The list of tariffs from U.S. President Trump has been released, with Malaysia and Japan being the only two countries where tax rates will not only stay the same but will increase, even without including support for BRICS countries, which face an additional 10% penalty.
CIMB Investment Bank pointed out that Trump's new tariffs will officially take effect on August 1, covering 14 countries. Among these, tariffs have been reduced or remain unchanged for 12 countries, while the import tariffs for Malaysia and Japan will increase from 24% to 25%. China has not been included in this tariff list.
Trump has threatened to impose an additional 10% tariff on BRICS countries. Although Malaysia is not a BRICS member but merely a partner country, if the additional tariff is implemented, local product tariffs could reach 35%.
For local glove manufacturers, this undoubtedly brings a heavy blow. The report estimates that if a 35% tariff is imposed, the post-tax average selling price (ASP) of Malaysian gloves exported to the U.S. will increase from the current $20 to $22 per box to between $27 and $29.70.
In contrast, the tariffs faced by Chinese gloves are even higher, totaling 80% (50% imposed during the Biden era and an additional 30% under the latest Trump plan), resulting in a post-tax selling price estimated to reach $27 to $30.60 by 2025 (starting from $15 to $17). This means the price gap between Malaysian and Chinese gloves may narrow to just $1.
"If the U.S. does not adjust tariffs on China after August 10, Malaysian gloves will lose their price advantage, especially if...