A Note on Tariffs
What to expect
Originally Published 21/04/2025 8:30am ACST
Updated 21/04/25 2:13pm ACST
What happened last time in the U.S.?
The Trump administration’s tariffs on Chinese imports—especially those implemented during 2018–2019—had a significant impact on a wide range of consumer goods that were primarily manufactured in China.
Trump imposed 25 percent tariffs on certain Chinese goods back then, but Lemax merchandise was not on the tariff list. Resellers posed the theoretical question to Lemax USA should the circumstances change.
According to a US-based reseller, Lemax responded that at least for the first year, the direct importers would pay the tariffs.
Lemax USA imports dozens and dozens of intermodal shipping containers each year, so they (Lemax USA) would absorb the cost because they already had an agreement with their customers concerning the cost of goods ordered.
In the USA however, many large Lemax resellers have the opportunity to import directly, and would pay the tariffs themselves. Then they would either charge higher prices to consumers, or they would bear the brunt of the tariffs that first year. Otherwise, they would lose business to the smaller resellers that buy their merchandise via Lemax USA in Boston.
Here’s how many resellers of similar products around the world (especially in the U.S.) responded to those increased tariffs:
1. Price Increases
Most retailers, especially in the U.S., were forced to raise prices to offset the higher costs of importing goods. Lemax items, which are already premium-priced collectibles, saw noticeable price jumps in some stores during this period.
2. Reduced Inventory or Selective Stocking
To manage risk and cost, some retailers reduced the volume or variety of Lemax items they ordered. Instead of carrying the full annual release, they focused on best-sellers or store exclusives that guaranteed better turnover.
3. Early Ordering and Bulk Shipping
Larger retailers and distributors attempted to get ahead of tariff hikes by placing orders earlier or bringing in more inventory before the tariff deadlines hit. Some also pooled shipments or used bonded warehouses to better manage customs costs.
4. Diversifying Product Sources
While Lemax manufacturing largely remains in China, some resellers began to diversify their seasonal offerings with products made in other countries or sourced from alternative brands less affected by tariffs.
5. Communication with Customers
Retailers often communicated the reasons for price hikes directly to their customer base—either via email newsletters, store signage, or social media—to maintain transparency and retain customer trust.
6. Tightening Margins or Absorbing Costs
Small or niche retailers—especially in competitive online markets—sometimes chose to absorb some of the extra cost to avoid alienating loyal collectors. This, of course, impacted profit margins.
What's happening this time?
As of now, Lemax (USA) has not issued any public statements regarding the impact of the Trump administration’s tariffs on Chinese imports or any adjustments to their wholesale pricing.
However, it’s important to note that the U.S. Customs and Border Protection implemented additional tariffs on imports from China, effective March 4 and March 7, 2025, under Presidential Executive Orders . These tariffs could potentially affect companies like Lemax Inc., which sources products from China.
US-based reseller “House of Holiday” emailed their customer base that due to a new 145% import tariff on Chinese goods, they are delaying 2025 Lemax pre-orders, but have limited pre-tariff stock arriving soon at lower prices. This reseller imports directly, and does not purchase directly from Lemax in Boston.
The joy of Holiday decorating connects us all, which is why your holiday celebrations mean so much to us. We are reaching out today about the challenging tariff situation affecting our beloved Lemax collection and other products from China, which now face a 145% import tariff. We have some bright news to share in the midst of this uncertainty: we were able to bring in a selection of Lemax pieces that arrived before the steep 145% tariffs took effect. While these don't include the new 2025 releases, they will be available on our website in the coming weeks at a much more reasonable price than what the full tariff would require. The new 2025 Lemax collection is ready and waiting in China, and we wish nothing more than to bring these beautiful pieces to your villages. We're watching for any positive changes that might make this possible without the dramatic price increases these tariffs would force upon us all. Your holiday traditions and the joy they bring your families are always at the heart of every decision we make, and what matters most to us is being transparent with you. This is why we haven't yet opened pre-orders for the 2025 Lemax collection. Thank you for being part of our House of Holiday family, no matter where you are across the country. We'll keep you updated as the situation evolves, and you are always welcome to contact us with any questions.
Whether Lemax USA passes the cost on to the domestic retailers depends on Lemax HQ policy.
It is thought that Lemax USA would have to eat the cost the first year because we retailers agreed to pay prices quoted when we placed the order.
Then, in year two and beyond, the tariff would likely cause prices to increase.
Here at home, Vivendi Marketing Pty Ltd, the exclusive wholesaler of Lemax products in Australia, has not issued any public statements regarding the impact of recent U.S. tariffs on Chinese imports on their wholesale pricing. Their official website and available communications do not mention any adjustments or concerns related to these tariffs.
It’s important to note that the tariffs imposed by the U.S. government primarily affect goods entering the United States. Since Vivendi Marketing operates within Australia, these specific U.S. tariffs may not directly influence their operations or pricing structures. However, global supply chain dynamics can be complex, and indirect effects are possible, although unlikely.
Australian resellers are required to place their Lemax orders for the upcoming season at the beginning of the year, with a 30% deposit for their orders.
Under Australian Consumer Law (ACL), wholesalers generally cannot increase prices after a customer has already paid for goods, unless:
- There’s a clear agreement or contract that allows price changes
If a wholesaler’s terms and conditions (accepted by the buyer at the time of sale) state that prices are subject to change, and the customer agreed to those terms, then a price increase may be permitted — but only before goods are delivered.
Price increases after payment with no prior agreement are not allowed
If a customer has paid for goods in full and the wholesaler tries to raise the price after the transaction, this would likely be considered misleading or deceptive conduct under ACL — and possibly a breach of contract.
Key ACL Principles:
- Misleading or deceptive conduct (Section 18): It’s illegal to promise goods at a certain price, take payment, and then raise the price.
- False or misleading representations about price (Section 29): Once a price is offered and accepted with payment, it’s binding.
- Unfair contract terms (Sections 23–28): If a clause allowing price changes is deemed unfair (e.g., one-sided or not transparent), it may be void.
Given that these orders have been placed and paid for, it would be reasonable to expect that any cost increases imposed by Lemax Inc on a global scale would not affect current orders.
The Last Lamplight
We, at The Last Lamplight, buy retired Lemax from resellers all over the world. We have already seen instances where some of our USA resellers have increased pricing without explanation (~5%). Others, like House of Holiday, have made public statements of their intentions.
As a result of uncertainty around prices, we have reduced our overseas listing of Lemax products from only those resellers we can rely on to keep pricing stable.
We are also closely watching the effect on international shipping costs and will ensure our pricing structures to you remain up-to-date and reasonable.
While some product listings may be reduced, please always feel welcome to contact us if there’s a particular piece you’re looking for.