China LED makers under US tariff pressure
Siu Han, Taipei; Adam Hwang, DIGITIMES

The US government's latest move to slap a 10% tariff on China-made goods has put pressure on Chinese LED firms whose lighting products, especially decorative lamps, are on the list of affected items.

The tariff is expected to come into force in September 2018, with the pressure already reflected in recent drops in stock prices of China's LED epitaxial wafer and chip makers Sanan Optoelectronics and HC SemiTek, and lighting makers MLS, and Foshan Electrical and Lighting.

LEDinside estimates over 10 LED lighting product items - excluding bulbs and filament bulbs, both of which see large sales volumes - will be subject to the tariff.

However, some China-based LED lighting makers have overseas production lines that can help them reduce impact. MLS has overseas factories through acquiring Germany-based Ledvance from Osram.

The US in April 2018 announced a first-round imposition of 25% tariff on about 1,300 items of China-made products, with some LED devices included. High-power LED devices produced by US-based Cree at its China plants are subject to the 25% tariff, industry observers noted.

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