What will the LED industry be affected by Trump's tariff increase to 200 billion US dollars?

In July 10th, the Trump administration launched a plan to increase tariffs on China's $200 billion commodity, and released a list of target products. LEDinside the first time, according to this list analysis, the LED industry will be affected.

The first round of Taxation on industrial intermediate products had a limited impact. In 2017, China's exports to the United States amounted to about 175 million US dollars, so its impact on China's LED industry was rather limited. It was mainly affected by CREE and other American manufacturers who need to purchase LED from China.

The second round of the 200 billion products covered by the LED covers a wide range, including more than 10 items of LED and lighting items, and a large trade volume. Among the major lighting products, China's exports to the US in 2017 amounted to US $about 5000000000.

The following is an analysis of the trade volume of LED projects that LEDinside collated may be affected by trade wars:

Because the United States has been an important export market for China's downstream LED, including lighting and other industries. If the 200 billion dollar tariff project is approved, China's LED related industries will inevitably suffer.

However, due to the obvious advantages of China's lighting industry, it has formed a global industrial cluster. Compared with other global regions, it has obvious comprehensive cost advantages. Therefore, more than 85% of the LED lighting products in the world are assembled and produced in China.

Even if more than 10% tariffs are added, it will be difficult for us consumers to get alternative products from other regions in the short term. The extra tariff cost of 10% will be shared between American consumers and Chinese lighting manufacturers. (text: LEDinside chief analyst Wang Fei)

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