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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Jeff,

I think that that is all true "in theory" but never seems to play itself out in the real world.

Corporations have been addicted for decades to cheap foreign labor because they have taken the attitude that if there was a way to wring out one more nickel of profit for a shareholder dividend or a CEO bonus, then to do NOT do so was somehow unethical at best and completely unAmerican at worst. Any manufacturing brought back to the United States is likely going to be done mostly by robots.

Now Main Street's whitewashed windows
And vacant stores
Seems like there ain't nobody
Wants to come down here no more
They're closing down the textile mill
Across the railroad tracks
Foreman says, "These jobs are going, boys
And they ain't coming back
To your hometown
Springsteen...
 
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I am selling two boats and my wife is buying our retirement boat, it was built in Netherlands.
It landed on the east coast and was shipped to Washington state a few years ago.
Import duty papers are no where to be found and CBP has no record of entry. We are processing the “entry”now at 1.5% duty instead of waiting for the marine tariffs to be in play at 25% or whatever number.

On balance I am a yes vote on tariffs.

How does this relate to eye care?

Lots of eye care done to pay the duty on the boat.

Maui Jim strikes me as in interesting case on tariffs.
Us company, HQ in IL, lenses manufacturer in state, but all the frames come in from Italy and Japan as far as I can tell.
We shall see.

p.s. I watched Brett Baier interview the DOGE leadership team on the tube last night, I recommend viewing for all Americans.
 
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From an econ 101 perspective, tariffs are a tax, and all taxes are bad because they create deadweight loss, leading to a loss in total societal welfare.

Almost all economists agree that societal benefits (building roads, schools, etc) to many taxes (income, sales, property, etc) outweigh these deadweight losses and are a necessary evil.

Almost all economists also agree that societal benefits to tariffs do not outweigh these deadweight losses, largely because (1) they are less efficient than consumption taxes, and (2) they create another economic evil: decreased trade.

Therefore, there is no economic argument for tariffs. (at an econ 201 level, there are a few economically theoretical uses of tariffs in very limited circumstances, but at an econ 301 level, they have almost universally been implemented poorly and everyone would have been better off with no tariffs instead of the incorrectly-executed ones.)

While there can be political argument for tariffs, using political arguments for an economic tool is like using political arguments for any other subject, including medicine: you can do it, but you don't have the intellectual and real-world backing of years of studies and observed results inside that subject.

I trust experienced businessmen more than "professional economists" every day of the week.

Here, I disagree with Dr. Nelson's perspective of trusting experienced businessmen more than professional economists on the subject of tariffs. Businessmen may deal with tariffs, but they do not understand the theory and history behind them. I trust experienced politicians when it comes to politics, experienced businessmen when it comes to business, experienced economists when it comes to economics, and experienced optometrists when it comes to optometry. I do not trust experienced politicians nor experienced businessmen nor experienced optometrists when it comes to economics.

I wonder if Dr. Nelson also trusts experienced businessmen more than professional optometrists when it comes to optometry?

I trust myself a little more than most when it comes to economics as I majored in it, although I still trust the years of research and overall thoughts of professional economists over my own ideas on the subject.

As usual, Wikipedia offers a great overview where you can decently educate yourself in just a few minutes: https://en.wikipedia.org/wiki/Tariff
 
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I think it's insane that some Americans (and others) don't think the largest economy in the world should expect to be treated fairly when it comes to Trade. Every country gets considerable benefit trading with the USA and almost all of them charge significantly larger Tariffs than we do. Our Northern and Southern neighbors don't respect our economy or border at all. Canadians are threatening not to vacation in the USA or buy our products. If Americans reciprocated who do you think would feel the most pain?

Canada is privileged in having the country with the world's strongest military as a neighbor, meaning they don't have to spend hardly anything on defense. Do they say thank you? Nope. They whine, and cuss, threaten and gnash their teeth that the USA dare to expect to be treated fairly. Instead of gratitude for their security they poke fun at our Defense spending. Pretty darn obnoxious.

Was planning atrip to Vancouver but have decided to boycott Canada. I hope other Americans do the same.
 
so should Americans be concerned about the imbalance and use of tariffs against the US? it seems a balanced playing field should be pursued if not able to eliminate them
Have the Canadians historically been charging tariffs on good they import from the U.S.? I can tell you that they are mighty concerned about the Chinese that will be imposing a larger tariff on Canadian canola seed and canola oil. The Canadians do, however, charge a 100% tariff on Chinese vehicles. I wonder if the Canadians export any vehicles to China (doubt it).

A few years ago, I had read that the Chinese loved buying American made Buicks. Wonder if there were any tariffs that applied.
 
I queried ChatGPT on the question of tariffs.

Has Amazon, Walmart, HomeDepot and the USA automobile sector benefited from the past tariff situation?

ChatGPT said:​

Yes, these major corporations and industries have, in different ways, benefited from past tariff situations. Here’s how:

Amazon, Walmart, and Home Depot (Retail & E-Commerce)

  1. Low-Cost Imports Helped Profits
    • Historically, the U.S. has had low tariffs on consumer goods, allowing Amazon, Walmart, and Home Depot to import cheap products from countries like China, Vietnam, and Mexico.
    • This kept costs low, boosting profit margins while offering low prices to consumers.
  2. China’s Low Tariffs on E-Commerce Helped Amazon
    • Before the U.S.-China trade war, China had low or zero tariffs on e-commerce shipments under de minimis rules (small packages under a certain value).
    • This allowed Amazon to sell U.S. products to Chinese consumers more easily than traditional exporters.
  3. Walmart’s Supply Chain Advantage
    • Walmart has heavily relied on Chinese manufacturing to keep prices low.
    • The U.S. did not impose high tariffs on most imported consumer goods, allowing Walmart to dominate the low-cost retail market.

U.S. Automobile Sector

  1. Foreign Market Barriers Limited U.S. Exports
    • While U.S. auto companies faced high tariffs abroad (e.g., 25% in China, 10% in the EU), they benefited domestically by selling more in the U.S. market.
    • However, American automakers struggled to expand internationally due to tariff disadvantages.
  2. Foreign Car Manufacturers Benefited More
    • While Ford and GM faced high tariffs abroad, companies like BMW, Toyota, and Honda built factories inside the U.S. to avoid tariffs and gain U.S. market share.
    • This strategy helped foreign automakers more than it did American brands.
  3. Tariffs on Steel and Aluminum Increased Costs
    • The Trump administration’s tariffs on steel and aluminum (2018) hurt U.S. automakers by raising material costs.
    • This made U.S.-made cars more expensive compared to foreign brands that sourced materials differently.

Who Benefited the Most?

  • Retailers like Walmart, Amazon, and Home Depot benefited the most from low import tariffs on consumer goods.
  • The U.S. auto industry had mixed results—while it protected domestic sales, it struggled in foreign markets.
  • Foreign automakers that built U.S. factories (Toyota, BMW, etc.) gained more than Ford and GM because they bypassed tariffs while benefiting from the U.S. market.
 
Jonovan:
"Societal benefits". Really?

In theory "free trade" has all sorts of ideal outcomes. In politics "fair trade" is a cudgel to be used to justify tariffs.

But in the real world, using tariffs for certain outcomes makes sense.

There are times for "freer trade" and there are times for "more restrictive trade" just like there are times for tight money policies and loose money" or open borders and closed borders.

The government uses tools to achieve desired outcomes in a lot of ways.

Would it be better to have some libertarian economic principles running full bore at all times? Probably, but again "societal benefits" can be bigger than economics.
 
I think it's insane that some Americans (and others) don't think the largest economy in the world should expect to be treated fairly when it comes to Trade. Every country gets considerable benefit trading with the USA and almost all of them charge significantly larger Tariffs than we do. Our Northern and Southern neighbors don't respect our economy or border at all. Canadians are threatening not to vacation in the USA or buy our products. If Americans reciprocated who do you think would feel the most pain?

Canada is privileged in having the country with the world's strongest military as a neighbor, meaning they don't have to spend hardly anything on defense. Do they say thank you? Nope. They whine, and cuss, threaten and gnash their teeth that the USA dare to expect to be treated fairly. Instead of gratitude for their security they poke fun at our Defense spending. Pretty darn obnoxious.

Was planning atrip to Vancouver but have decided to boycott Canada. I hope other Americans do the same.
In this context…what does “treated fairly” mean to you?

If you exclude oil and gas, the US actually has a trade surplus with Canada.
 
so should Americans be concerned about the imbalance and use of tariffs against the US? it seems a balanced playing field should be pursued if not able to eliminate them
In theory, yes but at the end of the day, I just don’t see a lot of manufacturing moving back here as long as there are places in the world that pay workers a dollar a day. So if you want to pay $6000 for your next iPhone, go ahead and assemble iPhones in Bakersfield.

Again, big corporations have exploited cheap worldwide labor and lax environmental policies for decades because if there was a way to get one more nickel of profit for a shareholder dividend or a CEO bonus, that was just fine because “Greed is Good.”
 
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Here are some things to think about.

US current account deficit in 2024 was $1.1T or 4% of GDP. This means that all entities in the USA consumed $1T (4%) more than they produced.

Most of that $1T comes back to the USA to purchase treasuries; this boosts the value of the USD, making imports cheaper, and suppresses interest rates. If the goal of tariffs is to tighten the current account deficit then you should expect a lower USD and higher rates.

Reducing the current account deficit could be achieved several ways; 1. Increase the value of your exports by exporting more stuff or exporting more valuable stuff. 2. Reduce your imports. Tariff wars make #1 impossible, so you’re left with #2.

If you reduce imports you can either consume less or make more domestically. But making more at home will require investment in equipment and create more competition for labour. Both will have costs at the same time there is pressure on the USD and rising interest rates.

I think this ultimately means that the US government and US consumers will need to consume less stuff because prices will be rising from the competition for capital investment and labour.

Final thought. Basically you’re trying to remake your economy in the image of Germany which is characterized by current account surplus, balanced government budgets, tight wad consumers (savers). But is that what you really want because Germany is the land of low economic growth, poor stock markets returns and stagnant income growth?
 
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1743303268670.png

We live amidst low-quality junk.
 
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Excellent discussion in this thread.

At one time American workmanship was the best. But I feel that over the years we have priced ourselves out of the market. Honestly how can afford a plumber, or carpenter or electrician at todays rates. If we try to build fine furniture, companies may be hiring a guy for 19 bucks/hour. I feel that they worker will not be a precision craftsman and will have very little loyalty to that job. But can they really afford to pay him/her $40-50/hr to get fine craftsmanship?

I am sure Mexico has some craftsmen, but generally they are hiring cheap labor. I have seen the workmanship in places like Colorado & Florida, done by immigrant workers, and it is shoddy.

Same question for auto workers. Can they get precision craftsmanship, like done in Japan, with US workers at US wages+ benefits? If they pay for those craftsmen in the US it is going to add a lot to cost, unless they continue to further automate the process.

So if these possible tariffs bring jobs back, will it result in shoddy workmanship by lower paid labor, or if high skilled high pay craftsmen do the job, are Americans going to be paying a lot more for an F-150 or Silverado built in the USA?
 
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Excellent discussion in this thread.
I must resort to a classical comment..."In the land of the blind,the one eyed man is king".

ODs discussing economics based not on education but what they learn from media with like mined opinions.

Imagine a group of PhD economists discussing the economic challenges faced by Optometry.

Will the administration have a last minute change in tariff plans?

Would your practice survive if a management consultant came into your practice saying you are spending too much on labor. Vision Care plans are treating you unfairly.

The consultant action without protest from you is fire most of the staff. Drop the Vision Care Plans until they begin treating you "fairly".
 
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Most of our OD comments on this topic are "pro-tariff".

For those undecided a balanced report from the 3/30/25 digital Associated press.

Trump’s promised ‘Liberation Day’ of tariffs is coming. Here’s what it could mean for you
President Donald Trump says Wednesday will be “Liberation Day” — a moment when he plans to roll out a set of tariffs that he promises will free the United States from foreign goods. At stake are family budgets, America’s prominence as the world’s leading financial power and the structure of the global economy. Read more.
 
Most of our OD comments on this topic are "pro-tariff".

For those undecided a balanced report from the 3/30/25 digital Associated press.

Trump’s promised ‘Liberation Day’ of tariffs is coming. Here’s what it could mean for you
President Donald Trump says Wednesday will be “Liberation Day” — a moment when he plans to roll out a set of tariffs that he promises will free the United States from foreign goods. At stake are family budgets, America’s prominence as the world’s leading financial power and the structure of the global economy. Read more.

I didn't make a spreadsheet or review the 115 comments but I don't sense that "most" OD's here are pro-tariff
 
so should Americans be concerned about the imbalance and use of tariffs against the US? it seems a balanced playing field should be pursued if not able to eliminate them
I didn't make a spreadsheet or review the 115 comments but I don't sense that "most" OD's here are pro-tariff
I meant frequent posters such as you, not our 28K membership who rarely post.
 
I meant frequent posters such as you, not our 28K membership who rarely post.
yeah, I don't think any of the frequent posters are pro-tariff

it's exactly why I referenced the 115 comments that doesn't include the 28K lurkers, no idea why you think I meant any of them

I think you sense incorrectly, by a lot what is in the mind of frequent posters on this, maybe on a bunch of things
 
yeah, I don't think any of the frequent posters are pro-tariff

it's exactly why I referenced the 115 comments that doesn't include the 28K lurkers, no idea why you think I meant any of them

I think you sense incorrectly, by a lot what is in the mind of frequent posters on this, maybe on a bunch of things
I only judge by what I read.

I try not to comment unless it will help move the conversation along.