Trump imposes another 34% tariff, LED display tax rate is about 60%

On April 2 (U.S. time), the White House issued a statement announcing that Trump declared a national emergency to enhance U.S. competitiveness, protect national sovereignty, and strengthen national and economic security. Key measures include:

• A 10% tariff on all countries, effective at 12:01 a.m. Eastern Time on April 5, 2025.
• Higher reciprocal tariffs targeting countries with the largest trade deficits with the U.S., while maintaining the 10% baseline for others. This will take effect at 12:01 a.m. Eastern Time on April 9, 2025.

Trump also released a list of reciprocal tariffs, including a 34% additional tariff on China, with specific impacts:

Trump also announced a full list of reciprocal tariffs, including an increase of 34% tariffs on China, some of area are as follows:

01. The tariff on LED display products will range from 54% to 79%.

This year, Trump has repeatedly escalated tariffs:

• Feb. 4: 10% tariff was imposed on Chinese goods.
• Feb. 7: Goods from China with a value under $800 will be tax-free
• Mar. 4: Increased tariffs on Chinese goods from 10% to 20%; imposed 25% tariffs on goods from Mexican and Canadian, and a 10% tariff on Canadian energy imports.
• Mar. 5: Announced a one-month tariff exemption for North American-made cars that compliant with the existing NAFTA agreement.
• Mar. 6: The tariff exemption was expanded to include other goods shipped under the North American Free Trade Agreement, such as televisions, air conditioners, avocados and beef. The tariff on potash used by American farmers for fertilizer was reduced from 25% to 10%.
• Mar. 12: A 25% tariffs was imposed on all imported steel and aluminum.
• Apr. 2: A 10% tariff on all countries, and a 34% reciprocal tariff on China.

Combined with the previous 20% tariffs, the cumulative tariffs on China will reach 54%. For LED display products, need to accumulate the Section 301 tariffs and base tariffs, resulting in total tariffs ranging from 54% to 79%.

This figure reaches the 60% tariff on China mentioned by Trump in the policy platform released by the Republican National Convention.

Impact on the LED industry

The U.S. has high electricity and labor costs, making it difficult to establish a strong manufacturing industry, especially in the LED display industry, which supply chains concentrated in China.

As one of the core export markets for China’s LED display products, the United States will also have a certain degree of dependence.

However, demand may fluctuate due to market instability. The demand for commercial products is relatively stable, and the high-end market is relatively resilient.

Consumer electronics may face demand fragmentation, and tariffs will push up inflationary pressure in the United States, which will also indirectly affect the demand in the consumer electronics market.

02. Tariff upgrade in Southeast Asia: Vietnam Faces an additional 46% Tariff

Besides China, tariffs in Southeast Asian and African are also rising. For example:

• Vietnam: the U.S. claims that Vietnam’s policies on tariffs, incentives, and subsidies create a 90% trade barrier for U.S. exports to Vietnam. As a penalty, the U.S. will impose an additional 46% tariff based on the original tariffs on goods manufactured in Vietnam, and the tariff ratios of other goods that have been announced will be calculated separately. Accumulating all previous tariffs, Vietnam’s tariff level remains lower than China’s.
• Chinese LED display manufacturers have a more complete supply chain, stricter cost control, and advantages in domestic production. Under the new policy, the difference between manufacturing in Vietnam and China will narrow.
• Mexico remains a key hub for re-export trade. For Canada and Mexico, the existing fentanyl/migration IEEPA order remains in effect, so no additional reciprocal tariffs will be imposed beyond the existing 25% tariff.

Additional tariff rates for other countries:

• India: +26%
• Malaysia: +24%
• Turkey: +10%
• EU: +20%
• Japan: +24%
• South Korea: +25%

Conclusion

This round of tariff adjustments by the United States will further increase uncertainty in the global economy. 

The US LED display manufacturing industry is weak, but the consumer demand is strong. It is a critical market for Chinese LED exports in terms of volume, order value, and profit margins.

So, companies need to pay great attention and adjust their strategies.