With a lot of buzz going on in the lighting industry, the latest round of U.S. tariffs on imported steel and aluminium has sent shockwaves through multiple industries.
The costs of essential raw materials have increased several fold, and businesses are now bracing for the price hikes that will follow. And don’t forget the supply chain delays or sourcing setbacks. There’s a lot of speculation as to what is happening and what the future holds. If you’re a consumer or a business owner, read on to stay on top of all Trump tariffs and related news.
What’s Happening with the New Steel & Aluminum Tariffs?
For those who may have missed out on the news, in early 2025, the U.S. imposed higher tariffs on steel and aluminium imports, affecting a wide range of industries. These tariffs have completely changed things around as they have led to increased material costs which has made it all the more expensive to import or manufacture lighting products in the U.S.
- Steel tariffs have faced a sharp surge, which has in turn impacted fixture housings, brackets, mounting hardware prices and even production.
- Aluminium tariffs have also risen, and they have affected essential components like LED heat sinks and light casings.
While these tariffs were aimed at boosting domestic production they have had some unintended consequences which include retaliatory measures and compliance costs. Canada and Mexico both have been key aluminium suppliers for the U.S., and in light of the recent tariffs they have threatened to establish counter-tariffs on U.S.-made electrical components.
On the other hand, if businesses and consumers adhere to the Build America Buy America Act (BABA), that typically adds 5–10% to project expenses due to stringent domestic sourcing requirements.
How the New U.S. Tariffs Impact Lighting Imports
All stakeholders need to have as much information on the new U.S. imports as possible so you can make informed choices. Here’s a deeper look at how U.S. Tariff impact you:
1. Higher Costs for Lighting Components
Steel and aluminium are crucial components for most LED fixtures and even industrial lighting structures. And since these raw materials are used in nearly every product, the manufacturers have no other way than to increase their costs which are passed on to suppliers, retailers and eventually the customers.
2. Supply Chain Disruptions and Delays
The imports have become unreasonably expensive and that is why many companies have been reconsidering how they source their materials. While some are turning to domestic choices, others are on the look for tariff-free alternatives. But if you are too confused, fill out our contact form to get personalized assistance.
3. Fewer Affordable Options for Consumers
Consumers are left sitting on the fence, with the recent lighting import tariffs in the USA. Because of high production costs, businesses are pushed to either raise prices or reduce product offerings. This may mean a scarcity of budget-friendly lighting solutions, impacting commercial projects, residential upgrades, and industrial applications.
A lot of people are curious, Will LED Lighting Prices Surge Due to the Latest U.S. Tariffs? Read our previous blog
How to Budget for Lighting in a Market of Rising Costs
While rising tariffs and material costs are making lighting more expensive, smart planning can help you manage your budget effectively. Lighting and Supplies have come up with strategies to offer damage control and budget for the future:
1. Buy in Bulk Before Prices Increase
If that’s a possibility, there is no reason why you shouldn’t buy in bulk now. Before the tariffs take full effect you can stockpile key components and save on costs. Make sure you bulk buy components such as LED drivers, aluminium heat sinks and steel brackets. These might see a steep price hike of 15 to 25%.
Another smart decision would be to target the items which have the steepest projected costs. This may include raw materials or other components and high-demand fixtures.
2. Switch to BABA, BAA, and TAA-Compliant Products
Supporting the government’s latest initiatives, you can choose tariff-free, U.S.-made, or trade-compliant products. They may save you money and qualify for government incentives.
- BABA (Build America Buy America Act): Requires at least 65% of components for federally funded infrastructure projects to come from U.S. mines, producers, or manufacturers. Compliant products avoid tariffs and may qualify for federal rebates.
- TAA (Trade Agreement Act): You can source your components or raw materials from approved countries from the Trade Agreement Act to bypass Section 301 tariffs.
3. Use Alternative Materials
If you were to reduce reliance on tariffed steel and aluminium, that could help reduce costs significantly. For example, you can use Fiberglass brackets instead of steel for non-structural applications.
Similarly, if you want to replace aluminium heat sinks you can replace them with Thermoplastic alternatives. You can also use Zinc alloys for decorative or the more non-critical lighting components.
4. Lock in Long-Term Pricing
Creating a hedge against the price volatility is a good option and you can do that with the help of authorised suppliers. Lighting and Supplies can help you take the right step forward, contact our experts to learn more.
Don’t let rising lighting costs impact your bottom line. Lighting and Supplies is here to help. We’re finding affordable solutions and tariff-free products. Connect with our lighting experts through the form below, and we’ll help you save money with the right alternatives.
FAQs
Will these tariffs continue to rise in the future?
Tariff trends indicate potential future increases or trade restrictions, creating uncertainty. To minimize the risk of rising costs, it’s advisable to secure pricing now and remain up-to-date on developments with Lighting and Supplies.
Where can I find lighting solutions that aren’t affected by tariffs?
Lighting and Supplies connects you with trusted manufacturers offering solutions unaffected by tariffs. We also specialize in U.S.-made, government-compliant options. Call 888-325-4448 or contact us for guidance on Lighting import tariffs USA.
Why were these tariffs introduced?
The government put these tariffs in place to push for more products to be made in the U.S. and to depend less on materials from other countries. But, this has also made materials cost more, so businesses and people buying things end up paying more too.
Do tariffs impact product availability and delivery times?
Absolutely. Beyond cost increases, tariffs can significantly disrupt product availability and delivery. You can expect longer lead times and potential shortages due to import restrictions, compliance burdens, and possible retaliatory trade measures.
Need Help Finding the Right Lighting Products?
If you’re unsure how these steel & aluminium tariffs will impact your next project, contact us today for expert guidance. We can help you explore the changing market, find the best pricing, and secure high-quality alternatives.
Call us at 888-325-4448 or fill out our contact form to get personalized assistance.
Don’t wait until prices surge—get in touch now to secure the best deals before it’s too late!