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Trump administration tariffs’ impact on optical industry
By Omar Elkhatib, The Vision Council
Jan. 8, 2025
The incoming Trump administration’s potential new tariffs are sparking concern across the optical industry and among eyecare practices.
With existing duties already complicating operations, additional tariffs could amplify challenges for manufacturers, importers and consumers alike.
Current Tariffs Impacting the Optical Industry
Currently, optical products imported into the U.S., regardless of origin, are subject to “regular duties,” which vary depending on the product.
For most items, such as lenses and plastic spectacle frames, these duties are relatively low, typically around 2 percent to 2.5 percent. However, eyeglass cases are subject to higher tariffs.
In addition to regular duties, products originating in China face an additional tariff under the Section 301 tariffs imposed in 2018.
These “China 301” duties add significant costs, with most optical products like frames, lenses, sunglasses and low-vision eyewear subject to a 7.5 percent tariff. Certain items, like eyeglass cases, cleaning solutions and machinery used for eyewear production, are taxed at an even higher rate of 25 percent.
For companies sourcing products from China, the combined effect of regular and special tariffs increases the landed cost of goods significantly. While some of these costs have been absorbed by U.S. importers and distributors, consumers are also feeling the pinch.
Potential New Tariffs under Trump
The Trump administration’s proposals to expand tariffs could further exacerbate these issues across the optical industry. If additional duties are introduced, the landed cost of optical goods could rise even higher, forcing businesses to make tough decisions about pricing and sourcing.
For eyecare practices, these costs may translate into higher prices for patients, potentially reducing access to affordable vision care products and services.
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In preparation for the incoming Trump administration, there are several possible scenarios for how things can play out for eyecare practices.
Scenario 1: Trump raises existing China 301 tariffs
Originating in the first Trump administration in 2018, and impacting optical products since 2019, these tariffs have survived the Biden administration, and to date, have been unsuccessfully challenged in court. During his campaign, Trump threatened to raise the China tariffs an additional 60 percent, and more recently said he would raise it by 10 percent on his first day in office.
Trump has the authority to increase the existing China 301 tariffs unilaterally, but if he chooses not to, Congress could pass a law to revoke China’s Most Favored Nation status and set a new rate for tariffs on Chinese origin products.
Scenario 2: Trump raises tariffs on all products regardless of origin
During his campaign, Trump proposed a blanket tariff on all imported goods, increasing rates by 10 percent or 20 percent. This would impose tariffs on all products regardless of origin, increasing the duty on eyewear products from rates such as 2 percent to 12 percent or 22 percent. Trump has authority to impose this increase unilaterally to mitigate or remediate an articulated unusual and extraordinary threat to national security or emergency.
Potential avenues for the President to impose these new tariffs would be through the International Emergency and Economic Powers Act (IEEPA), the law that most U.S. export law is based on, that allows the U.S. to prohibit trade from bad actors. To impose increased duties pursuant to the IEEPA, the President would need to establish the presence of an unusual and extraordinary threat to national security or emergency. If tariffs are imposed under IEEPA, immediate court challenges are expected.
Other ways for Trump to raise tariffs without Congressional approval is through Section 122, which is used to correct the balance of trade deficits and is limited to 150 days without further Congressional extension; Section 232, which require findings by the Department of Commerce that goods are imported at levels that threaten national security; and Section 301, which requires a finding that a foreign government acted in a manner that discriminates against U.S. interests or other otherwise unjustly against U.S. interests.
Scenario 3: Trump raises tariffs on products from Mexico and/or Canada
President-elect Trump recently said he would impose 25 percent tariffs on products from Canada and Mexico on his first day in office. Like the other scenarios, Trump can impose these unilaterally under certain conditions.
For Canada and Mexico, the President may have luck establishing an unusual and extraordinary threat to national security through IEEPA as it relates to immigration and border control, or to fentanyl interdiction.
Tariffs on products from Mexico and/or China would violate the existing terms of the U.S.-Mexico-Canada Agreement (USMCA), which permits free trade between North America and replaced NAFTA under Trump’s initial presidency.
One questions whether Trump would violate the terms of an agreement he helped establish, but the threat of increased tariffs against Canada, and particularly Mexico, may compel those countries to make greater efforts to control immigration and drug smuggling, and to prevent Chinese companies from manufacturing in North America to avoid 301 Tariffs.
A New Reality for Eyecare Practices
While tariffs aim to encourage U.S. manufacturing, the reality for the optical industry is more complex. Some companies have expressed interest in re-shoring production, but significant hurdles remain and many critical materials, like cellulose acetate, are not readily available in the U.S. at competitive prices.
Even U.S.-assembled products often rely on imported components subject to tariffs, making it even more difficult to sustain affordable domestic manufacturing.
If tariffs do increase, across any or all of the proposed scenarios above, eyecare practices should be prepared for several changes that may impact day-to-day operations.
Practice owners should expect to pay more for products or supplies imported into the U.S., and the price of eyewear and lenses purchased from suppliers will go up. Owners may have to increase prices of frames, sunglasses and eyewear accessories to keep up with the increased cost of inventory.
Practices may consider purchasing additional inventory before the incoming administration takes over, as a bulk order now may end up costing less than regular orders placed throughout the year under new tariffs.
The Industry’s Efforts to Mitigate Tariff Impacts
The Vision Council has been proactive in seeking relief from these tariffs. Previous efforts have led to temporary exclusions for items like spectacle frames and reading glasses, but these exclusions expired after one year and were not renewed by the Office of the U.S. Trade Representative.
The Vision Council continues to educate members of the optical industry about the limited exclusion processes still available, such as those for machinery used in domestic production, but relief remains limited for most optical products at this time.
Advocacy efforts by organizations like The Vision Council remain critical in seeking relief and supporting the industry.
As the sector navigates these uncertain waters, businesses, policymakers and stakeholders must work together to mitigate the impact on providers and consumers, ensuring the continued accessibility of essential vision care products.
Omar Elkhatib is senior manager, Government Relations, for The Vision Council. He leads the association’s advocacy to state and federal policymakers on issues of importance to the optical industry and members. To contact him: oelkhatib@thevisioncouncil.org
