All in One Controller
LED Sending Card/Box
LED Receiving Card
ASYNCHRONOUSI MULTI-MEDIA PLAYER
HUB Card
Control System Accessories
Universal Video Processor
4K LED Video Processor
8K LED Video Processor
Video Splicer
Video Splitter
ConsolelSwitcher
I = 1A-10A
U = 3.8VDC
Common Cathode
PFC Power Supply
Dual Outputs Series
DC — DC Series
High Line Input Series
INDOOR LED SCREEN
OUTDOOR LED SCREEN
CREATIVE & CUSTOMIZED LED DISPLAY
INDOOR LED MODULE
OUTDOOR LED MODULE
CUSTOMIZED LED MODULE
Customized Cabinet | Structure
Maintenance Tool
Power Distribution Box
Diagnostic Tools
OTHERS
Data & Power Cable
Cooling Fan
Flight Case
How Should the LED Display Industry Respond to the New Landscape After the China-U.S. Tariff Rollback Exceeding 100%?
On May 12, China and the United States jointly issued the China-U.S. Geneva Economic and Trade Talks Joint Statement, in which both sides reached several positive agreements. This high-level meeting marked substantial progress in bilateral trade relations, leading to a significant reduction in tariffs. The United States canceled a total of 91% of the additional tariffs it had previously imposed, and China reciprocated by removing 91% of its retaliatory tariffs. Furthermore, the U.S. suspended the implementation of an additional 24% in “reciprocal tariffs,” to which China responded by halting the same rate of countermeasures.
Against the backdrop of a tariff rollback exceeding 100% from both sides, the LED display application industry is stepping into a new era of transformation and opportunity. This policy shift not only directly reduces operational costs for businesses but also injects fresh momentum into the growth and innovation of the LED display sector.
Domestic Market: Unlocking Internal Demand and Driving Industrial Upgrades
The tariff reductions are expected to drive technological upgrades and application expansion within the LED display industry, unleashing domestic demand and accelerating penetration in sectors such as smart cities, commercial displays, ultra-high-definition (UHD) video, and cultural tourism. For instance, while China’s LED display market reached a size of RMB 49.5 billion in 2024—a year-over-year decline of 2.56%—the lowered tariffs may help reverse this trend in 2025, shifting back to positive growth and potentially boosting momentum. Domestic manufacturers can seize this opportunity to deepen collaboration with local engineering and integration partners, establishing flagship projects in areas like traffic safety and surveillance, and building differentiated competitiveness through a “technology + application scenario” approach.
International Market: Restructuring Demand and Rebalancing Supply Chains
As one of China’s key export destinations for LED display products, the U.S. market will benefit significantly from the easing of its tariff policies. The U.S. accounts for approximately 11–14% of China’s overseas LED display exports and is characterized by high-value orders and strong profit margins. With tariffs lowered, Chinese LED display manufacturers are expected to gain a major competitive advantage, especially in the mid- to high-end segments.
This adjustment will also catalyze a global supply chain rebalance. Emerging markets such as Southeast Asia, the Middle East, and Africa are becoming new growth engines for LED display enterprises. In particular, many Chinese companies have already established production bases in Southeast Asia to bypass tariff barriers. With tariffs easing, Chinese LED display manufacturers now have the opportunity to reevaluate their global production strategies and optimize the “China R&D + overseas manufacturing” model.
Foreign Trade Exports: Advancing Cost Optimization and Market Diversification
For LED display exporters, the tariff rollback is a significant boost. First, lower export costs directly enhance price competitiveness. Take, for example, LED rental screens exported to the U.S. for stage use—previously, high tariffs inflated the product’s price, affecting deal closures. With tariffs lowered, pricing becomes more attractive, potentially increasing export order volumes from U.S. clients.
Second, rising trade volumes may encourage manufacturers to scale up production and improve operational efficiency. Some LED exporters may add production lines and hire additional workers to meet growing demand.
However, exporters must remain vigilant. Trade policy changes often come with uncertainty. While current conditions are favorable, future risks such as non-tariff barriers or currency fluctuations may arise. Companies need to monitor global trade dynamics closely, manage production and orders prudently, and strengthen communication with customers and suppliers to ensure sustainable export expansion while mitigating potential risks.
At the same time, a diversified market strategy should be pursued. Although the U.S. market is regaining prominence, overreliance on a single market remains risky. Enterprises should adopt a hybrid strategy of “deep cultivation of core markets + development of emerging markets” to balance growth and risk. Meanwhile, domestic demand opportunities must not be overlooked. Companies can leverage national initiatives like the Belt and Road and new infrastructure projects to drive dual circulation between domestic and international markets.
Accelerating Technological Innovation: Shifting from Cost-Based to Value-Based Competition
The easing of tariffs provides LED display companies with a valuable window—both financially and strategically—for technological innovation. Chinese manufacturers have already made breakthroughs in areas such as MIP, COB, and Mini/Micro LED, driving the industry toward more diversified and ecosystem-based development.
The policy change is also expected to accelerate industry consolidation, channeling resources toward leading players. Smaller firms, lacking the technical depth and global reach, may face mounting pressure. In contrast, industry leaders can leverage mergers, acquisitions, and strategic partnerships to integrate upstream and downstream resources, build end-to-end value chains, and maintain stable margins amid market shifts.
Post-tariff reductions, market competition will increasingly focus on product value and customer experience. LED display companies must differentiate through innovation and enhanced service offerings. Brand building will also take center stage. Chinese manufacturers need to evolve from OEMs to brand operators—growing visibility by participating in international trade shows, sponsoring global events, and establishing a stronger global presence.
Notably, the LED display industry still faces a complex development landscape. To capitalize on new opportunities, companies must act on multiple fronts. First, they must strengthen R&D, increase investment, attract top talent, and build proprietary innovation systems—collaborating with universities and research institutes to develop core display technologies and improve product quality. Second, they should optimize supply chain management by establishing stable, long-term relationships with suppliers to ensure material availability and cost control. Additionally, expanding sales channels—particularly through e-commerce platforms and social media—will help capture global market share.
Finally, companies should proactively participate in shaping industry standards. Gaining a voice in standardization efforts will raise industry entry barriers and help safeguard market leadership positions.
Conclusion
The mutual rollback of over 100% in tariffs between China and the U.S. presents a significant opportunity for the LED display application industry. To thrive in this new landscape of both opportunities and challenges, companies must embrace change, drive innovation, and actively adapt. Only by doing so can they ensure long-term, sustainable, and healthy development in a rapidly evolving global market.
