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 think the uncertainty and poor messaging is adding fuel to the tanking fire. White House says going to 0% Tariffs is not enough for Viet Nam. I think many countries, and businesses just don't know what to do because the goal posts change every other day.

White House trade adviser Peter Navarro said Monday that an offer by Vietnam to eliminate tariffs on U.S. imports would not be enough for the administration to lift its new levies announced last week.

“Let’s take Vietnam. When they come to us and say ‘we’ll go to zero tariffs,’ that means nothing to us because it’s the non-tariff cheating that matters."
The new goal post sounds like an impossible endpoint; the elimination of the trade deficit, country by country. It's going to be a bumpy ride for anyone invested in the markets.
 
The new goal post sounds like an impossible endpoint; the elimination of the trade deficit, country by country. It's going to be a bumpy ride for anyone invested in the markets.
Also seems like it would be difficult to work on your agenda or other political goals while trying to negotiate with every country in the world with different endpoints and deals before the midterms.
 
I think the uncertainty and poor messaging is adding fuel to the tanking fire. White House says going to 0% Tariffs is not enough for Viet Nam. I think many countries, and businesses just don't know what to do because the goal posts change every other day.

White House trade adviser Peter Navarro said Monday that an offer by Vietnam to eliminate tariffs on U.S. imports would not be enough for the administration to lift its new levies announced last week.

“Let’s take Vietnam. When they come to us and say ‘we’ll go to zero tariffs,’ that means nothing to us because it’s the non-tariff cheating that matters."
The part that confuses me as I'm trying to really understand all of this deeper, is that Trump keeps saying that all of these nations that we have trade deficits with are "screwing us." Leaving China aside for a moment because I think they are legitimately screwing us in other ways, but in terms of straight trade deficits, how is that a "screwing?"

A brief search shows that the USA has trade surpluses with the Netherlands, Australia, the UAE and the UK.

Does this mean we are screwing them?
 
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So if I did self analysis, I would say I like to dip a toe in the water before I jump all the way in or pull the trigger.

If you guys all made me in charge I would create a phase in tariff system over an extended period of years. Say 5-6 years with escalating tariffs for those not in compliance. But, that is not as effective for forcing a deal, and that may not work if the POTUS only gets 2 terms.
 
The part that confuses me as I'm trying to really understand all of this deeper, is that Trump keeps saying that all of these nations that we have trade deficits with are "screwing us." Leaving China aside for a moment because I think they are legitimately screwing us in other ways, but in terms of straight trade deficits, how is that a "screwing?"

A brief search shows that the USA has trade surpluses with the Netherlands, Australia, the UAE and the UK.

Does this mean we are screwing them?
Those companies are (was?) our allies, we already had a free trade agreement in place, and they were already buying a bunch from us and we are actively trying to nuke their economies.

Seems like there has to be a better way to bring manufacturing to the US, or end fentanyl, or whatever the goal is here.
 
Personally, I'm all over the place on my tariff opinions. Here are some of them:

-There will always be trade deficits. I'm a big consumer and so are most of my fellow Americans, plus we're rich enough to buy nice things, some of them will come from other countries. I don't need 50/50 balance of trade. IMO, Trump doesn't either, but as a harsh negotiator, its his starting point.

-Setting tariff rates based on trade deficit isn't the right way. Reciprocal tariff rates are OK with me.

-Blue-collar, non stock-owning Americans were slowly getting screwed more than us rich people. There's a reason why rank & file union workers abandoned their "leaders" and backed the other side. Hyundai, Apple, etc...all moving manufacturing back to the US will be the start of a good trend, but painful initially.

-There are lots of trade barriers that aren't called tariffs, but still unfair to fair trade. VAT's, regulations, and flat-out protectionist laws. I grew up in an agriculture community. Ever year, Canada was coming up with a new way to block accepting American ag products. ALL of them centered on protecting Canadian farmers. They had a manufactured advantage for decades. Same with other countries. A painful reset is the only way I can see getting back to fair.

-One-sided tariffs against the US were not fair. So I don't shed tears that it's finally being called out. China is by far the worst since they additionally have manipulated their currency to prop up predatory trade AND have no problem with stealing intellectual property and ignoring patents.

-As the biggest economy, we will win a prolonged trade war. It will be painful short-term for all, including me. I also have lived my entire life benefitting from a government who spends more than they take in to sustain my lifestyle. It's time for me to feel a pinch so that my grandkids have a decent life.

-The guy who won did it by promising to do what he's doing now.
The voters have spoken, & its a risky game he's playing, but he's earned the right to move forward.
 
I think the uncertainty and poor messaging is adding fuel to the tanking fire.
That's the problem. The tariffs are bad enough but when you're constantly on and off with them and changing the numbers and having ChatGPT design your tariff plan, people might stop trusting you. Even if he dumped all of these tariffs today, what country in this world is going to look as us as a reliable trade partner? He might just fire them up again the next day.
 
Personally, I'm all over the place on my tariff opinions. Here are some of them:

-There will always be trade deficits. I'm a big consumer and so are most of my fellow Americans, plus we're rich enough to buy nice things, some of them will come from other countries. I don't need 50/50 balance of trade. IMO, Trump doesn't either, but as a harsh negotiator, its his starting point.
This is true.
-As the biggest economy, we will win a prolonged trade war. It will be painful short-term for all, including me. I also have lived my entire life benefitting from a government who spends more than they take in to sustain my lifestyle. It's time for me to feel a pinch so that my grandkids have a decent life.
I'm not sure that's true. We are the biggest economy right now but incredibly high, widespread tariffs on every country on earth, friend and foe does set up the possibility of other nations looking to align with China or simply saying "ok...we will just sell our stuff elsewhere." The US is a very large consumer but we are 350 million people. There are 7.6 billion other people in the world who can be sold to.
-The guy who won did it by promising to do what he's doing now. The voters have spoken, & its a risky game he's playing, but he's earned the right to move forward.
I'm not sure you could find too many voters who would say that they understood Trump promised to crash the markets 20%.

This is part of the problem. Simply saying "we're going to punish China with big, beautiful tariffs" at a campaign rally is going to generate a lot of "yea! Rah! Rah!" I'm not sure he ever truly laid out the risk of all of this to the voters because it's an enormous risk. Even some of the staunchest Republican allies of his were shocked at the scale and size of these tariffs with several calling for a pause.

I guess we will find out at the midterms.
 
Did I hear that the POTUS is now proposing tax deductibility for interest on auto loans for cars built in the U.S.?
Which cars quality. Ford? Hyundai? Honda? Are they American companies. So many parts of sourced as imported. I believe states the total on the window sticker.

Okay, so if they are assembled in the U.S. and they have source, as an example, 74% of parts in the U.S. then 74% of the interest is deductible. How is that for a win-win, and an incentive for more U.S. content over time.
 
Did I hear that the POTUS is now proposing tax deductibility for interest on auto loans for cars built in the U.S.?
Which cars quality. Ford? Hyundai? Honda? Are they American companies. So many parts of sourced as imported. I believe states the total on the window sticker.

Okay, so if they are assembled in the U.S. and they have source, as an example, 74% of parts in the U.S. then 74% of the interest is deductible. How is that for a win-win, and an incentive for more U.S. content over time.
I don’t think I’m against that idea per se but isn’t a tax deduction essentially a subsidy?
 
Did I hear that the POTUS is now proposing tax deductibility for interest on auto loans for cars built in the U.S.?
Which cars quality. Ford? Hyundai? Honda? Are they American companies. So many parts of sourced as imported. I believe states the total on the window sticker.

Okay, so if they are assembled in the U.S. and they have source, as an example, 74% of parts in the U.S. then 74% of the interest is deductible. How is that for a win-win, and an incentive for more U.S. content over time.
I'm against.
I want a simpler tax code, not more complex.
 
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.
 
Currency Manipulation per AI:

Currency manipulation, also known as currency intervention, refers to a government or central bank's deliberate actions to influence the value of their country's currency relative to other currencies, often to achieve specific economic goals.
 
China is the biggest offender of currency manipulation. I traded forex for a very long time

China is not our friend. Thats the country by the way. the businesses are no different than anyone else. trying to buy/sell products and make money. Chinese business leaders often have to walk a very thin line to avoid the weight of the party.

the problem is they have a govt that can intervene at any time in any way they want to.
 
Received our first tariff surcharge today on some frames, 7.5%, seems a bit early for that but maybe not?
Seems awful quick to arrive from overseas, then to Iowa & you must have ordered them prior to April 2.
You may be getting fleeced.

We just received a box of 40 today with no surcharges.

What country has a 7.5% rate?
 
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Seems awful quick to arrive from overseas, then to Iowa & you must have ordered them prior to April 2.
You may be getting fleeced.

We just received a box of 40 today with no surcharges.

What country has a 7.5% rate?
That's what I was thinking, why 7.5%? Looking through our mail we got another one with a tariff charge as well for frames.

charge.jpg
 
Its called ripping you off in anticipation of ripping you off.

The supermarkets do that here. Item on the shelf, purchased weeks before are raised in price 10-12%. So I asked my cousin who owned an operated a chain of markets in three states. He said:

They use the increased net profit to generate capital to buy the next inventory for which they anticipate increased invoice and that will be on the shelf at a higher price. Keeps the cash flow balanced. The rationalized reason is to avoid having the same item on the shelf at two different prices. This is illegal in some states, not mine.

A better choice is to simply mark the old inventory as "on sale". Also not legit considering it is the regular price.
 
Now that I've seen the first Tariff rate come through, and doing a quick most frames aren't made in the U.S., will you raise prices by 10-30% if you start to see those added on? Looks like a lot are made in Italy, and some major Lux brands like Ray Bay, Oakley are in China.

Next will be interesting to watch lab charges. Even though some of the lenses are surfaced in the US the original materials and lens pucks they use on digital freeform mostly come from other countries.
 
Whole Foods Market/Amazon even sleazier. A couple of items we buy routinely, noticed not only the price increase 25% but the container size and contents decreased by 18%. (Yes, I did the math.)

Amazon is worse. They'll have the identical item listed as from two or three different "companies" at two or three different prices. All from China, of course.
 
That's what I was thinking, why 7.5%? Looking through our mail we got another one with a tariff charge as well for frames.

View attachment 46712
I’d call them on it (in my pisssed off voice):
“I ordered these prior to 4/2/25. Also can you show me that they arrived in the US after the tariff?”

Guessing Iowa’s governor might be anxious to go after price-gougers.
 
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.
I have never watched a cable news show.
 
Remember the increased shipping costs several years ago. Gas prices etc went back to normal yet the fee remained
 
That's what I was thinking, why 7.5%? Looking through our mail we got another one with a tariff charge as well for frames.

View attachment 46712
I've already decided to send product back that arrives with a surcharge without notice. Will be paying close attention to the gougers and will rearrange the frame boards accordingly. Have a large order from Milan stuck in Customs for a few days. Will see what that bill looks like when it arrives.
 
Well, well, right on command my lab just emailed that prices are going up 10% across the board. I can't handle all this winning.
 
Well, well, right on command my lab just emailed that prices are going up 10% across the board. I can't handle all this winning.
Don’t worry, John! Vision plans will immediately provide a 10% increase in reimbursement! #winning
 
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It's going to be really interesting to see how these posts age.
I might be wrong, but it really seems like the timeline might be too short to really see if anything comes from this and due to how partisan politics are I don't know if anyone would admit a big "win" because I'm not sure how you define success. This current administration itself hasn't specifically said what is success. We have averaged ~15% per year in the S&P the past 10 years, even with a global pandemic, we already had the best economy in the world by a mile, unemployment was low, and prices were relatively low compared to the other developed nations. So unless the S&P averages much higher over the next decade, if the economy somehow just rips past what it was doing before, and we have to start importing workers because we just have so many manufacturing jobs I guess we will count that as the payoff. I'm going to guess eventually tariffs for a list of certain countries will be lowered, but hard to know what impact that will have when a bunch of countries already had a free trade policy with the U.S.

And to be fair, if the other person had won the election and put in some policy that has never really been used and it starts to tank the markets, economy, and possibly dramatically raise prices I'm sure most of the folks on here would be very accepting and be fine when someone says "lets just see what happens, what do we got to lose?"
 
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Just received a letter from our lab saying due to tariffs they will be adding 12.5% to their list prices.

So the strategy is do you not charge for it for a bit, hoping this get resolves quickly. Or I guess at the bottom of invoices add a Government tariff charge?