Following the expiration of Section 122 tariffs, The Vision Council (TVC) is advising members to prepare for another significant shift in U.S. trade policy. New country-specific duties are being implemented under Section 301 of the Trade Act of 1974.
The Section 122 tariffs, which imposed a 10% duty on imports, expired July 24. In their place, the Office of the U.S. Trade Representative (USTR) has implemented new Section 301 tariffs on imports for 60 economies over alleged forced-labor violations. Many of those countries play key roles in the optical industry’s global supply chain.
“This latest round of Section 301 duties adds another layer of complexity for members of the optical industry already navigating a shifting tariff landscape,” says Rick Van Arnam, regulatory affairs counsel for TVC.
Country-Specific Duty Rates
The new tariffs vary by country. For example, China, Vietnam, Thailand, and Cambodia, which are major sources of frames, sunglasses, and lens components, now face a 12.5% duty on top of existing rates. India and Indonesia face a 10% duty, while imports from the European Union and Taiwan are subject to a duty cap of 10% combined with existing duty rates.
Specifically, TVC advises members importing products from China to plan for the new 12.5% duty to stack with existing Section 301 tariffs already in place for most Chinese-origin goods, including the 7.5% tariff that applies to some products, including eyewear.
TVC members can model the cost impact for their product mix using its Tariff Dashboard.
Additional Trade Actions
The Vision Council notes that the new duties do not stack with Section 232 tariffs, and products qualifying under the U.S.-Mexico-Canada Agreement remain exempt. Although some Harmonized Tariff Schedule codes are exempt, traditional eyewear products do not qualify for the exemptions.
TVC also highlighted several additional trade developments, including a separate 25% Section 301 tariff on certain Brazilian goods that took effect July 22 and applies to optical products and manufacturing equipment from Brazil. Meanwhile, a proposed 50% tariff on certain Canadian goods has not yet taken effect, and TVC says it has not identified any optical products on the proposed list of goods.
The USTR is also investigating structural excess capacity in more than a dozen countries, which is expected to result in another round of Section 301 tariff announcements, according to TVC.
TVC offers continued updates on tariff developments impacting the optical industry on its website.