The Vision Council Briefs Members on Policy Changes Amid Tariff Reduction

[Gretchyn Bailey]

Alexandria, VA – May 12, 2025 –The Vision Council issued a statement on the U.S. and China’s mutual decision to temporarily reduce tariffs on billions of dollars’ worth of goods. The agreement, announced the morning of May 12, slashes tariffs on U.S. and Chinese imports for a 90-day period, offering short-term relief to industries affected by the long-standing trade conflict, including the optical and vision care sectors.

Under the agreement, the United States will lower its “reciprocal” tariff assessed against Chinese origin materials from 125% to 10%, while China will reduce its “reciprocal” tariff likewise on U.S. origin exports from 125% to 10%. The tariff reductions are effective May 14 and are set to expire in August unless extended through additional negotiations. These reductions do not impact previous product-specific duties (variable), Section 301 tariffs (ranging from 7.5% to 25%), or China IEEPA duties (20%).

According to a Fact Sheet issued by the White House, beginning May 14, importers of Chinese-origin goods will be subject to the following layers of duties:

1. Regular Most Favored Nation (MFN) duties, which vary by product.
2. Section 301 duties, applied in response to unfair trade practices, which range from 7.5% to 25%.
3. “China IEEPA fentanyl” duties, imposed in March at 20%, intended to address national security concerns related to the fentanyl crisis. This 20% is assessed in addition to any MFN or Section 301 duties.
4. A 10% “reciprocal duty”, applicable to all Chinese-origin goods. This rate is temporary and will increase to 34% after 90 days unless further action is taken. This duty stacks on top of the existing MFN, Section 301, and fentanyl-related duties.

Using plastic spectacle frames as an example, the combined tariff burden for the next 90 days would be approximately 40%, down from the previously assessed 155%—a significant reduction, but still a historically high rate. If no additional agreements are reached, the reciprocal duty will rise to 34% after the 90-day period, bringing the total tariff burden back up to approximately 64%.

On the export side, U.S.-origin goods shipped to China will now face a 10% reciprocal Chinese tariff, in addition to any existing import duties imposed by Chinese authorities.

The Vision Council will update its website and tariff tables to reflect these changes, which take effect May 14, 2025.

“This temporary reprieve is a welcome development for our members,” said Ashley Mills, CEO of The Vision Council. “Many of the products impacted by these tariffs – such as frames, lenses, and essential manufacturing components – are integral to the U.S. vision industry. While the 90-day agreement provides some breathing room, uncertainty remains, and we continue to advocate for long-term policy solutions.”

The Vision Council’s support for members includes:

• A dedicated tariff resource hub with latest updates, and a Tariff Dashboard to simulate cost impacts and access real-time import data.
• Ongoing policy monitoring and direct advocacy efforts in Washington to secure relief and exemptions where possible.
• Regular webinars and briefings with trade experts and counsel.

“While today’s announcement is a step in the right direction, we encourage our members to remain engaged and informed as we continue navigating a complex trade environment,” added Mills.

For more information or to access The Vision Council’s tariff resources, visit thevisioncouncil.org or contact cpillsbury@thevisioncouncil.org.

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About The Vision Council
The Vision Council brings the power of sight to all through education, government relations, research, and technical standards. A leading advocate for the optical industry, the association positions its members to deliver the eyewear and eyecare people need to look and feel their best. Vital to health, independence, and safety, better vision leads to better lives.

 

[Jeffrey Kiener]

Everyone knee-jerks.

Let's see if the companies that have raised prices will now lower them. FAT CHANCE. The price increases will stay.

At least those who have "surcharges" MAY suspend them awhile.

 

[Joe DiGiorgio O.D.]

I just received a letter this morning from Continental, one of our budget lines. I should post a copy. They are announcing tariff adjustments as a phase in starting May 15, June & July.

They are calling it a "Shared Tariff Charge"

 

[AdminWolf]

I just received a letter this morning from Continental, one of our budget lines. I should post a copy. They are announcing tariff adjustments as a phase in starting May 15, June & July.

They are calling it a "Shared Tariff Charge"

Post a copy if you'd like - the only way anyone will get clarity on how much these new taxes are costing folks vs. hidden gouging is by understanding what the increases are.

(At least by posting here, you're putting up a public record to compare against, when the tariffs are finally repealed, you can see if the prices go down commensurately.)

 

[Joe DiGiorgio O.D.]

Ecco qua:

 

[AdminWolf]

Ecco qua:


View attachment 46980

I like the way they did this -- they clearly show you how much of the increase is due to the tariff, and show you that they are actually sharing the pain of eating margin with you. So you're in it together ...

 

[Joe DiGiorgio O.D.]

It is sort of like a fuel increase that causes a price increase. vs putting on a fuel surcharge, which is very transparent, and can later be cleanly removed as the fuel prices go down.

I believe that Luxo has put in a price increase because of the impending tariffs, but what are they changes that they will remove that price increase?

 

[AdminWolf]

It is sort of like a fuel increase that causes a price increase. vs putting on a fuel surcharge, which is very transparent, and can later be cleanly removed as the fuel prices go down.

I hope more suppliers do it that way, so it is very clear as to how much of the increase is due to new taxes vs. inflation vs. plain ol' greed.

It is sometimes tough to be so tranparent though with more complex goods.

For instance, my understanding is that Subaru is going to raise the prices of all their cars $1,500 -- regardless of where they are built (Outbacks are built in Indiana, Crosstreks are built in Japan.) Effectively the US cars are subsidizing the tariff on the Japanese-built ones, which takes some of the sting out of the price increase on the cheaper Crosstreks.)

Since frames and lenses are simpler products, i'd imagine less financial chicanery like that would be necessary.

 

[Joe DiGiorgio O.D.]

The same has been going on with prescription medications.

Here is a product that is sold in the U.S. at this price. A trusted friend tells me they are selling the same product in the U.K. under a different name for about $30 cash. Can this really be happening to American consumers?

My friends in Italy can get Rx meds very inexpensively. We also know that we can buy products in Canada for much less then our cash price in the U.S. Is their government underwriting the costs, or is it financial chicanery?

 

[Michael Barris]

The same has been going on with prescription medications.

Here is a product that is sold in the U.S. at this price. A trusted friend tells me they are selling the same product in the U.K. under a different name for about $30 cash. Can this really be happening to American consumers?

My friends in Italy can get Rx meds very inexpensively. We also know that we can buy products in Canada for much less then our cash price in the U.S. Is their government underwriting the costs, or is it financial chicanery?


View attachment 46982

The New York Times, on Monday, 12 May 2025, reports that President Trump is requesting drug companies to reduce their prices.

 

[Jeffrey Kiener]

Can't blame a guy for trying, but I can't understand how an E.O. can change things long-term.

They may have to bend a little, but with their lobbying power, it may only be until the next non-Trumpian Populist gets into office...

 

[Joe DiGiorgio O.D.]

Can't blame a guy for trying, but I can't understand how an E.O. can change things long-term.

They may have to bend a little, but with their lobbying power, it may only be until the next non-Trumpian Populist gets into office...

Yes, very strong very wealthy lobby force. And you can take that to the bank.

 

[Joe DiGiorgio O.D.]

just got another. Are they going to back these off if there are not tariffs?

 

[Jeffrey Kiener]

Hopefully, and I do hope, they use the windfall (when the tariffs come off) to change their manufacturing to a better, less Chinese place.

 

[Jeff Guthrie]

The same has been going on with prescription medications.

Here is a product that is sold in the U.S. at this price. A trusted friend tells me they are selling the same product in the U.K. under a different name for about $30 cash. Can this really be happening to American consumers?

My friends in Italy can get Rx meds very inexpensively. We also know that we can buy products in Canada for much less then our cash price in the U.S. Is their government underwriting the costs, or is it financial chicanery?


View attachment 46982

The Patented Medicine Prices Review Board (PMPRB) is an independent, quasi-judicial body in Canada that reviews the prices of patented medicines sold in the country. Its primary goal is to ensure that these prices are not excessive and to inform Canadians about pharmaceutical trends. The PMPRB also operates at arm's length from the Minister of Health, meaning it is not directly controlled by the government.

Key Functions of the PMPRB:

• Price Review:
  The PMPRB reviews the prices charged by rights holders (patent holders) for patented medicines.
  
  
• Price Reduction:
  The PMPRB works with rights holders to achieve voluntary price reductions where appropriate.
  
  
• Excess Revenue:
  The PMPRB ensures that rights holders reduce their prices and potentially pay back excess revenues if deemed excessive.
  
  
• Reporting:
  The PMPRB publishes reports on pharmaceutical price trends, cost, and utilization data to support informed decision-making in pricing, purchasing, and reimbursement.
  
  
• Transparency:
  The PMPRB is required to submit annual reports to Parliament and produces proactive disclosure reports on its financial and human resource operations.
  
  
• Consultation:
  The PMPRB consults with stakeholders on changes to its guidelines, which are non-binding but provide guidance on price determination.