Kenanga Research said the 24% tariff is expected to raise Malaysian glove makers' ASPs.
KUALA LUMPUR: Reciprocal tariff imposition by the United States may be neutral to positive for Malaysian glove makers in the short term.
According to Kenanga Research, this is the case when compared to the more than 100% tariffs imposed on China medical gloves in 2025-2026.
It noted the pricing gap between Malaysia and China producers for US exports is still wide. “Hence, there should be no changes to the current industry landscape for the US market,” the research house said.
The reciprocal tariff hit across the board including countries such as Thailand and Indonesia which may blunt its net effect on glovemakers located in these countries as well.
“On China, the latest additional 34% tariff imposition is in addition to the 60% presently imposed on China’s rubber medical and surgical glove exports into the United States,” Kenanga Research noted.
For illustration purposes, it said a more than 100% tariff hike is expected to raise China-based glove producers’ average selling prices (ASP) to US$30-US$32 per thousand pieces from an assumed base case ASP at US$15 per thousand pieces.
However, it noted a 24% tariff is expected to raise Malaysian glove makers' ASPs of between US$22 and US$24 per thousand pieces from an assumed US$18 to US$20 per thousand pieces which is a steep 25%-32% discount compared the Chinese alternative.
Glove makers traded on Bursa Malaysia such as Hartalega Holdings Bhd
and Top Glove Corp Bhd rose in active trading yesterday.
“The net effect is positive for Malaysia as any volume loss in non-US markets can be offset by higher demand from the United States, considering that the United States historically accounts for 35% to 40% of Malaysia’s total glove volume.
“We believe that given the current geopolitical tensions between the United States and China, and the tariff hike, American buyers are less likely to source most of their supplies from China,” it said.
“Some buyers have begun shifting their purchases to Malaysia as a risk management strategy, which could potentially benefit Malaysian players including Hartalega, Kossan Rubber Industries Bhd, Top Glove and Supermax Corp Bhd,” it added.
