 50% hike implemented at midnight, is layered on top of previous tariffs. This move came in response to China’s recent 34% duty on U.S. imports. That, in turn, was retaliation for earlier U.S. tariffs targeting countries with trade imbalances.
U.S. Treasury Secretary Scott Bessent articulated this perspective during an interview with CNBC on April 8, 2025. He stated, “We are the deficit country. So what do we lose by the Chinese raising tariffs on us? We export one fifth to them of what they export to us. So that is a losing hand for them.”
These new tariffs are cumulative. Each new duty stacks on top of the previous ones, rather than replacing them. The result? A sharp increase in costs that importers and manufacturers must now absorb or pass along. CNBC summarized the mood in Euruope with this morning’s headline: “All EU Sectors Deep in the Red amid Tariff-Fuelled Sell-Off.”
Leaders Speak Out
The impact is already being felt across the lighting industry.
In a one-on-one interview with me, Marva Griffin of Salone del Mobile.Milano expressed concern:
“What is going on in such an incredible country! I’m just thinking what do you Americans think. I live here, I live in Milano, I live in Italy. Thank God. We have problems. But this is what’s happening in the U.S.! I’m worried. Okay.”
Margaret Wong of MWConnect described the mood from the supplier’s side:
“The tariff issue is devastating. We are encountering not only high tariff, reciprocal tariff but also fear of customers, and frustrated suppliers! I am hopeful this will change and get better. Trump and leaders of countries are playing a ‘Poker Game’, ike they are gambling at casino.”
Confidence Fades, Plans Shift
I also spoke with a respected Italian designer who advises a major U.S. retailer. She usually travels to New York for quarterly meetings and had planned to attend the International Contemporary Furniture Fair (ICFF) in May. Not this year.
Though she loves the U.S., she told me:
“It just does not feel right to go to the U.S. right now.”
She made her decision quietly but firmly.
Developing…
Go Deeper: Understanding the New Tariffs: Real-World Examples from China, Japan, and Beyond