Tariffs and Unintended Consequences

April 13 [addtoany]

Tariffs are usually created to save/create jobs. Tariffs being discussed today may actually have the opposite effect in our industry.

On 4 APR, EdisonReport reported that Light Emitting Diodes were on the proposed list of items, that the Trump Administration had proposed for increased tariffs. We emphasize the word “proposed” as nothing is agreed. In addition the President’s proclamation imposes a global 25% tariff on certain steel imports and 10% tariff on certain aluminum imports, but the price of aluminum has surged almost 16 percent since Friday, 6 APR, when the United States announced sanctions on Russia.

We are are hearing much chatter from metal suppliers in our industry and could see price increases as early as next week. It appears that just the uncertainty will cause the price increase.

The companies that actually manufacture luminaires in the U.S., and create jobs that drive our economy, will be penalized with increased costs of steel, aluminum, and LEDs.  Conversely, the companies that are box-in, box-out, will likely see no cost increase.   EdisonReport can confirm that at least one large manufacturer that has box-in, box-out capability, is having internal discussions about shifting a portion of their business and bringing in more completed fixtures, which has the opposite effect of creating jobs.

Patent Attorney David Radulescu will give an update on the tariff landscape and how it affects our industry on Wednesday, 9 MAY at the Chicago Marriott Marquis at 8 a.m. If you are interested in attending this free meeting, about 10 seats are still available. To reserve, send an email to:  events@radip.com.