On April 2, US President Trump announced a 10% "baseline tariff" on all countries, which will take effect at 00:01 on April 5, Eastern Time. In addition, Trump will impose higher, individualized "reciprocal tariffs" on the countries with the largest US trade deficits, which will take effect at 00:01 on April 9, Eastern Time.
This is reportedly the largest new tariff policy announced by Trump since he took office in January this year, targeting almost all of the United States' trading partners, including imposing a "reciprocal tariff" of up to 34% on Chinese imports.
Following the release of the latest U.S. tariff policy, North American lighting manufacturers Acuity Brands and RAB Lighting immediately announced price increases for their related lighting products.
Acuity Brands Announces Second Price Increase for Lighting Products <br /> According to foreign media reports, on April 3, North American lighting manufacturer Acuity Brands issued a second price adjustment notice to its customers and channel partners.
Acuity Brands stated that it had announced price changes several weeks ago, effective March 31, 2025. However, due to ongoing changes in tariff policies, the company will be implementing a second round of price adjustments.
Source: edisonreport.com
Effective April 7, 2025, Acuity Brands will be implementing additional price increases on select lighting and electronics products. Orders placed at the current price and shipped immediately will have a latest order processing date of April 4, 2025.
Orders received and confirmed on or after April 7 will be invoiced at the new price. Orders received and confirmed before April 7 but shipped on or after April 7 will be reviewed and may be subject to the updated price.
In a recent investor call, Acuity Brands CEO Neil Ashe discussed the latest tariff policies. He stated that the company acted swiftly and appropriately after learning of the new tariff policies. While the duration of the tariffs' implementation is currently unclear, the company will adjust its strategies accordingly based on U.S. government policy.
Neil Ashe mentioned that many companies in the industry had previously shifted production from China to countries like Vietnam and Cambodia to avoid potential tariff risks. Acuity Brands was also undertaking similar operations; however, due to its larger scale and more diversified operations, Acuity Brands' progress was slower. Additionally, Neil Ashe noted that approximately 20% of the company's products are currently manufactured in the United States.
According to available information, Acuity Brands is a well-known North American lighting manufacturer that holds an important position in the global lighting market. Currently, Acuity Brands' business is mainly divided into two parts: Lighting and Lighting Control (ABL) and Intelligent Space Group (ISG), covering commercial, residential, industrial and agricultural lighting, as well as smart building solutions.
Along with announcing a second round of product price increases, Acuity Brands also released its results for the second quarter of fiscal year 2025 (ending February 28, 2025).
The CEO of Acuity Brands stated that the company's performance in the second quarter was stable, with net sales growth, expanded adjusted operating profit and profit margin, and improved adjusted diluted earnings per share.
Specifically, in the second quarter, Acuity Brands achieved net sales of $1 billion (approximately RMB 6.5 billion), an increase of 11.1% year-over-year; operating profit of $110 million, a decrease of 7% year-over-year; adjusted operating profit of $163 million, an increase of 16% year-over-year; and adjusted diluted earnings per share of $3.73, an increase of 10% year-over-year.
The Lighting and Lighting Controls (ABL) business segment saw a slight decrease in sales, with net sales of $840.6 million, down 0.3% year-over-year; operating profit of $130.3 million, up 3.4% year-over-year; and adjusted operating profit of $141.3 million, up 3.6% year-over-year. The adjusted profit margin rose to 16.8%, an increase of 60 basis points year-over-year.
In addition, the Intelligent Spaces (AIS) segment performed exceptionally well, achieving net sales of $171.5 million, a 152% year-over-year increase. This was primarily driven by the company's acquisition of QSC, which generated $95.1 million in revenue for the AIS segment. Furthermore, the segment's adjusted operating profit more than doubled to $32 million; however, AIS's GAAP margin declined due to increased amortization and acquisition costs.
Due to tariffs, RAB Lighting announced a price increase for its lighting products . The American lighting equipment company RAB Lighting also announced a price adjustment.
Source: edisonreport.com
RAB Lighting stated that the latest tariff policies issued by the U.S. government have had a significant impact on the company's supply chain costs, exceeding what the company can fully absorb. Therefore, the company announced that it will adjust product prices effective May 3, 2025, with the specific increase varying depending on the product and the impact of the tariffs. Orders placed and scheduled for immediate shipment on or before May 3 will be invoiced at the current price. New pricing information will be published on April 18 via spreadsheets and the distributor portal.
According to available information, RAB Lighting specializes in manufacturing energy-efficient sensors and outdoor lighting equipment, while also providing indoor and outdoor lighting solutions.
Summary <br /> The new tariff policy is negatively impacting US-based LED lighting manufacturers. As China is a major global producer of key LED lighting components such as LED chips and drivers, the increased tariffs further raise production costs for US lighting manufacturers.
Therefore, the new US tariff policy not only affects the future export of Chinese LED lighting to the US, but also brings uncertain development risks to US domestic lighting manufacturers. The future impact of the new tariff policy on the global LED lighting industry remains to be seen. (Text: Irving)
