The tariff wars cooled down on April 9 when President Trump set a 90-day pause on all non-retaliating countries, imposing a blanket global ‘reciprocal’ tariff of 10% until negotiations end, with the exception of China, which faced a steep combined tariff rate of approximately 145%, and Mexico and Canada that have 25% US import tariffs.
As optical businesses battle to adapt to the constantly changing economic climate, many are expecting impacts, but how big will the hits be?
The Vision Council reported that, despite the suspension bringing ‘temporary relief and stability’ to the optical industry, optical products imported from China still have significantly elevated tariffs, creating substantial cost implications for US importers. Plastic frames are said to be among the most heavily impacted at approximately 155%, as well as over-the-counter reading glasses, complete eyeglasses, safety glasses, and goggles – while contact lenses and sunglasses carry a slightly lower rate of 154.5%.
In addition, a broad range of optical accessories and equipment, including cases, lens processing systems and optical manufacturing machinery, will now be subject to combined tariff rates estimated between 170% and 190%.
Michael Vitale, vice president of membership, government relations and technical standards at the Vision Council, added: ‘Many of our members source frames, lenses and components from Chinese manufacturers, and this change could lead to higher costs and disruptions in the supply chain.’
The Vision Council attended the White House alongside other optical industry representatives on April 21 to meet with Robin Colwell, deputy assistant to the President and deputy director of the National Economic Council. The meeting allowed representatives to discuss challenges posed by current trade policies, share firsthand experiences from across the optical sector and work towards solutions.
Issues raised include costs with imported components for US manufacturing facilities and challenges optical labs face in reshoring production – particularly the lack of US-made machinery and the financial strain of tariffs on raw materials.
However, experiences vary as eyewear group Inspecs announced in its latest 2024 end-of-year results that its ‘non-US-based businesses are not currently affected by the recent changes in tariffs, and the company will continue to focus on supply chain efficiencies, reducing operational expenditure and selective pass through of cost increases to preserve margins across key markets to largely mitigate the effects of these new tariffs.’
Inspecs Group CEO Richard Peck commented: ‘The first quarter has laid the groundwork for a pivotal year and as we move forward, the focus remains on sharpening efficiency, streamlining operations, and advancing key initiatives.
‘Notwithstanding the recently announced tariffs and caution in relation to market conditions, compelling new projects in the pipeline give us confidence in delivering on market expectations for 2025.’
In the contact lens and lens care sector, secretary general of EuromContact Laure-Anne Martinet commented: ‘We are engaging in discussions with European Union (EU) institutions to highlight the EU’s strong interest in maintaining stable trade relations with the US in the medical device and healthcare sectors.
‘Medical technologies, such as contact lenses, are not just goods, they are essential solutions that support daily patient care across Europe and globally. Patients must never become collateral damage in trade disputes. For this reason, we continue to call on policymakers to remove existing tariffs and avoid introducing new ones on medical devices and their components.’
Contact lens provider, Johnson & Johnson has reportedly said it expects an approximate $400m hit due to the tariff situation in the US, mostly in its medtech division, which includes Mexican, Canadian, and substantial Chinese import tariffs.
In a Vision Council survey where American eye care practices were asked how tariffs would impact them in 2025, half of all respondents suggested that tariffs would lead to increased prices of eyewear products and practice supplies.
Meanwhile, 10% believed there would be overall cost increases, while 21% said they would not have negative impacts or that immediate negatives would be balanced out by long-term positive effects.
The outlook for 2025 remains cautiously optimistic, as 54% of respondents expect the US economy to either remain stable or improve in 2025, while 70% highlighted that inflation had at least some influence on their practices in the second half of 2024.
Alysse Henkel, vice president of research and inSights at the Vision Council, said: ‘Even with this optimism, providers are well aware of the uncertain economic outlook and its potential impact on their businesses. Many are delaying major investments, feeling the strain of inflation and facing persistent challenges in attracting and retaining skilled talent.’
The Vision Council has provided a 2025 Tariff Developments information page to keep the industry up-to-date on changes to the market during the ongoing trade wars, along with webinars and resources such as a simulator to model the financial impact of tariffs on imports.
