Eaton announces price hikes for lighting products to pass on tariff costs

“The lighting industry continues to face rising costs in several key areas such as electronics, metals and other commodities, transportation and wage increases. In addition, the US Department of Commerce and the US Office of Trade Representatives (USTR) have imposed tariffs on many products and components that affect costs. Therefore, we announce the following:

From October 1, 2018, the price of most lighting and lighting control products will increase by an average of 6%. Orders shipped immediately before or on September 30, 2018 will be invoiced at the current price. Previously quoted items are valid until September 30, 2018. A quotation received after October 1, 2018 will display a new quotation. The price list will be provided by a representative or salesperson of the local Eaton Lighting product manufacturer.

The US government imposed tariffs on Chinese parts and finished products, prompting us to pass on these costs by making additional, proportional price increases on the affected products sold by Eaton Lighting.

The United States began to impose tariffs on US$34 billion on Chinese products on July 6, and another US$16 billion tariff will take effect on August 23, 2018. These tariffs are expected to affect the cost of future material supplies.

The Trump administration plans to impose tariffs on about $200 billion of parts and finished products produced in China, which, if implemented, will have a significant impact on costs.

We are currently evaluating the impact of these tariffs on our products and we will continue to update you with additional tariff-related costs in the coming weeks. ”

It is reported that many American companies are raising prices or intend to raise prices. “More and more companies are telling us that they will begin to pass on rising costs, which will be reflected in the final commodity price.” Atlanta Fed President Raphael Bostic) said, “Many companies have told me that so far they have been able to absorb a significant portion of the price increase, but the space they are doing is disappearing.”

“I think, in general, the resistance to price increases is very small.” Michael Larson, chief financial officer of Illinois Tool Company, said that customers “understand” the rise in raw material costs and the price increase caused by tariff effects. And the potential demand is still strong, so that the company can offset the impact of rising costs through price increases.

Loretta Mester, president of the Cleveland Federal Reserve Bank, said that if tariffs cause a one-time price increase, the Fed is likely to remain on a gradual rate hike. Mestre said: "If we continue to impose these tariffs endlessly, the tax rate continues to increase, and the blows continue to increase, then we may experience a longer-term inflation rise, which will make the situation more complicated.”

According to another report, although the tariff war launched by the United States is aimed at cracking down on Chinese enterprises, it is actually American enterprises that have suffered huge losses. This is because a large number of “commodities imported from China” are products of American companies. The last thing to pay for tariffs is American families and consumers.