How Tariffs May Affect Eye Care

How Tariffs May Affect Eye Care
By Gretchyn M. Bailey, NCLC, FAAO


With the recent change in US leadership, tariffs have become part of day-to-day conversation. A tariff is a tax placed on goods entering or leaving a country by that country’s government.

For many, tariffs belong in macro economic discussions. However, tariffs have the potential to do more than affect multinational companies—effects from tariffs are likely to affect small independent businesses and ordinary people, such as optometrists and their patients.

At Vision Expo East in Orlando last week, in coordination with The Vision Council, attorney F.D. “Rick” Van Arnam, Jr., a partner at Barnes, Richardson & Colburn in New York, discussed how tariffs may affect eye care and outlined how today’s looming tariffs first became part of the landscape.

Tariff origins
In 2018, the Office of the United States Trade Representative opened a Section 301 investigation on intellectual property misappropriation by China that officials believe were adverse to US interests. Specifically, American companies were required to release proprietary technology to Chinese business partners as a prerequisite to the US company manufacturing or distributing in China.

Under Section 301 of the law, the federal government is able to take remedial steps to correct such bad actions. Therefore, a 25% tariff was assessed on merchandise made in China. At the time, the tariff was limited to products negatively affected by the Chinese bad actions, such as machinery. However, many more products were added to the tariff list.

China retaliated by enacting its own 25% tariff on US agriculture, of which China was a big consumer. China also identified other products that were subject to additional tariffs.

In return, the US created an additional tariff of 7.5% on a broader list of products—on top of the already established 2.5% duty on many imported items. That additional tariff increased duty on Chinese goods to 10%.

Note that a Court of Appeals case is challenging Section 301 tariffs. The case will likely be decided in the next few months, and the decision is likely to be appealed to the Supreme Court.

Eye care involvement
Eye care was affected by the additional tariffs by the involvement of things like spectacle lenses, plano sunglasses, over-the-counter (OTC) readers, low vision equipment, and lens finishing equipment.

However, companies were able to petition for relief—or exclusion—from Section 301 tariffs. If one company was granted exclusion, all other companies with similar products were also granted exclusion. For about a year, exclusions were issued for spectacle frames and reading glasses. Those exclusions ended in 2020, and attempts to renew them were not successful.

In February 2025, an additional 10% duty was announced for any Chinese origin product.

Says Van Arnam: “That 10% the eyewear company is paying to import those plastic spectacle frames from China just jumped to 20%. The same frame, if you bought it today from say Vietnam, would be a 2.5% duty; it is now 20% if it's coming from China. China is the biggest by far producer of of optical products, particularly frames.”

Mexico and Canada tariffs
Also in February 2025, a 25% tariff was announced for products coming from Mexico and Canada. This tariff was framed as action taken against the countries for allowing fentanyl and illegal immigrants into the US.

Says Van Arnam: “This was a huge deal because Mexico and Canada are two of our largest trading partners. “They are are border allies and historically have had good relations with the United States. “We have free trade agreements with both of them, which allow the vast majority of products that are made in Canada and Mexico to come into the United States free of duty and for products that are made in the United States to go into Canada and Mexico free of duty.”

Due to both Canada and Mexico making overtures to remedy the problems identified by the US, tariff enforcement was paused for 30 days. That 30-day period expires on March 4.

“Some companies in the eyecare industry who weren’t affected by the China trade were panicking because they would now be impacted by Canadian or Mexican trade,” says Van Arnam. “There is a lot of cross-border trade. You might have a lens processing facility on the Mexican side of the border with lenses sent over for processing and brought back into the United States for distribution.”

He wonders how the US will measure success for the remedies proposed by both countries.

“What metric do you use to measure fewer immigrants coming in or less fentanyl coming across the border?” he says.

Aluminum and steel
Within the past two weeks, a 25% tariff on raw aluminum and steel (and their derivative products) was announced. Most manufacturers in the eyecare space use both metals in their production, from frames to equipment.

Says Van Arnam: “These costs will ripple through the supply chain because I don’t believe any company will be big enough to absorb the cost and say it’s all on us.”

The additional duty will eventually end up in the cost of goods everywhere, including eye care. Van Arnam foresees challenges in the future because costs may not necessarily be passed onto patients or consumers due to negotiated contracts.

“Patients may have insurance which is paying only X amount,” he says. “Or maybe you’re selling frames to Veterans Affairs which won’t allow you to increase your price. There won't be a direct line from the 25% paid on the raw material to the finished value of the of the eyewear. Some of it will be absorbed, but at some point, you're going to see price hikes and hear people talking about how these tariffs will be inflationary.”

Tariffs on aluminum and steel were enacted prior to 2020; however, exclusions and agreements with other countries largely mitigated the effects. Those terms expire on March 12.

Reciprocal tariffs
The federal government is looking into imposing a tariff on all imported products, regardless of origin, to match the originating countries’ tariffs.

“There is a perceived injustice that the United States has tariffs that are historically lower than those of other countries while other countries have tariffs that are historically higher,” Van Arnam says. “The federal government is looking at what we charge for an item vs what country X charges for that item. If we are charging 2.5% for a pair of spectacle frames, and hypothetically, India is charging 10%, there is a 7.5% gap. Under the reciprocal theory, you would pay an extra 7.5% duty to import spectacle frames of Indian origin into the United States so the tariff amounts would match.”

Addressing reciprocal tariffs would likely create logistical challenges for smaller companies without the resources to quickly pivot.

Federal agencies involved with international trade are required to report by April 1 where reciprocal duties might apply. For example, will the duty apply to specific countries or specific products?

Upcoming tariff deadlines
• March 4: The 30-day pause on Mexican and Canadian tariffs expires. A 25% tariff may go into effect.
• March 12: Previous exclusions and agreements about raw aluminum and steel expire. A 25% tariff may go into effect.
• April 1: Reports due to identify where reciprocal tariffs might be applied.
 
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I know Kudlow's a dope and I just assume the other guy is talking out of his ass because of who he works for.
Right, I'm from the generation that doesn't really watch TV or cable news shows so when I see a glimpse of it I don't understand how people can't see through this stuff.

The Fox guy leads all of the the "questions" basically telling the guy what to say "So tell us how good it is going to be when these Tariffs take effect," or "So we are going to have all this new money to spend that we make from these Tariffs tell us how we will use that?" But dismissing the fact that all of that Tariff money will be paid by US citizens. All the while the host is literally shouting "Yes! Yes!" when the Trump official talks about things.
 
He’ll need help from Fed (lower rates) and congress (continue tax cuts to help those may pay more if they continue their consumption) but at least he’s trying.
Two Problems:

1. The FED will not play ball. Unless they are replaced with more political appointees (it could happen).
2. If the goal is a smaller federal budget deficit and smaller trade deficit then tax cuts will not be possible. Current budget deficit is 6.4% of GDP ($1.8T). Most people seem to want the deficit reduced to 3% (requires $844B in revenue or savings). Tariffs are expected to raise $600B. Therefore you are still short $244B BEFORE you cut taxes.
 
There are 195 countries on the planet. Trump tariffed 180 including a dozen or so tiny islands and others that we do not trade with at all. But it looked pretty on his Big White Board.

There were also four "exceptions:" North Korea, Cuba, Balarus and Russia. The rationale: all sanctioned so there is no trade with them.

Except that's not true of Russia. (Lots of what he said in not true, but that's not the issue here.) The USA did $3.5 billion in trade thus far this year.

Once again, Putin gets a get-out-of-jail free card.

Some economists are saying the Global Trade War will be a big win for China and Russia. They do not need goods from the USA at all and can find trading partners with UK and EU member nations who appear to opting to cease some/most trading with USA on April 12.
Yeah, what's the deal there? Last week Trump claimed he was pissed at Putin, but this week he didn't increase sanctions on Russia (via tariffs or any other means). And yes we do still trade with Russia, mostly fertilizer and fossil fuels, albeit more limited than pre-Ukraine.
 
Yeah, what's the deal there? Last week Trump claimed he was pissed at Putin, but this week he didn't increase sanctions on Russia (via tariffs or any other means). And yes we do still trade with Russia, mostly fertilizer and fossil fuels, albeit more limited than pre-Ukraine.
According to the Office of the US Trade Representative, trade between the US and Russia was worth $3.5bn (£2.7bn) in 2024. It mainly consisted of fertilisers, nuclear fuel and some metals, according to Trading Economics and Russian media.
https://www.bbc.com/news/articles/cdjl3k1we8vo

not fossil fuels while the nuclear fuel surprised me and sanctions are in place on oil along with all countries buying Russian oil receiving additional sanctions
 
You go with Walz and Harris then. Their message (was there one?) didn’t resonate with me. There’s a reason Trump is even back in office. Unsustainable is unsustainable and it leads to societal issues. A large chunk of people in this country don’t have assets (stocks, houses etc), they have debt. They were hurting from inflation way more than you and I from grocery increases, rent increases, insurance increases etc.

No need to continuously hash this out I suppose. Minds won’t be changed and that’s OK.
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Continued success to you all-let’s hope those stocks see a little green soon! Cheers!
 
For what it’s worth: my mentoring doctor when I was starting up told me the worst decision he ever made in his career was…

Selling his stocks/portfolio on Black Monday

That has stuck with me 20+years later!
 
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I forgot what day it was and posted an image from this morning. Shameful. I tried to delete but I must be too stupid to figure it out. Please forgive.

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For what it’s worth: my mentoring doctor when I was starting up told me the worst decision he ever made in his career was…

Selling his stocks/portfolio on Black Monday

That has stuck with me 20+years later!
Was going to DCA about 20% of my cash position in my IRA today but got busy at work and didn't login to Fidelity and Schwab to make the purchase before closing.
 
Sectors Most Affected
Plastic eyeglass frames imported from China are among the most affected products, now subject to a combined tariff rate of approximately 64%. This includes standard duties (2.5%), the China 301 duty (7.5%), IEEPA duty (20%), and the newly proposed reciprocal duty (34%). Over-the-counter reading glasses, complete eyeglasses, safety glasses and goggles imported from China will also now be taxed at a combined rate of 64%, and sunglasses will be taxed at 63.5%. A variety of eyeglass cases, lens processing equipment, and other optical machinery originating from China are expected to face combined duty rates between 80–90%.

China Duties Breakdown
ProductTariff Classification“Regular” Customs DutyChina 301 Duty, if Chinese OriginChina 2025 Tariff, if Chinese OriginReciprocal Duty RateTotal Duty
Contact Lenses9001.30.002%7.50%20%34%63.5%
Plastic frames or mountings9003.11.002.50%7.50%20%34%64%
Non-plastic frames or mountings9003.19.00free7.50%20%34%61.5%
Plastic lenses, optically worked and unmounted9001.50.002%7.50%20%34%63.5%
Sunglasses9004.10.002%7.50%20%34%63.5%
OTC reading glasses9004.90.002.50%7.50%20%34%64%
Eyeglass case with an outer surface of leather or composition leather, other than reptile leather4202.31.608%25%20%34%87%
Example of total duty rates for a variety of imported optical products and equipment.
I moved this post into this thread as an example to everyone - it is actually useful. No more political rants please, they will be deleted without any explanation. This thread is for concrete action people can take in the face of these new taxes.

So as above, if things hold as they are, the cost of specs will increase by about 67%, according to the Vision Council. The question is will consumers face the cost increase directly, or will suppliers try to eat the cost for a while and slowly raise prices? (ie, I've read Apple doesn't want people immediately paying $2,000 for a new iPhone, so they are going to try to ease people into it where they can.)
 
I moved this post into this thread as an example to everyone - it is actually useful. No more political rants please, they will be deleted without any explanation. This thread is for concrete action people can take in the face of these new taxes.

So as above, if things hold as they are, the cost of specs will increase by about 67%, according to the Vision Council. The question is will consumers face the cost increase directly, or will suppliers try to eat the cost for a while and slowly raise prices? (ie, I've read Apple doesn't want people immediately paying $2,000 for a new iPhone, so they are going to try to ease people into it where they can.)
Or do suppliers slow their imports?

I have read that Nintendo is delaying pre-orders of a new product because of tariffs, and Volkswagen is stopping shipments from Mexico and Germany and even holding ships at sea including special order Porsche’s customers have been waiting years for.
 
Chatting in the Subaru showroom yesterday... they're all set with the cars that were already in the US port and are now being trucked in. There's another batch scheduled to arrive in port mid-month that was of course ordered before the tariffs; they're not yet positive if those cars will be priced the same as the current batch or higher. Another batch scheduled for a few more weeks down the pike might or might not be delayed and will most likely be priced a few thousand bucks higher per car.
 
I’ll probably do the same thing as I did a few years ago when policy raised the price of gas & I started to see “fuel surcharge” added by some of my vendors:
Either decide to absorb the cost or raise my prices to pass it along.
 
Or do suppliers slow their imports?

I have read that Nintendo is delaying pre-orders of a new product because of tariffs, and Volkswagen is stopping shipments from Mexico and Germany and even holding ships at sea including special order Porsche’s customers have been waiting years for.
This is one of the (many) unintended and not-well-thought-through consequences of starting a trade war. Suppliers may choose to just say "I'm out!" and sell to someone else. And since most products today have at least some international components ...

My wife already heard of one Chinese supplier in her field who has already said if these new fees stand, they'll just sell into europe instead, where ROI will be higher. Thus creating a critical shortage of parts here in the US for this particular product.
 
Chatting in the Subaru showroom yesterday... they're all set with the cars that were already in the US port and are now being trucked in. There's another batch scheduled to arrive in port mid-month that was of course ordered before the tariffs; they're not yet positive if those cars will be priced the same as the current batch or higher. Another batch scheduled for a few more weeks down the pike might or might not be delayed and will most likely be priced a few thousand bucks higher per car.
So I was trying to nurse my 16 year old outback on a little longer (it was like a member of the family at this point), the plan was to give it to my teenager. Unfortunately, the car had other plans. RIP. [anyway my wife and in-laws were mortified that I'd give my precious son something so ... seasoned. ahem. In fairness to them, who knows if the airbags would even work at this age...]

Thus, last weekend I ended up at the Subaru dealer, they had a bunch of crosstreks and seeing what was going on, I took the plunge and bought one straight away, knowing that this $30k car could easily become $40k+ when all is said and done (95% japanese content, built in japan..)

I also for the first time ever took an extended warranty for 10 years -- also knowing full well that if these tariffs are going to be an ongoing thing, this 'economy' car will cost a fortune to repair. Just the screen in the center console will be a multi-kilobuck disaster, and that was before any tariffs ... at least my costs are now locked in.
 
I’ll probably do the same thing as I did a few years ago when policy raised the price of gas & I started to see “fuel surcharge” added by some of my vendors:
Either decide to absorb the cost or raise my prices to pass it along.
Will a patient swallow a 67% increase? For that matter, will VSP? Or medicaid? I have no idea ...
 
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Will a patient swallow a 67% increase? For that matter, will VSP? Or medicaid? I have no idea ...
Those of us who are long-time practice owners have seen all kinds of external influences & we decide how to react case by case.

I have not seen any price increase yet.
I expect I will.
I don’t expect it to be 67%

Show me how you know that’s what I’m going to be paying.
 
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I’ll probably do the same thing as I did a few years ago when policy raised the price of gas & I started to see “fuel surcharge” added by some of my vendors:
Either decide to absorb the cost or raise my prices to pass it along.
ABB did that and I moved to Fait. They're much clearer with billing. Next I got to get out of the buying group and just deal with each account directly. Their billing makes my merchant account seem crystal clear.
 
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I don't see where there was either speculation or exaggeration. It looked like a couple of questions followed with an "I don't know."
You’re planning to have your costs go up 67%?
I’m not.
IMO, that’s exaggerated & came from seeking the worst possible data point & running with it because of personal politics.

I’ll come back & apologize if that number turns out to be accurate.

For now, it’s someone trying to scare us & generate hate.
 
You’re planning to have your costs go up 67%?
I’m not.
IMO, that’s exaggerated & came from seeking the worst possible data point & running with it because of personal politics.

I’ll come back & apologize if that number turns out to be accurate.

For now, it’s someone trying to scare us & generate hate.
Honestly.....I have no idea.

The way it's gone the last several weeks, I would not be surprised if my COGS went up 0, 25, 67 or 300%.
 
How many here feel that many of these reciprocal tariffs are being negotiated down as we chat here. (using the Viet Nam example).
I'm sure there's some of that.

America is the largest economy and the wealthiest nation in the world. But there are plenty of other nations who are also wealthy. While we currently consume the most, we are 350 million people. There are 7.65 billon other people on the planet that nations can sell to.

Trade blocs that exclude the USA could be formed. The 10 BRICS nations currently account for over 40% of the globe's economic output.

I'm not sure why there is a massive rush to reshore manufacturing. There is obviously value in having some level of critical manufacturing here, as we saw during COVID, we should not be getting all of our medicines and PPE from overseas. We shouldn't be getting all of our semi conductors from one source.

But do we really want to bring back T-shirt and sock manufacturing from China? A lot of manufacturing is filthy and results in a lot of pollution. Let the other countries pollute themselves.
 
Will a patient swallow a 67% increase? For that matter, will VSP? Or medicaid? I have no idea ...
My guess is that the increase OD’s and the patient sees will not be 67%, that it will be some fraction of 67%.

Remember it’s 67% on the landed cost when it arrives at a US port of entry, then the distributor adds their markup before selling to a retailer or practice.

Of course there can be all kinds of secondary and tertiary effects that are just not predictable. Will suppliers try to juice their markup and blame tariffs? Will there be large increases in the cost of process items at the port (customs brokers)? Will transportation networks get screwed up? Will suppliers slow down imports hoping their will be a quick resolution or end of the tariffs?
 
How many here feel that many of these reciprocal tariffs are being negotiated down as we chat here. (using the Viet Nam example).
But what does the US really want?

Does it want a lower tariff rate? Well it’s already getting the WTO Most Favoured Nation Rate. It could have been lower for the USA but Trump 1.0 withdrew from the Trans Pacific Partnership.

Or does the US want to close the trade deficit? Viet Nam is still a very low income country, how are they going to afford to spend an extra $100B/yr on US goods?
 
But what does the US really want?

Does it want a lower tariff rate? Well it’s already getting the WTO Most Favoured Nation Rate. It could have been lower for the USA but Trump 1.0 withdrew from the Trans Pacific Partnership.

Or does the US want to close the trade deficit? Viet Nam is still a very low income country, how are they going to afford to spend an extra $100B/yr on US goods?
Does even China really buy much from the US. They would be wise to lower their tariff to zero then demand reciprocal tariffs from U.S. and the Canadians.
 
I'm not sure why there is a massive rush to reshore manufacturing.
The security of any nation depends upon its ability to manufacture goods to meet the needs of its citizens and armed forces.

A relative of mine led a naval battle off the Estonian shore in the seventeenth century to secure the supply of flax for England. Flax produced linen which was used to make sails for ships. Subsequent shifts in ship-propulsion technology (flax<coal<oil<uranium) over centuries eliminated this concern.
 
Does even China really buy much from the US. They would be wise to lower their tariff to zero then demand reciprocal tariffs from U.S. and the Canadians.
But that still doesn’t solve the real problem Trump seems to have with China - the trade deficit. Even with a low tariff rate China won’t be a big buyer. They have a culture and policy of being savers, not consumers.

I just don’t understand how this goes away; the other nations really don’t have much they can do, and Trump has made this into his signature policy move. Best case scenario is the other nations offer some small thing, he spins it has a victory, and reverses course.
 
Adam Farkas: Post 290

I moved this post into this thread as an example to everyone - it is actually useful. No more political rants please, they will be deleted without any explanation. This thread is for concrete action people can take in the face of these new taxes.

NOT asking for censorship but notice the hypocrisy ONCE MORE with selective censorship.
 
Even with a low tariff rate China won’t be a big buyer. They have a culture and policy of being savers, not consumers.
From what I have of Chinese tourists in Italy, they do seem to be developing a class of people that have very good disposable income. These people seem to want fine things. I am sure all of those fine things can be made in China. We taught them and they learned very well. In the last few decades they seem to have undergone an industrial revolution, and they seem to have engineers that take on labor jobs in foreign countries then expertly copy their technology and their process.

I recall that the Chinese did something similar at US airliner or fighter jet manufacturer sites. (I am sure Paul can search for the links).
 
I edited Larry's post to remove the sections that could be seen as partisan.

Otherwise, he was factual: The tariffs had real consequences, will continue to have real consequences, and we're discussing them here. Just like you did with inflation over the prior couple of years (search the old threads.)

Thanks
Adam
Very disappointing that you are now editing and removing content. Alternative viewpoints are suddenly "political" and become an excuse to stifle interesting discussions. Policies and legislation which result from political agendas directly impact my solo private practice every day: taxes, employees, cost of goods, etc. It is impossible to avoid politics with a thread titled: "How Tariffs May Impact Your Eye Care Practice."
 
Very disappointing that you are now editing and removing content. Alternative viewpoints are suddenly "political" and become an excuse to stifle interesting discussions. Policies and legislation which result from political agendas directly impact my solo private practice every day: taxes, employees, cost of goods, etc. It is impossible to avoid politics with a thread titled: "How Tariffs May Impact Your Eye Care Practice."
LOl. One of the posters was chastising us for not providing better Tariff justification arguments. I had to inform him he was in an echo chamber where dissenting voices are continuously censored. My guess on this tread alone Dozens of posts removed , maybe more. This thread is basically a bulletin board for tariff bashing.
 
Absolutely agree, Lisa. Thank you.

Adam, I love you, man, but editing posts or disappearing them without disclosing who and what was edited is censorship. I totally get and (try) to respect your rationale.

The fact is, this is political. It is policy decision that requires vetting. And it is partisan because one side has made it that way, with a stroke of a pen, without congressional approval in direct opposition to our Constitution and without citizen oversight.

What he-who-cannot-be named has done effects us directly, personally, our practice net and our patients ability to get the care they need. We can count/discuss the ways. But we cannot discuss the issues that make it that so. Is that not correct?

To be productive and effective, we should be discussing what we can do to protect ourselves (our net) and how we can best serve our patients in this stressful time. Discussing the tariffs is pretty pointless (IMHO) and discussing how it is coming about wont move that needle.

Not here, maybe, but globally, across our voting population---you bet.