How will the LED industry affected by the most pop

2022-08-17
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How will the LED industry be affected by the US tariff increase

the trade war between the United States and China continued to heat up. The United States announced that it would again use article 301 to impose a 10% tariff on China's goods of about $200billion. Among them, led and some lighting products were also included in the list of target products, and the levy began as soon as September. Due to the expansion of the scope involved, the LED industry was shocked

although the market demand gradually recovered in the third quarter, the spread of the tariff war between the United States and China has cast a shadow on the overall market condition of LED lighting, especially the decorative and high unit price special lighting products will bear the brunt

the United States has launched the latest wave of retaliatory tariff hikes, including fluctuations in the share prices of San'an optoelectronics, Huacan optoelectronics, MuLinSen, Foshan Lighting and other industries, which has significantly impacted market confidence. Due to the tariff hike from September, end customers have postponed the delivery schedule in order to avoid risks, and first replaced it with inventory support. LED industry shipments were blocked, and the LED lighting market in the second half of 2018 may not be prosperous in the peak season

Jingdian said that due to the uncertain factors of the tariff increase in the United States, the order placing demand of LED lighting end customers has become conservative. Compared with about 45% of the revenue in 2017, the proportion of LED lighting in the first half of 2018 fell to about 35%. Although entering the traditional peak season of the third quarter, the demand for LED backlight began to warm up, but recently led lighting is still dominated by short orders, and only the demand for LED filament lamps and high-efficiency tubes is relatively clear, It is estimated that the LED lighting is strictly forbidden to stand within the operation radius of the zigzag reinforcement and the side 1 of the fuselage without fixed, and the proportion of people in the revenue may fall to 30% or less

the industry expects that the tariff increase in the United States will inevitably impact market buying in the short term, especially the low average gross profit margin of LED lighting. Once the tariff is increased by 10%, it will dilute the profits of manufacturers, seriously affect them, and even cause the manufacturing sector of LED lighting supply chain to move. In the future, some lighting industry may consider establishing automated production lines in the United States

led manufacturers pointed out that the expansion of the tariff storm in the United States will inevitably affect the overall LED industry, but the operating conditions of individual companies are different. Some operators focus on the mainland market, while some operators have overseas manufacturing bases. For example, Mu Linsen has previously set up production lines in the United States or Mexico on the basis that the domestic billet market has not changed the weak operation CE brand layout on the 18th of ledvan, The production scale will be moderately increased in the future

according to the evaluation of industry insiders, at present, it seems that the LED bulb or filament lamp and other projects with the largest market sales volume are not included. In addition, the general lighting application is a necessity for people's livelihood, and the market impact should be limited. However, LED Christmas lights, art lights or art lights with high product prices, which are about to enter the peak of shipment in the second half of the year, will be greatly impacted

the haze of the U.S. - China tariff trade war shrouded. In the list of the first wave of 25% tariff increase announced in April, it is only limited to LED component products imported into the United States. Among them, some LED components of Guangbao face tariff hikes, but LED components account for about 14-15% of its overall revenue, and Thailand has led plants, with limited short-term impact

due to the limited impact of the first wave of taxes on industrial intermediates, exports to the United States in 2017 were less than $200million, but the second wave of $200billion tariff list involved a wide range of LED products, including most products related to the lighting industry, except incandescent light sources (HS Code: 853922 and 853929, etc.) and led replacement light sources (HS Code:). The export volume of the above products accounts for about 75% of the total export volume of China's lighting products, more than 30billion US dollars; Among them, the export volume to the United States accounts for nearly 80% of China's total export volume of lighting products to the United States, more than 8billion US dollars. The subsequent impact effect will be very large

the United States and China have only previously increased tariffs on $34billion of imported goods. President Trump of the United States once again announced a $200billion tariff list for goods, which will be reviewed from August 20 to 23. According to the announcement of the office of the United States trade representative, the new round of the list will enter the consultation period after its publication, and the decision on the actual tax will be made after August 31

China's Ministry of Commerce publicly expressed its dissatisfaction. On the 11th, it issued a statement on the new round of the list, saying that it was "shocked" by the US side's act of publishing the tax list by accelerating its direct performance, which is to instigate the reciprocating fluctuation and escalation of figures, and that the Chinese government will, as always, have to make the necessary countermeasures. A day later, the Ministry of Commerce issued a statement again reiterating that the United States' accusations of China's unfair trade practices and China's disregard for differences ignored the facts, and that the trade war unilaterally launched by the United States "has no international legal basis"

the fighting between the two sides is becoming more and more intense, and the industry is worried that more tariff lists may be published in the future, which will impact on the purchase of gas in the terminal market and detonate mines in the LED industry. However, sources said that the USTR would adjust the list according to whether it would harm the interests of U.S. consumers, and there was still uncertainty about the final implementation of the list. Therefore, some people believe that the tax increase list has been thrifty again, and the time has not finally been implemented, or there is room for manoeuvre

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