The impact and impact of US tariff adjustments on the LED display industry

On April 2, local time in the United States, the White House issued a statement stating that Trump declared a state of emergency, aiming to enhance the United States 'competitive advantage, safeguard national sovereignty, and strengthen national and economic security. This measure mainly covers two key tariff adjustments:

1. Comprehensive 10% tariff: Starting from 12:01 a.m. Eastern Time on April 5, 2025, a unified 10% tariff will be imposed on imported goods from all countries.​

2. Personalized reciprocal higher tariffs: Personalized reciprocal higher tariffs will be imposed for countries with large trade deficits with the United States. Starting from 12:01 a.m. Eastern Time on April 9, 2025, other countries will still implement the 10% basic tariff. At the same time, Trump announced a complete list of reciprocal tariffs, including an additional 34% tariff on China goods.​

In terms of LED display products, affected by this policy, the tax rate will rise sharply to 54%-79%. Looking back at Trump's tariff adjustment measures this year, they can be described as frequent and strong:

• On February 4, it announced a 10% tariff increase on China goods;

• On February 7, it was stipulated that goods from China worth less than US$800 could enjoy a tax exemption policy;

• On March 4, tariffs were imposed on China goods again, and the tax rate was increased from 10% to 20%. At the same time, tariffs of 25% were imposed on goods from Mexico and Canada respectively, and a 10% tariff was imposed on Canadian energy imports;

• On March 5, it announced a one-month tariff exemption for North American-made cars that comply with the existing North American Free Trade Agreement;

• On March 6, the tariff exemption was extended to other goods shipped under the North American Free Trade Agreement, such as televisions, air conditioners, avocados and beef, and the tariff on potash fertilizer used by American farmers for chemical fertilizers was reduced from 25% to 10%;

• On March 12, a 25% tariff was imposed on all imported steel and aluminum;

• On April 2, a 10% tariff policy was implemented on all countries, and a 34% equivalent tariff was imposed on China.​

由于此前特朗普已对中国加征 20% 关税，此次叠加后，对中国商品的累计关税将达 54%。In addition to the cumulative 301 tariff for LED display products, plus the basic tariff, the final tariff result is in the range of 54%-79%.
从 LED 产业格局来看，美国由于电费成本高、人工成本高昂，制造业发展面临诸多阻碍，尤其是 LED 显示产业链，基本集中在中国。As one of the important core export markets for China's LED display products, the United States relies on China products to a certain extent. However, in the face of such an unstable market environment, demand may be significantly affected. However, demand for commercial products is relatively stable, with the high-end market showing strong resilience. However, demand differentiation may occur in the consumer electronics market. The increase in tariffs has increased inflationary pressure in the United States, which in turn indirectly affects demand in the consumer electronics market.
In addition to China, tariffs in Southeast Asia and Africa have also been upgraded simultaneously.
除中国外，东南亚、非洲地区的关税也同步迎来升级。Taking Vietnam as an example, the United States believes that Vietnam has caused U.S. exports to Vietnam to face tariff barriers of up to 90% through policies such as tariffs, incentives and subsidies. As a punitive measure, the United States decided to impose an additional 46% on goods made in Vietnam on top of the original tariffs, and other declared tariffs on goods will be calculated separately. Although Vietnam's tariff level is still lower than that of China after accumulating all previous tariffs, China has a more complete supply chain for LED display companies, stricter cost control, and obvious advantages in local manufacturing. With the implementation of the new policy, the difference between transferring manufacturing through Vietnam and local manufacturing in China will gradually narrow.
墨西哥作为转口贸易的热门地区之一，对于加拿大和墨西哥，现有的芬太尼 /迁移 IEEPA 命令依旧生效，不再额外征收对等关税，所以依旧维持此前加收的 25% 关税。In addition, the United States has also implemented varying degrees of tariff adjustments on other countries, imposing tariffs of 26% on Indian goods, 24% in Malaysia, 10% in Turkey, 20% in the European Union, 24% in Japan, and 25% in South Korea.
This US tariff adjustment will undoubtedly further aggravate the uncertainty of the global economy.
美国此次关税调整无疑将进一步加剧全球经济的不确定性。The United States has a weak LED display manufacturing base, but its consumption capacity is strong. It is an important market with the highest LED display export volume in my country and high single amount and gross profit margin. Therefore, relevant companies need to attach great importance to this tariff adjustment and actively adjust their business strategies. On the one hand, companies can increase investment in technology research and development and increase the added value of products to cope with the cost pressure brought by increased tariffs; on the other hand, they can actively explore emerging markets, reduce dependence on a single market, and disperse market risks., thereby seeking stable development in a complex and ever-changing international trade environment.