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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That’s just your opinion. We didn’t shred our credibility, that’s just MSNBC “expert commentary.” What we did was anger a bunch of our trade partners” who’ve acclimated to a system of “WE are the ones that tariff, not you!”
No, it is not. I do not watch MSNBC or even have cable TV for that matter.

Look at the value of the USD vs. other currencies. Look at interest rates (ie, what rate of return it is taking to get foreigners to buy T-bills now). Read the Financial Times (ie, the pink paper, the paper of record for international business). Talk to some people in Canada, Europe, or Asia (I have, and do...)

Talk to business leaders who actually have to do business with folks outside the US for their livelihoods. Again, I have. If you think it is rainbows and unicorns for them right now, you don't really understand what is happening.

I'll be in Europe in a couple of months, and I am not looking forward to the reception I'm going to receive, nor to having to spend 20%+ more than I'd planned when I booked it last year ...
 
No, it is not. I do not watch MSNBC or even have cable TV for that matter.

Look at the value of the USD vs. other currencies. Look at interest rates (ie, what rate of return it is taking to get foreigners to buy T-bills now). Read the Financial Times (ie, the pink paper, the paper of record for international business). Talk to some people in Canada, Europe, or Asia (I have, and do...)

Talk to business leaders who actually have to do business with folks outside the US for their livelihoods. Again, I have. If you think it is rainbows and unicorns for them right now, you don't really understand what is happening.

I'll be in Europe in a couple of months, and I am not looking forward to the reception I'm going to receive, nor to having to spend 20%+ more than I'd planned when I booked it last year ...
I have no doubt they really don’t like it. If I was them and had been in such a lopsided relationship where all of a sudden the other partner said enough is enough, I’d be upset too. Things are going to change for the worse for them and they’ve been taking advantage so long that they think they’re just ENTITLED to having the advantage.
 
I have no doubt they really don’t like it. If I was them and had been in such a lopsided relationship where all of a sudden the other partner said enough is enough, I’d be upset too. Things are going to change for the worse for them and they’ve been taking advantage so long that they think they’re just ENTITLED to having the advantage.
Taking advantage, how exactly? Cite some examples where you see a company felts "taken advantage" of when trading with a partner?
 
I'll be in Europe in a couple of months, and I am not looking forward to the reception I'm going to receive, nor to having to spend 20%+ more than I'd planned when I booked it last year ...
The Canadians were completely gracious with us when we were there 2 weeks ago. Of course their local news was 100% tariffs cover to cover. They did mention that they have a 100% tariff on Chinese vehicles.

You will be fine.

Honestly this is not that bad. When I went to Italy in 2006, it was about 1.48

1744742671326.png
 
You cannot just charge into something like a trade war half-cocked without ruining the economy (and even if you think it is a "good idea" to implement a tariff, because of the rapid and unpredictable nature of these tariffs, the economy is on a path to recession, as businesses pull back. Probably a deep recession at that: Look at the rapid rise in interest rates, and the sinking value of the USD. That tells you everything, stock prices aside.)
I would have done the phase in but then I am probably a poor negotiator and very careful to pull the trigger. Keep in mind tht the POTUS only has 4 years to get the job done. So my 6-7 year phase in would probably be ruined by the next guy.

The iPhone issue is an interesting one -- the scale and scope of manufacturing seems to escape people. Consider that Apple sells about 200,000,000 iPhones in the US annually. 200 million!

It is a damned shame they did not figure some way to keep many of those jobs in the U.S.

I do hope they don't crash APPL because I will go from a robust retirement to an average retirement. I heavily weighted in AAPL. Of course I am playing with the houses money.
 
Ugh…are we going to have a “other countries don’t tariff us” discussion? Because it’s dumb and I’m not interested.
Again, rather than being surgically precise, the widespread, indiscriminate application of these tariffs [even on countries with no population, for reasons] are absolutely causing havoc across all business sectors, causing widespread distrust with trading partners, and making our economy less attractive to investors. The dollar is sinking, inflation is rising, interest rates are also rising. Which means something like stagflation could very well be on the horizon. Get ready to party like it is 1977 again ...

This was all unnecessary.
 
Ugh…are we going to have a “other countries don’t tariff us” discussion? Because it’s dumb and I’m not interested.

I was basically going to post what Adam just did. I don't think people really care about tariffs. It's the nature in which he's implemented them with seemingly no plan whatsoever and he keeps turning them off and on and then off and then on and then up and then down and then on and up and then on and down and this is exempt and now that's exempt but actually we're going to re-tariff that soon, etc, etc, etc. He could do this in a way that makes sense. This ain't it.

I should watch my words though. I have tattoos and we've discontinued due process in this country.
 
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Again, rather than being surgically precise, the widespread, indiscriminate application of these tariffs [even on countries with no population, for reasons] are absolutely causing havoc across all business sectors, causing widespread distrust with trading partners, and making our economy less attractive to investors. The dollar is sinking, inflation is rising, interest rates are also rising. Which means something like stagflation could very well be on the horizon. Get ready to party like it is 1977 again ...

This was all unnecessary.
"Surgical" is personal and creates enemies whereas "widespread" represents a national strategy.

You guys are ridiculous. These tariffs have been in place for a week and everyone who was just lining up to have issues with Trump are climbing on their soap boxes. You're just too predictable.
 
"Surgical" is personal and creates enemies whereas "widespread" represents a national strategy.

You guys are ridiculous. These tariffs have been in place for a week and everyone who was just lining up to have issues with Trump are climbing on their soap boxes. You're just too predictable.
You literally have this ... completely backwards.

I'm not even going to post any more about this topic. My advice: go to your closest business school and audit an intro to International Business class. You'll be amazed by what you learn.
 
It's been 12 days and he's already changed them several times. THAT'S THE PROBLEM.
Or is that a SOLUTION? I feel pretty confident that you've never served in the military, but there's this new thing called "conditions on the ground" that affects how to proceed (that was sarcasm before the autistics come in explaining how that's not a new thing). Trump is responding to things like countries coming to us wanting to be friends, companies committing to building here and the time it'll take and a hundred other stimuli.

Smart people pivot. Only those with terrible management skills double down on things that very CLEARLY don't work regardless of changing conditions just because "that's their policy."
 
Or is that a SOLUTION? I feel pretty confident that you've never served in the military, but there's this new thing called "conditions on the ground" that affects your path. Trump is responding to things like countries coming to us wanting to be friends, companies committing to building here and the time it'll take and a hundred other stimuli.

Smart people pivot. Only those with terrible management skills double down on things that very CLEARLY don't work regardless of changing conditions just because "that's their policy."
We fundamentally disagree on how "smart" he is. Looks more like aimless flailing to me, but "art of the deal" or whatever. I guess time will tell.
 
You literally have this ... completely backwards.

I'm not even going to post any more about this topic. My advice: go to your closest business school and audit an intro to International Business class. You'll be amazed by what you learn.
Yeah, I'll get right on that so I'll have your level of understanding. Won't that be wonderful.
 
I'll just say that this is a disagreement between some rando know-it-all political wonks on a forum fishing in the smallest of ponds and one of the biggest international businessmen in history who's not only been President, but an icon for "building wealth" operating large global businesses who's surrounded by a team of economic advisors.

I think I'll just wait to see how things pan out with that second guy....
 
Because ChatGPT created the chart? o_O
But it would be so easy for a major exporter to take control of that land as their new site of registry for exports. Sort of like the cruise lines do, and sort of like the Chinese have done building new plants in Mexico.
 
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Trump has been President for what? 3 months? And you're judging a policy that's been in effect a whopping ONE WEEK. You really ARE a wonk if you're going to try to make the case that the dollar just all of a sudden started losing global standing.
My reply to you had nothing to do with trump or his policies. It was specifically to point out that your spouted narrative regarding US deficits and the strength of the dollar was without basis in reality, and done so with citations.
 
My reply to you had nothing to do with trump or his policies. It was specifically to point out that your spouted narrative regarding US deficits and the strength of the dollar was without basis in reality, and done so with citations.
My "spouted narrative?" So, the idea that the dollar has been losing value over a lot longer than 12 days is just some narrative I made up??

Jesus Christ, Larry. You people just live in a completely different world than the rest of us.
 
My "spouted narrative?" So, the idea that the dollar has been losing value over a lot longer than 12 days is just some narrative I made up??

Jesus Christ, Larry. You people just live in a completely different world than the rest of us.
And now this...

retaliatory tariffs on U.S. goods to 125%. That matches the level of tariffs that President Trump has placed on Chinese imports, although those taxes can rise as high as 145% for some products.3 hours ago

China orders its airlines to stop accepting deliveries of Boeing ...​

1744750523920.png
CBS News
https://www.cbsnews.com › MoneyWatch
 
And now this...

retaliatory tariffs on U.S. goods to 125%. That matches the level of tariffs that President Trump has placed on Chinese imports, although those taxes can rise as high as 145% for some products.3 hours ago

China orders its airlines to stop accepting deliveries of Boeing ...

View attachment 46787
CBS News
https://www.cbsnews.com › MoneyWatch
and? Look all over the internet and you'll find videos of Chinese people laughing about "look at all of the American products in our house" and there's literally not one thing. Losing them as customers means exactly SQUAT to 99% of the public.

Boeing has issues way beyond whether China stops ordering planes for a month.

Let those people raise their tariffs to 1000%. Really make it impact the 0% of Chinese people so that they'll continue to NOT buy our goods because of their already high tariffs....but let their businesses lose AMERICA as customers (America represents over 40% of the global commerce) and their entire economy dries up and dies. Bye bye.

Whoopdidoo.
 
My "spouted narrative?" So, the idea that the dollar has been losing value over a lot longer than 12 days is just some narrative I made up??

Jesus Christ, Larry. You people just live in a completely different world than the rest of us.
How long is "a lot" longer? Because against every currency I looked up we've been generally up over the last decade or two. The last month...not as pretty.
 
I get it, but I don’t like that electronics are exempt. I get microchips because we really need to build a partnership with Taiwan until we get chips built here and that weakens China, but electronics would really hit them hard and force them to the negotiating table.

Yes, iPhones would be more expensive for a few months. Whoopdidoo. People ALREADY “can’t afford them” and that’s why cell providers had to get creative to finance them into your bill and make trading them in desirable AND doable….or do you think the average person is just out dropping $1500 in one whack on the iPhone 16 Pro Max??

Is it the panic that’s making everyone forget basic economics? The most important cost setting factor isn’t what companies what to charge. If that was the case, I’d charge $1M eye exams and $1M for a pair of glasses, see 5 patients and go home forever. The MAIN determinant is what the consumer will pay. They can raise the cost of an F150 to $500k, but they’ll go belly up because nobody can or will pay that. It’s the same basic flaw in the “do you want $20 avocados???” argument.

Apple made $180B in profit in 2024. Do you think they’d rather make nothing if they can’t make that same margin because their COGS increased?? If they only profit $100B, they’ll just close up shop because it’s no longer worth it? Come on. Will prices go up? Meh, probably…but again, they’re not going to raise them so much that people won’t buy them. That’s just how it works.
Never hit send, but since it's still kinda a topic of conversation. I personally don't understand the draw for those things. I've been on a pre-paid plan and buy nothing more than a motorola or LG phone that has the capabilities I want. Yeah vacation photos aren't what they could be but I'm out the door with a motorola or LG for less than $200 most of the time with 128 GB. That's enough for me and there's not an added value to an Iphone which justifies a 7x increase in price.
 
Never hit send, but since it's still kinda a topic of conversation. I personally don't understand the draw for those things. I've been on a pre-paid plan and buy nothing more than a motorola or LG phone that has the capabilities I want. Yeah vacation photos aren't what they could be but I'm out the door with a motorola or LG for less than $200 most of the time with 128 GB. That's enough for me and there's not an added value to an Iphone which justifies a 7x increase in price.
This guy gets it.

Guaranteed to have a fraction of our stress.