LED lights companies react on tariff imposed by Trump administration

The USA tariff imposed on Chinese imported products to the U.S. was effective since July 6th. Earlier in the year 2018, the U.S. government has announced that it will enforce 25 percent tariffs on 818 Chinese goods whose total value worth about US$34 billion. And on July 10th, the Trump government proposed more tariffs on US$200 billion worth of goods from China.

Trump tariffs raise concerns in international trade in the year 2018 and later on

The LED lights relative products included in the effective tariff list are mostly semi-finished goods including wafers and backlighting products. Economically, tariff aims at reducing the reliance of U.S. companies on semi-finished components from China and to increase the competitiveness of the relevant products produced in America. However, these semi-finished goods account for only a small part of Chinese exported LED lighting products and the 25 percent tariff might hit U.S. based companies like Cree, because it has factories both in the U.S. and China.

Cree might be able to avoid 25 percent customs duty on its goods produced in China before shipping back to the U.S. Either the company had successfully persuaded the Trump government to exempt its products from the now effective tariffs or it will move the goods manufactured in China to another country before shipping them to America.

Osram had also reportedly reduced on its yearly forecast because restrictions on international trade and sales as well as planning risks affecting automotive makers have created noticeable uncertainty.