Tariffs, Trade, And The Optical Industry: What Are Your Brands Telling You?
For much of my adult life, U.S. trade policy has revolved around lowering tariffs and promoting free trade. Since the Reagan era, both major political parties have generally supported this model. That’s why the current turn toward aggressive tariffs—led by the same political movement that for several generations championed free trade—feels like a sharp and surprising pivot.
Donald Trump has changed all of that. In just seven months back in office, his administration has reintroduced a volatile approach to trade, with tariffs imposed or threatened across a wide swath of imports. Even trade deals his team negotiated and championed during his first term have been tossed aside. The result? Economic uncertainty across many sectors—including ours.
The optical industry is particularly vulnerable to disruptions in international trade. A significant portion of the eyewear, lenses, and contact lenses sold in the U.S. is imported, and China remains a dominant supplier. Although China recently received a 90-day reprieve from additional tariffs, the long-term outlook remains uncertain. Tariff rates could soon jump from the current 7.5% to as high as a proposed 155% or more, depending on how new trade measures are implemented.
Further complicating the situation, certain eyewear produced in China is rerouted through the European Union, reclassified under the so-called “final screw” rule, and declared as EU-origin. While these products face a lower 15% tariff, the underlying logistics remain opaque—even as the financial consequences are increasingly evident.
These shifts are already reshaping the optical industry’s business practices. While other sectors may be exploring reshoring—Apple’s rumored domestic manufacturing expansion, for instance—these transformations don’t happen overnight. Rebuilding infrastructure like semiconductor or optical component plants can take years and require massive investment.
In the meantime, the pressure is mounting. While there is encouraging growth in U.S.-based optical manufacturing, it still lags far behind China in both scale and affordability—particularly in the budget to mid-range frame market.
But beyond the economics, there’s another layer to consider: brand perception.
As tariffs take effect, companies are being forced to make tough choices. Some are choosing to absorb the added costs entirely, shielding customers from immediate price increases—at least for now. Others are passing the full impact on to clients, adjusting prices accordingly. A third group is opting for a middle ground, sharing the burden by splitting the cost increases between the business and the customer.
While absorbing tariffs may seem like a short-term solution, it raises questions about long-term sustainability. How long can companies continue to eat those costs before margins erode? And if tariffs rise as sharply as projected, at what point will even the most customer-focused businesses have no choice but to pass them on?
Each of these strategies tells a story. When a company absorbs a 10%, 15%, or even 25% tariff, what does that imply about its margins and its priorities? If they can take the hit and still stay profitable, how much padding was built into their pricing to begin with? On the other hand, when a company passes on every penny of the tariff, how does that affect its image—especially in a market where price sensitivity is high?
There’s no universal right or wrong here. Every company must decide what aligns with its values, margins, and market position. But it’s worth asking: What is your brand communicating to you through its pricing decisions?
At the same time, optical retailers face growing pressure on their pricing models as wholesale costs continue to rise. How long can they realistically absorb these increases before passing them on to patients and customers?
In a moment when global trade is shifting and uncertainty is the new normal, the way companies respond is telling. It reflects not just business strategy, but how they value their customers and their long-term reputation. At the end of the day, how suppliers deal with tariffs is as much a marketing decision as it is a financial and even political one.
The brands you support are making decisions that go far beyond profit and loss. Are you paying attention?
Original link: https://www.opticaljournal.com/tariffs-trade-and-the-optical-industry-what-are-your-brands-telling-you/