Analysis-US tariffs on Chinese medical imports face industry doubt as alternative suppliers emerge

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SHANGHAI - Higher U.S. tariffs on medical gloves, syringes and face masks from China are unlikely to make U.S. producers more competitive, as other low-cost suppliers are expected to rush in to fill the gap, industry executives said.

Izhaky, who has a factory under construction in Baltimore to produce medical-grade gloves, also said U.S. producers need immediate help, not two years from now. 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 this year.

Eddie Phanichkul, co-founder of Lutema USA that opened a mask factory during the pandemic in San Diego, said that imposing a 25% tariff on masks only"sends a message". China's foreign minister has said the U.S. move to hike tariffs shows that some in the United States may be"losing their minds" and that instead of hindering China's development, it would inspire its 1.4 billion citizens to work harder.

"This presents an opportunity for us to regain market share previously lost to ... Chinese competitors during the price war in 2022," Top Glove said, adding it would have to prepare to restart more production lines to meet an increase in demand. One of President Joe Biden's first acts in office was an executive order directing federal agencies to increase purchases of U.S.-made goods and establishing a Made in America office to direct that process.

 

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