Emerald Professional Protection Products Reports - China Tariffs Start to Bite Infection Control Industry

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As everyone is no doubt aware by now, the US trade administration has imposed additional tariffs on a wide range of disposable products from China. As older inventories carried by importers begin to run out, users of infection control and hygiene products are getting serious sticker shock. Most costs have gone up by 15-25%. These single-use essentials are not easily manufactured elsewhere outside of China as they are labor intensive and low margin items.

“We're dealing with these additional costs and tariffs, and we're doing our best to absorb as much of the burden as possible to prevent it from effecting our customers,” stated Account Manager Ashley Moore.

There is rising concern that users are going to cut back on disposable protection products in several areas and take dangerous, unnecessary risks. Risks like using products for a longer duration than intended or simply not using them at all. Will users take the precautions they are supposed to? Only time will tell.

We are not talking luxury items here, but essential infection control products. Many of these items are everyday items:

Food Service: Items such as beard covers, disposable inspection coats, jackets, hairnets, bouffant caps, paper packaging material, plastics and foils used to store and protect food, shrink film, plastic food containers, liners and many other items now attracting a 25% tariff.

Industrial: Respirators, protective clothing and safety shoes have been impacted.

Medical: Table examination paper, respirators, isolation gowns, protective clothing, surgical towels, and a myriad of other disposable products have attracted a 15% tariff.

Safety: Respirators, protective clothing, coveralls, everything from paint shop respirators to asbestos removal clothing. All have been impacted.

Importers of these products will end up absorbing 5 to 10% of the tariffs but the rest gets passed on to the distributor who in turn is forced to pass it along the consumer. The softening of the Chinese yuan versus the U.S. dollar has partially offset the increased costs associated with the tariffs. Profit margins will get squeezed, cost of goods will increase. We will continue to keep our customers informed as the situation remains very fluid.

In order to keep up with the latest news on tariffs affecting the disposable protection products industry please be sure to visit the Emerald Professional Products website, https://emeraldppp.com.

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Patrick McCrann

Ashley Moore
@EmeraldPPP
since: 08/2012
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