The LED market is uncertain facing the trunce of trade war between USA and China

The line of LED pays great attention to the trade war between the United States and China as LED components and related LED lighting products were included in the list of extra tariffs. The impacts of the trade war are believed to have led to the aggravation of oversupply in the LED industry. The two countries have recently reached a trade truce by postponing the new tariffs for 90 days longer. However, it is believed that the delay would bring increased uncertainty into the LED industry.

The original 25 percent tariffs are likely to have forced LED lights manufacturers to relocate their production lines. However, now that Trump has agreed to delay the tariffs, major players in the LED industry will have to hold their decision making and see how the situation would be after three months. The pending circumstance will hinder some market demands, leading to market uncertainty.

In April, 2018, the Trump administration announced the first tariff list for 1300 Chinese exports which covered LED lighting products. A 25 percent tariff has been imposed on these products since July 6th, 2018. On July 10th, the American government further planned to impose additional tariffs on US$ 200 billion worth of Chinese goods. In the second tariff list, more than 30 LED chips and LED lights categories were included. 10 percent tariffs on those products have come into effect on September 24th,2018. Tariffs were to be raised to 25 percent on January 1st 2019 according to the original plan of Trump.

With the trade war escalating in the past few months, LED players have taken different measures including raising product prices to face the increased cost arising from tax. Some LED companies may move out their facilities from China to remain cost competitive on the market. However, as LED producers might postpone their plans due to the temporary truce in the trade war, the uncertainty of the LED industry will continue.