- The precipitous tariff hike announced by US authorities on China’s medical-grade gloves beginning 2026 is poised to revitalise investors’ sentiment on the Malaysian glove sector.
- While the sector’s recovery plot continues to thicken beyond post-pandemic eclipsing earnings and demand moderation, we anticipate domestic glovemakers to progressively reclaim market share from China, sustaining concrete ASP trajectories and future margin upticks.
- - Read this at SGinvestors.io -
US increasing tariff on China medical-grade gloves in 2026 amid escalating trade tension.
- Yesterday, US President Joe Biden unveiled steep tariff increases on an array of Chinese imports under Section 301 of the Trade Act of 1974. This includes a higher tariff of 25% (from current 7.5%) on China’s rubber medical and surgical gloves’ exports into the US beginning 2026.
Structural change likely altering nitrile gloves’ demand landscapes.
- - Read this at SGinvestors.io -
- While China players predominantly produces PVC vinyl and nitrile gloves (>85% of total sales in 2023), we see meaningful nitrile gloves demand flowing back to Malaysian manufacturers after the tariff hike is imposed.
US tariffs hike a cherry on the cake.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jack Goh UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-05-15
More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector
Read also UOB's most recent report:
2024-06-20 Top Glove - 3QFY24 Turning Over A New Leaf .
Previous report by UOB:
2024-03-21 Top Glove - A Setback In 2QFY24 With Silver Linings .
Price targets by 2 other brokers at Top Glove Target Prices.
Listing of research reports at Top Glove Analyst Reports.
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