The US-China trade war has escalated and abated on a number of occasions over the past few months, with neither side being anywhere closer to a long-term solution. President Donald Trump hopes to narrow the current trade deficit with China with new tariffs on Chinese manufactured goods. A round of negotiations on May 2019, seems to have only escalated the trade war. In the aftermath of the talks, US officials threatened tariff hikes on $300 billion worth of Chinese goods while Beijing subsequently announcing tariffs on $60 billion of American goods.

These threats soon became a reality when Trump announced an additional 10% on $300 billion of Chinese imports which will come into effect in September. The new list of products on which taxes are to be imposed includes several LED products. The value of Chinese exports of these LED products to the US stood at $1.768 billion last year.

Electrical contractors who buy LED lights should pay close attention to the prices of these products as they are going to rise because of the ongoing trade war according to Mike Watson, VP and GM of e-conolight. The tariffs have forced many US-based lighting companies which source their products or components from China to increase prices. Additionally, many LED product manufacturers have also begun the process of shifting their production lines from China to other nations.

While this global economic disruption may be bad news for many, there are potential winners from this trade war. Sustained or increased tariffs on Chinese manufactured LED products allow other strong manufacturing nations like India, South Korea and Vietnam to seize a share of the US market. Not just that, US-based companies sourcing from non-tariffed nations also have a price advantage over their counterparts who rely heavily on Chinese exports.