February 3, 2025
Not a Bluff: Trump Tariffs Hit Lighting Supply Chains
Lighting companies face cost hikes and urgent pricing adjustments amid trade policy shifts
One year ago, on February 1, 2024, Signify announced plans to shut down its large, longstanding factory in San Marcos, Texas, and relocate many of its production lines to Camargo, Mexico. The move positioned a significant portion of the company’s Hadco, Gardco, Lumec, and Stonco outdoor luminaires in Mexico, taking advantage of lower labor costs and Mexico’s existing manufacturing infrastructure.
Now, exactly one year later, on February 1, 2025, President Donald Trump signed an order imposing sweeping tariffs: a 25% levy on nearly all Mexican and Canadian imports and an additional 10% tariff on Chinese goods, raising the average tariff on many Chinese imports from approximately 20% to 30%.

Above: President Trump posted a major update Monday morning on Truth social
These new tariffs sharply increases costs overnight, disrupting supply chains and compelling manufacturers and distributors to swiftly reassess their pricing strategies.
In retaliation, Canada has imposed 25% tariffs on U.S. imports, with its extensive list of affected product categories referencing "luminaires" 22 times. This move will make U.S. lighting products less price-competitive on Canadian projects.
In December, Inside Lighting’s Al Uszynski appeared on the annual Get a Grip on Lighting New Year Predictions podcast, where he incorrectly predicted that the tariff threats against Canada and Mexico were mere “negotiation bluster” by then President-Elect Trump. Now, with the tariffs officially in place, we have a new prediction, and we state it with much more confidence than the last one:
Expect a wave of price increase announcements throughout February as lighting manufacturers and distributors respond to rising costs. Unlike typical hikes, which usually allow 3-6 weeks of runway, these adjustments may come with shorter notice.
Many lighting companies have spent the last several years reconfiguring supply chains to minimize labor costs and exposure to past tariffs on Chinese imports, only to find themselves quickly exposed to these new levies on Mexico and Canada.
As tariffs disrupt supply chains, numerous U.S.-based lighting manufacturers — or those performing final assembly domestically — are poised to amplify their "Made in USA" messaging. However, even as they highlight American production, many still rely on imported LED components, drivers, modules and controllers from China and Mexico, leaving them vulnerable to some cost increase despite their domestic positioning.
Short-Term Relief: Stockpiling Strategy
In anticipation of potential tariff hikes, Inside Lighting has heard unverified reports of some lighting manufacturers and electrical distributors stockpiling key components and finished goods in recent weeks and months. This practice — while costly in terms of warehouse space and capital investment — may have provided some companies with a short-term cushion against immediate 25% and 10% price hikes.
Unlike industries dealing in perishable goods such as avocados, bananas, or cut flowers, manufacturers and distributors can strategically warehouse high-volume goods to offset tariff risks. Companies that took proactive steps to stockpile may be in a better short-term position than those operating on lean Just in Time (JIT) inventory models.
Acuity, Cooper and Current also face new challenges
Acuity Brands, North America’s largest lighting company, has long relied on Mexican factories for its manufacturing footprint. In fiscal year 2024, 53% of Acuity’s sales were derived from products manufactured in its seven Mexican factories, while another 17% came from Asia — primarily China. With up to 70% of its business now exposed to increased tariffs, Acuity faces a complex pricing challenge. The company may need to evaluate cost absorption strategies or pass price increases along to customers.
Meanwhile, Cooper Lighting Solutions, a subsidiary of Signify, also operates significant manufacturing in Mexico’s maquiladoras, producing a wide range of architectural and commercial lighting products. Cooper had previously benefited from assembling Chinese components into finished goods in Mexico, sidestepping direct Chinese tariffs. Now, that strategy is under threat.
Similarly, Current, a lighting and controls manufacturer headquartered in South Carolina, operates a large factory in Acuña, Mexico. While the company emphasizes its U.S. production capabilities, three of its five North American plants are in the U.S., with Mexico playing an important role in its supply chain.
It should be noted that Acuity, Cooper, Signify, and Current each maintain U.S. manufacturing facilities that produce and assemble certain product lines while also providing final assembly for products requiring Buy America Act (BAA) or Build America, Buy America (BABA) compliance. These domestic operations allow them to meet federal procurement requirements, though many of their supply chains remain globally intertwined.
Many U.S. lighting brands primarily rely on China
Many distributor-oriented economical lighting brands operate as master distributors for private-labeled Chinese lighting products or function as box-in, box-out businesses for U.S.-branded Chinese goods. These companies rely on third-party manufacturing in China, importing everything from LED lamps and retrofit kits to flat panels, downlights, and industrial high bays, often rebranded under U.S. names for sale through electrical distributors.
The 10% additional tariff on Chinese imports now puts more direct pressure on their cost structures, potentially eroding their traditional pricing advantage. Additionally, with Chinese New Year running from January 29 to February 12, 2025, factory shutdowns across China could add another layer of disruption, further straining supply chains already under pressure from new tariffs.
With thin margins and a reliance on low-cost imports, these brands could face difficult decisions —whether to absorb costs, pass them on to distributors, or explore alternative sourcing in Vietnam, India, or Taiwan.
However, with a high percentage of economical flat panels, downlights and wall packs sold in the U.S. coming from Chinese factories, this could be a case of “a rising tide lifts all boats.”
Oh Canada, and the flip-side of the loonie
Canada’s lighting industry is also caught in the tariff crossfire, with 25% duties now imposed on Canadian imports. Many architectural lighting brands such as Lumenpulse, Axis Lighting, Lumenwerx, Liteline, and Ledalite (a Signify brand) rely on Canadian manufacturing and distribution, often serving U.S. commercial and municipal projects. While these companies have historically navigated currency fluctuations between the U.S. and Canadian dollars, the new tariffs introduce an additional pricing challenge.
Some brands, such as LMPG (Lumenpulse’s parent company), have U.S.-based manufacturing facilities at the California and Illinois homes of Vode and Sternberg Lighting that could help mitigate tariff exposure, but for most others, the increased cost of importing Canadian-made luminaires into the U.S. will likely require pricing adjustments or supply chain restructuring.
Canada just released its list of U.S. products facing 25% tariffs starting Feb 4, 2025. The list includes all types of electric lighting fixtures — mentioning "luminaires" 22 times. Trade tensions heating up.
— Inside Lighting (@InsLighting) February 2, 2025
MORE INFO: https://t.co/Sca1Ih5lTC
The flip side of that loonie is that U.S. lighting manufacturers now face 25% tariffs when selling American-made products in Canada, as the country announced retaliatory tariffs set to take effect Tuesday. This could pave the way for Canadian manufacturers to have even more success in writing domestic lighting orders.
Supply Chain Uncertainty Mounts
With new 2025 tariffs now officially in place, lighting manufacturers face a new era of supply chain challenges. The question now is whether companies will attempt further diversification, explore alternative production in the U.S., Vietnam, or India, or pass costs along to customers in the form of higher prices. Some may choose to wait it out, hoping that swift negotiations will reverse the trade war measures before making major strategic shifts.
Inside Lighting will continue tracking industry reactions, pricing shifts and potential policy developments as this situation unfolds.