These are turbulent times for global trade. On April 9, US President Donald Trump disrupted a system that had been built over decades. Since then, US trade policies have been shifting almost daily. So how should the digital signage industry respond? invidis spoke with Tobias Lang, CEO of Lang AG and Treasurer at Avixa, to get his take.
Tariffs: “Stay Calm – But Keep Making Decisions”
For the past two decades, the global economy has run on a simple formula: the US develops ideas, Asia manufactures them, and Europe buys the goods. But that model is changing. Former US President Donald Trump threw a wrench into the system with steep tariffs, and now companies are being forced to rethink how they operate – carefully, but constantly.
A lot of what used to be predictable is now up in the air. Long-term planning, for one, has taken a hit. Even if the US pauses tariffs for a few months, the uncertainty remains. “Waiting 90 days won’t fix anything,” says Tobias Lang, CEO of Lang AG and Treasurer at Avixa, in an interview with invidis. “Business leaders need to realize there’s no going back to stability.”
Europe steps in as trade shifts
While some of the toughest tariffs – over 100 percent on electronics – are currently on hold, trade between China and the US is still way down. That has pushed manufacturers to focus on Europe and other open markets.
Chinese factories need to keep moving, but without storage space, they have to ship products quickly. Since it takes about six weeks to get goods from East Asia to Europe, we can expect a wave of digital signage hardware to land by mid-June. “First we will see prices drop, then the European market will likely hit saturation,” Lang predicts.
SMD LEDs under pressure
SMD LEDs are feeling the squeeze. Unlike COB, which needs to come from the same production batch and is typically made to order, SMD LEDs are more often stocked. That makes them more vulnerable to price drops. Lang believes newer LED manufacturers –especially in the US – will be hit hardest. His company, Lang AG, invests millions every year in rental hardware and is keeping a close watch on the shifts.
Getting creative in the US
Despite all this, the US market still wants LED solutions. But with tariffs already at 20 percent – and possibly going higher – everyone from suppliers to end users will need to get creative.
One workaround? Long-term rentals. Some companies are now renting ProAV hardware that’s temporarily brought into the US, often by trucking it in and out through Canada once a year. A clever approach for the event industry, but less practical for permanent installations.
Others are bundling hardware with software and services, which helps reduce tariff costs. Customs experts say this approach can shave off 15–20 percent of the dutiable value. This is one more reason why managed services are getting more attention.
Change takes time – but flexibility helps
Decades-old supply chains cannot be rebuilt overnight. No one expects LED or display factories to suddenly pop up in the US. But companies that stay flexible and move with the changes will come out ahead. “ProAV and digital signage companies should watch the market closely, stay calm – but keep making decisions,” Lang advises. “Sitting still isn’t an option.”
India on the rise
One country that’s clearly benefiting from the shift is India. The move away from Chinese manufacturing is picking up speed, and “Made in India” is becoming more important than ever in the electronics world.
