The optical industry continues to marshal resources and adapt as it assesses the impact that tariffs ordered by the Trump administration may have on revenue, materials, products and staffing. With President Trump having inked executive orders over the weekend that were slated to take effect on February 4 that imposed 25 percent tariffs on all goods imported from Mexico and Canada, with a 10 percent tariff on Canadian energy products, and a 10 percent tariff on imports from China, reliable news outlets reported that U.S. consumers and businesses could expect costs to rise on products ranging from groceries to gasoline to technology, leaving few sectors unaffected.

 
While the Trump administration and leaders of Mexico and Canada have struck last-minute deals this week to postpone tariffs for 30 days, news outlets report that the 10 percent tariff on all Chinese products did go into effect on Tuesday, and China has already clapped back with proposed tariffs of their own against specific U.S. products, among other actions.

Against this backdrop, concerns persist that the tariffs could lead to an increase in the cost of goods, a shift in the locus of manufacturing, and potential job losses, while specifically impacting many aspects of the optical market—which The Vision Council’s Market inSights 2024 report, released in January, estimates to be at $68.3 billion—including frames, lenses, sunglasses and low-vision eyewear, eyeglass cases, cleaning solutions and machinery used for eyewear production.


Rick Van Arnam.

“Companies that choose to absorb all or part of the increased duties will see hits to revenue and ultimately profit,” said The Vision Council’s regulatory affairs counsel Rick Van Arnam, who spoke with VMAIL before the executive orders were issued on Saturday. “Expect these companies to protect their bottom line, likely resulting in layoffs or salary stagnation. Our traditional trading partners will reciprocate with their own tariff increases, striking our export market, especially in agribusiness. Foreign countries will seek non-U.S. sources for these goods, resulting in lost sales for U.S. producers. If the trade policy is used more judiciously, the impacts described above can be mitigated somewhat.”

Optical products imported into the U.S. are typically subject to “regular duties” regardless of their origin, and items such as lenses and plastic spectacle frames face levies around 2 percent to 2.5 percent, with eyeglass cases subject to higher tariffs, noted Omar Elkhatib, senior manager of government relations at The Vision Council, in a recent article published in early January in Review of Optometric Business, sister publication to Vision Monday, before the executive orders were signed.

Elkhatib explained in the article that Section 301 tariffs for products imported from China, knowns as “China 301” duties, add further costs, with optical products like frames, lenses, sunglasses and low-vision eyewear subject to a 7.5 percent tariff, and items such as eyeglass cases, cleaning solutions and machinery used for eyewear production face a higher rate of 25 percent.

 
 Cira Collins.
The Vision Council, in email communication to its membership on Monday, advised that the rates of duties established by the executive orders signed Saturday would be in addition to other duties currently assessed against products imported from the targeted countries. Further, the communication clarified, “[B]ecause the new 10 percent tariffs on Chinese-origin goods are based on the IEEPA [International Emergency Economic Powers Act], those tariff numbers that were carved out of, and never subject to, the original China 301 duties, would now be subject to the new 10 percent duties. No exclusion process was set out in the orders.”

Cira Collins, an Oregon-based master optician, independent eyecare consultant and a VM Most Influential Women in Optical honoree in 2024, spoke with VMAIL about the tariffs and shared her concerns about the impact on the industry.

“We know that when consumers are faced with uncertainty, their behavior is to resort to the least amount of eyecare necessary,” she stated. “In times of economic uncertainty, and political uncertainty in particular, they avoid purchasing luxury frames in obvious favor of putting food on the table. There’s the belief that these tariffs will affect the bottom line of the everyday American.”


Alysse Henkel.
Alysse Henkel, vice president of research and inSights at The Vision Council stated that according to group’s inSights Research, “Consumers do show price sensitivity when purchasing eyewear. As inflation increased in 2022, the proportion of consumers reporting spending $200 or more out of pocket decreased, while the proportion of consumers reporting spending less than $100 out of pocket increased.

“This trend has held for the last two years,” she said. “If substantial tariff increases were implemented for eyewear, we anticipate that consumers would look for ways to control their spending, either by purchasing more budget-friendly eyewear or reducing how often they purchase eyewear.”

Jack Erker, president, Studio Optyx, who spoke with VMAIL ahead of the executive orders issued on Saturday, contended that the new tariffs, if implemented as proposed, could lead to higher inflation, reduced GDP growth, and potentially fewer jobs due to the broader economic slowdown. While there might be benefits for certain protected industries, he suggested, the overall economic impact appears to lean toward negative, with concerns about escalating trade tensions and the cost of living for American consumers.

 
 Jack Erker.
“The industry will see an increase in operational costs, potential price hikes for consumers, and a need for strategic supply chain adjustments,” Erker stated. “Many of the manufacturers have seen this coming and have prepared to open new factories in countries such as Vietnam, Mexico and Korea."

The Vision Council’s Elkhatib advised that the group is continuing its efforts to lobby on behalf of the optical industry against the implementation of increased tariffs, with its Government and Regulatory Affairs team seeking to leverage relationships on Capitol Hill and engage with the new Congress on tariff-related issues.

The group also hopes to alleviate the economic burden on companies importing spectacle frames and reading glasses, he said, and is seeking to reinstate one-year exclusions from the Section 301 tariffs that were previously granted to eyewear products.


Omar Elkhatib.
“The Vision Council is…advocating for a broader policy shift in how the U.S. Trade Representative (USTR) and Congress approach the classification of optical products under the China 301 tariffs,” Elkhatib said. “Specifically, The Vision Council requests that prescription and non-prescription eyewear products be treated in the same way as other FDA-regulated medical devices. This inconsistency creates unnecessary financial burdens for both consumers and industry stakeholders, and The Vision Council team believes that aligning optical products with other medical devices will provide a fairer, more equitable approach.

He continued, “Through focused and strategic lobbying efforts to secure relief from Section 301 tariffs, The Vision Council aims to collaborate with Congress to tackle unfair trade practices from China, while also alleviating the tariffs that disproportionately affect the eyewear industry and contribute to rising costs for American consumers.”

In the meantime, both Collins and Erker shared concerns about the feasibility within the industry to quickly pivot and recalibrate manufacturing and production processes and infrastructure, should that be necessary.

“It would be impossible to set up an entire industry’s infrastructure in the U.S. in the next four years,” Erker stated. “It took a few generations in China to get to where they are today.”

This is a developing story. Check back for additional news and reporting in an upcoming issue of VMAIL.