By Jean-François Venne

This article was originally published in the January-February 2025 issue of Optik Magazine.

Donald Trump has threatened to significantly increase trade tariffs on Chinese imports and impose a 25% surcharge at the border on Canadian products. This could have wide-reaching implications for North America’s optical industry.

Karl Marx is often credited with saying, “History doesn’t repeat itself, but it often rhymes.” That sentiment resonates as Donald Trump, freshly re-elected, revisits the aggressive trade tariffs that marked his first term. The optical industry was not spared in the past. In 2019, his administration imposed tariffs of 10% to 25% on a range of Chinese imports, including eyeglass frames, ophthalmic lenses, sunglasses, cases, and cleaning solutions.

“This time, Trump is threatening tariffs as high as 60%, which has our members worried—especially since certain materials, such as cellulose acetate, are not competitively available in the U.S.,” says Omar Elkhatib, Senior Director of Government Affairs at The Vision Council.

25% Tariffs and Counting

Historically, Chinese optical products were subject to tariffs of 2% to 2.5%. “Since Trump’s initial presidency, these rates have averaged between 7% and 7.5%. Some items, such as eyeglass cases, cleaning solutions, and frame-making equipment, are now taxed at 25%,” Elkhatib explains.

In Canada, ophthalmic frames have so far escaped this tariff war. However, Chinese-made sunglasses face a 5% duty, and this could change. Pierre Poilievre, the Conservative Party leader who currently enjoys a commanding lead in polls, has repeatedly stated that Canada should align its tariff policies with the U.S. when it comes to China.

In 2022, Canada imported over $76 million worth of plastic frames from China, compared to $46 million from Italy and just under $6 million from France, according to government data. Chinese sunglasses imports were valued at nearly $91 million, compared to $106 million for their Italian counterparts.

The “Made in USA” Path

The rise in trade tariffs, coupled with the pandemic’s impact on global supply chains, is pushing the optical industry to consider increasing production in North America. However, industry leaders argue that government support is essential for such a shift.

“We need tax incentives or financial support to bring more production back to the U.S.,” says Elkhatib. The Vision Council has also called on the U.S. government to relax its criteria for what qualifies as “Made in the USA.”

A 2024 report by The Vision Council found that half of consumers believe frames assembled in the U.S. with imported materials should qualify as “Made in the USA.” Current laws, however, prohibit such labeling. The report also reveals that nearly half of consumers are willing to pay 5% more for frames made domestically.

Risks for Canada

New American tariffs on Chinese and Canadian imports could affect Canada’s optical industry in multiple ways. “The North American optical supply chain is highly integrated, with products flowing back and forth between the U.S. and Canada. The industry also relies heavily on imports from China,” says Michel Rochette, President of the Retail Council of Canada (RCC) in Quebec.

Some Canadian companies import frames, materials, and other products from China through U.S.-based warehouses. This is especially true for businesses with operations on both sides of the border. However, these goods are subject to U.S. tariffs on Chinese imports.

There is also the risk that the U.S. could impose tariffs on Canadian exports if they contain Chinese components. For example, frames designed in Canada but manufactured in China, or those assembled in Canada using Chinese materials, could be targeted.

A 25% tariff on Canadian exports to the U.S. would severely impact Canadian optical designers and distributors, many of whom rely on American clients. “It’s unclear whether this is a genuine threat or a tactic to force an early renegotiation of the Canada-United States-Mexico Agreement (CUSMA). Regardless, businesses must prepare for the worst,” Rochette warns.

Adapting to Uncertain Tariff Scenarios

Adjusting to potential tariff hikes—whether targeting Chinese or Canadian products—is no easy feat. “Some companies might explore sourcing alternatives outside of China or reconfigure their supply chains to avoid routing products through the U.S. Of course, part of the tariff increases is likely to be passed on to consumers through higher prices,” Rochette explains.

The greatest challenge, however, will be unpredictability. The return of Trump to the White House in January, combined with political instability in Canada, could create a volatile environment for Canadian retailers, including those in the optical sector.

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Source for tariffs on Chinese optical imports to Canada (Chinese imports are subject to the MFN tariff): https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2025/html/00/ch90-eng.html#wb-auto-4

Source on the value of imports from China (sunglasses): https://ised-isde.canada.ca/app/ixb/cid-bdic/exportingCountries.html?hsCode=900410&countryCode=553

Source on the value of imports from China (plastic ophthalmic frames): https://ised-isde.canada.ca/app/ixb/cid-bdic/exportingCountries.html?hsCode=900311&countryCode=553

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