The US government's decision to increase tariffs on Chinese goods, including medical supplies such as face masks, gloves, and syringes, has faced industry doubt as alternative suppliers emerge. The higher tariffs on medical gloves, syringes, and face masks from China are unlikely to make US producers more competitive, as other low-cost suppliers are expected to fill the gap. Chinese firms could reroute shipments via overseas supply chains, and suppliers from other countries such as Malaysia could seize this opportunity [e65331b6].
The tariffs on gloves are set to go into force in 2026, while the proposed duties on masks and syringes will take effect in August of this year. The US imported nearly $640 million in face masks, syringes, and gloves from China in 2023. China was the biggest exporter of medical-grade masks by volume in 2023, with an average selling price of $4.14 per kg, lower than rival exporter Malaysia's $5.5 selling price. Malaysia's Top Glove, the world's largest medical glove maker, expects the US tariffs to boost the prices of domestically produced gloves that have dropped below production costs due to competition from China. Some US producers argue that the most promising avenue for them would be Washington's intervention on the demand side, such as increasing purchases of US-made goods [e65331b6] [2043f095].
Critics argue that the US tariff policy is driven by politicians' concerns about the country's dependence on the Chinese industry. However, they claim that the tariffs are merely a political stunt that fails to address the real challenges facing the US industrial growth. The tariff measures are seen as counterproductive and detrimental to the competitiveness of US domestic industries, including the green transition in the automotive sector. Instead of improving the competitiveness of US carmakers and promoting the transition to cleaner energy, the tariffs create barriers and hinder cooperation with China's new energy industry [4bbc0e0b] [bb73f923] [2043f095] [e65331b6].
The US government's decision to increase tariffs on Chinese goods has sparked concerns about the country's protectionist practices and their impact on global trade. These anti-trade initiatives are seen as pushing the United States further away from the norms of free-trade-based protocols. Critics argue that protectionist practices can threaten the common interests of humanity and that strengthening cooperation and technological exchanges with China's industries would be a more effective approach to fostering economic growth and development [4bbc0e0b] [bb73f923] [2043f095] [e65331b6].
Despite the criticism, the higher tariffs on Chinese-made gloves are expected to benefit US and Malaysian glove manufacturers. The tariff increase could help level the price difference between domestically produced gloves and cheaper imports from China, boosting demand for US and Malaysian-made gloves. Malaysian companies such as Hartalega Holdings Bhd and Kossan Rubber Industries Bhd, who have competitive cost structures and have not been impacted by US Customs and Border Protection's withhold release orders, are expected to benefit from the anticipated trade diversions. Additionally, the tariff increase may lead to higher production costs for Chinese manufacturers, prompting US importers to seek alternatives in Malaysia and Thailand [86f8f379] [bb73f923] [2043f095] [e65331b6].
This move aligns with President Joe Biden's efforts to address unfair trade practices and protect American jobs and manufacturers [cf22c34f] [1a4e4a66] [86f8f379] [bb73f923] [2043f095] [e65331b6].