- The latest US-China tariff rollback may not favour Malaysia glove makers, in our view, as it could delay purchasing decisions due to ongoing uncertainty.
Risk outweighs potential returns.
- We believe a reversion to the previous tariff schedule on China gloves remains possible, depending on the outcome of ongoing negotiations. At the same time, new capacity from China glove makers in Southeast Asia, expected from 2026, poses a growing supply risk.
- - Read this at SGinvestors.io -
US and China to slash tariffs for 90 days.
- The US and China have reached a surprise agreement to temporarily reduce reciprocal tariffs for 90 days. Under the deal announced on 12 May 2025, the US will cut the additional tariffs imposed on China imports in Apr 2025 from 145% to 30%, while China will lower its tariffs on US goods from 125% to 10%.
- - Read this at SGinvestors.io -
Uncertainty arises from latest 90-days tariff pause.
- The tariff on China glove makers remains unclear. Industry sources suggest an 80% rate, combining the 30% reciprocal tariff (for 90 days) and earlier Biden-imposed tariffs. However, this is unconfirmed, as 30% may not apply to goods with pre-existing high tariffs. The effective rate could instead be the original Biden-imposed rate of 50%.
- The US tariffs on Malaysia gloves are at 10% from 9 Apr–8 Jul 2025, then 24% thereafter.
Time to take a stand – sector downgrade to NEGATIVE.
- Read more at SGinvestors.io.
