Comprehensive analysis: what are the effects of tariffs imposed by the US on China's LED industry?

Since April, the US Trade Representative Office (USTR) has announced the "301 sanctions" list of more than 1300 tariffs on Chinese products, and the trade war between China and the United States has officially entered a white hot situation. In July, the US government again issued a list of tariff increases, and expected to raise 10% of Chinese products worth 200 billion US dollars. 301 in the two stage list of sanctions, LED components and products are among them. At present, the second stage tax collection list of products valued at US $16 billion has come into effect. The LED Consulting Center (LEDinside) will provide readers with a comprehensive analysis of the impact of Sino US trade war on LED industry.

First of all, from the list of the first stage, which came into effect in July, the LED products affected are mostly semi finished products, including silicon wafers and backlight products. According to the analysis previously released by LEDinside, this tariff list is mostly for American companies that have capacity in the US and must import semi-finished products from China.

From the perspective of impact, as China's exports of LED lighting products are mostly finished products, the impact on the price of LED lighting products is not yet obvious. For this reason, LEDinside analyst Wang Ting also pointed out: "lighting market demand is still sluggish in July, but the situation of price decline has not yet been observed. "

In the second wave 200 billion list, which has not yet determined the implementation time and details, the coverage of LED products is relatively wide. There are as many as more than 10 items involving LED and lighting categories. The total exports of these lighting items cover 75% of the total export volume of China, and the amount of exports to North America is 80. Billion dollars or more. It is no secret that the United States has always been an important export market for China's LED lighting products, and the Sino US trade war has been burned. Both the impact on China's LED industry and related companies in the United States will be unavoidable.

Judging from the current supply of LED lighting products, 85% of the LED lighting products are produced and assembled in China. Although there are still LED lighting lines outside China, the capacity outside China is not enough to meet the needs of the US market for the vast demand of the US market. Therefore, in addition to the impact of the tariff list on the Chinese and US manufacturers, if the manufacturers reflect the increase in the cost on the price, the American consumers will also face the situation of the price rise of the terminal products.

In fact, after the announcement of the two wave list by the US government, the US business will be the first to announce the operation. Chinese manufacturers have already started looking for countermeasures. In order to reduce the impact of tariff list, Chinese manufacturers may reduce the proportion of sales to the US market, thereby increasing the proportion of sales to the United States outside the market. For LED packaging plants outside China, it may be benefited from the effect of the tariff list, but on the whole, if Chinese manufacturers sell products at a cheaper price to the market outside the United States, they will again lead to price competition, which is not positive for manufacturers outside China. Interest.

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