LEDVANCE recently shared the following letter with lightED, which they sent to their customers on Thursday, July 19, 2018:
Dear Valued Customer:
As a result of global trade uncertainties, we write to provide notice of significant tariffs introduced by the United States on lighting products and components imported from China that, if left in place, will result in cost/price increases on many products LEDVANCE supplies to its customers.
On July 6th, the US Administration began imposing tariffs of 25 percent on approximately $34 billion worth of goods imported from China, including many that impact the lighting industry. Following Chinese retaliatory tariffs on US exports to China, the US Trade Representative announced on July 10th that “…the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports.”
While we are currently analyzing the specific impact on our products, it is clear that these compulsory tariffs would result in increased cost across the industry. Therefore, if the tariffs go into effect, there will be a corresponding cost/price increase on many of the products you purchase from LEDVANCE as early as September 1, 2018. We will provide additional details in the coming weeks.
Our number one priority is our customers, and we are taking the following measures:
- pursuing an exemption under the first set of tariffs
- working with NEMA, which is testifying at the USTR hearings, and communicating with Administration officials on behalf of the lighting industry
- working hard to find alternative options to minimize the financial impact to our customers
- engaging elected and administration officials in Washington DC
We encourage you to reach out to your own elected officials regarding the significant burden these tariffs would impose on the entire lighting market.
LEDVANCE is committed to your business, and we will be in touch shortly when we have more details. Should you have questions in the meantime, please contact your LEDVANCE account representative.
Thank you.
Matt McCarron
Vice President, Industrial/Commercial Sales
Jim Sanford
Vice President, Retail Sales