Signify Considers Moving Production Due to Potential U.S. Tariffs

By Toby Sterling
AMSTERDAM (Reuters) – Lighting maker Signify is exploring options to relocate some production outside of China amid possible new U.S. tariffs, according to CEO Eric Rondolat on Friday.

As the world’s largest lighting manufacturer, Signify is evaluating production locations in India, Indonesia, and adjustments in Mexico following the company's third quarter earnings report.

Former U.S. President Donald Trump has proposed tariffs as high as 60% on Chinese imports if he wins again on November 5.

Rondolat mentioned that Signify has developed contingency plans in light of potential political changes: "We have a… plan A, plan B, and plan C, depending on the political decisions."

The company had already faced challenges from tariffs imposed during Trump’s first term, affecting about 40% of their sales in the Americas. Currently, they estimate tariffs impact them by about 20-25%.

In reaction to earlier tariffs, Signify considered U.S. and Mexican sourcing, but limited those efforts due to the efficiency of Chinese production.

"Now things may change and we are preparing ourselves," Rondolat stated, noting the company is better positioned than during the first round of tariffs.

He anticipates the company and the wider industry can adapt to new tariffs within 6-9 months.

Following the earnings report, Signify's stock rose 9.4%, buoyed by margin recoveries after cost reductions, even amidst ongoing economic challenges in Europe and China.