On April 2, 2025, U.S. President Donald Trump announced a sweeping new tariff policy that has sent ripples through the global lighting industry. A 10% “base tariff” on all countries will take effect at 00:01 a.m. ET on April 5, with additional “reciprocal tariffs” targeting nations with large U.S. trade deficits—reaching up to 34% on Chinese imports—beginning on April 9. This marks the most extensive tariff initiative since Trump resumed office, and the consequences are already being felt.
Two major North American lighting manufacturers—Acuity Brands and RAB Lighting—have responded quickly, both announcing price increases due to the rising costs of imported components and supply chain disruptions. These actions underscore the immediate impact of tariff policy changes on the U.S. lighting market and beyond.
Acuity Brands which stands as a key lighting manufacturer in North America announced its second price adjustment notice to customers and channel partners on April 3, 2025.
A previous price increase went into effect on March 31 however the fast-changing tariff landscape forced the company to implement another price increase beginning April 7, 2025. Any orders that are placed by April 4 and arranged for immediate shipment continue to receive the original price structure. All orders confirmed after April 7 will use the new pricing model and orders made before April 7 that ship after April 7 can be subject to price adjustments.
Neil Ashe, CEO of Acuity Brands, told investors that the company is actively adjusting its operations to respond to the latest tariffs. The timeline for these policies is unclear but Acuity is considering various options such as moving production facilities to countries like Vietnam and Cambodia. The company’s extensive size and decentralized framework makes these transitions occur slowly. The United States hosts the production of approximately 20% of Acuity’s products at present.
Acuity achieved $1 billion in net sales for Q2 of fiscal year 2025 which represents an 11.1% increase compared to the previous year even as it faced external challenges. The Intelligent Space Group (ISG) segment experienced substantial growth after acquiring QSC Enterprise but the Lighting and Lighting Controls (ABL) segment maintained stability amid industry challenges.
RAB Lighting followed suit as another major U.S. lighting industry player and announced a price increase effective May 3, 2025 because of new U.S. tariff policy cost pressures.
RAB’s price adjustment letter claimed that their supply chain experienced a “significant impact” which surpassed their internal capacity to manage. The extent of price hikes will differ across product categories depending on each product’s vulnerability to tariff-influenced cost increments. RAB will provide complete pricing information through spreadsheets and distributor portals by April 18.
RAB focuses on energy-efficient sensors and outdoor lighting solutions and remains highly reactive to global component price changes due to its reliance on Chinese suppliers for essential LED parts like drivers and chips.
The implications of the new U.S. tariff policy stretch far beyond individual company balance sheets. As China remains the global leader in LED component manufacturing, higher tariffs on Chinese imports not only increase U.S. production costs but also threaten to disrupt global supply chains.
For U.S. manufacturers, this may lead to:
Increased reliance on non-Chinese suppliers
Domestic manufacturing capacity expansion
Price increases passed on to distributors and end users
Delays in product development and delivery
For international markets, the policy may open opportunities for other low-cost manufacturing hubs like Vietnam, India, and Cambodia, while at the same time introducing new uncertainties for exporters and multinational companies navigating complex trade dynamics.
The North American lighting industry faces not only increasing expenses but also a period of economic unpredictability alongside essential operational changes. Acuity Brands and RAB Lighting show how fast adaptation is necessary for companies in today’s unstable policy climate.
The current tariff situation forces manufacturers, distributors and customers to remain flexible while they reevaluate their supply chains and brace for ongoing market volatility. While the full impact of the new U.S. tariff policy on the global LED lighting industry remains to be seen, one thing is clear: Change has arrived to illuminate our trade and technological future with its bright light.
