Increased US Tariffs on China-Made Goods Create Opportunity for Malaysian Glove Producers

The latest US tariffs on Chinese imports could significantly benefit Malaysia’s glove manufacturers, allowing them to secure a larger share of the American market. As the world’s leading rubber glove producer, Malaysia stands to gain an additional 10 per cent of the US medical glove sector, analysts suggest.

On 4 February, a new trade policy implemented by President Donald Trump—just weeks after his return to office—introduced a 10 per cent tariff on all Chinese imports, including medical gloves, electronics, and apparel. This move follows a prior decision under former President Joe Biden’s administration, which raised tariffs on Chinese medical and surgical gloves to 50 per cent in January 2025, with a planned increase to 100 per cent in 2026.

As a result of the latest tariff adjustments, Chinese glove producers will now face a 60 per cent levy in 2025, rising to 110 per cent the following year. These surging costs are expected to drive US buyers towards Malaysian suppliers, said UOB Kay Hian analyst Jack Goh. He estimates that Malaysia’s glove producers could capture at least 10 per cent more of the US medical glove market.

According to the Malaysian Rubber Glove Manufacturers Association, Malaysia accounted for 45 per cent of global rubber glove production in 2024, followed by China at 28 per cent. By December 2024, Chinese gloves made up 42 per cent of US imports, while Malaysia’s share stood at 44 per cent. With US demand projected to rise to between 90 billion and 100 billion gloves annually in 2025—up from 70 billion to 75 billion in 2023—Malaysian manufacturers are well-positioned for growth.

Industry leader Top Glove expects to gain at least a quarter of China’s market share in the US, with 20 per cent of its total exports already directed there. Market analysts at RHB Research estimate that for every 10 per cent increase in Malaysia’s US market share, the sector could generate an additional US$55 million to US$56 million in annual revenue.

Even before the latest tariff announcement, Malaysian glove producers were experiencing an uptick in orders from the US. Top Glove, which holds a 26 per cent share of the global market, recently returned to profitability, reporting RM5.5 million (S$1.7 million) in net earnings for the first fiscal quarter ending 30 November 2024—reversing a net loss of RM57.7 million in the same period the previous year.

The Malaysian glove industry is projected to experience strong demand recovery in 2025, driven by restocking efforts and rising average selling prices, according to Kenanga Research. The firm anticipates global glove consumption to rise by 12 per cent to 368 billion pieces in 2025.

As pricing pressures mount, Malaysian producers are expected to retain a competitive advantage over their Chinese counterparts. Before the previous 50 per cent tariff increase in September 2024, Chinese gloves were priced at approximately US$15 per carton of 1,000 gloves. Following the latest 10 per cent tariff hike, this price could rise to US$25.60 per carton. In contrast, Malaysian gloves—previously sold for US$17 to US$18 per carton—are currently priced at around US$20 to US$21 per carton.

Despite Malaysia’s current advantage, analysts warn that this windfall could be temporary. Former President Trump recently outlined plans for reciprocal tariffs on US trading partners, which could eventually impact Malaysian exporters. Additionally, there is concern that Chinese manufacturers might shift production to Southeast Asia to bypass tariffs, potentially leading to stricter trade measures against Malaysian exports.

To mitigate potential disruptions, Malaysian businesses are being urged to diversify their sourcing strategies and optimise supply chains. According to Socio Economic Research Centre executive director Lee Heng Guie, companies should implement proactive logistics and stock management strategies to navigate evolving trade policies.

If the US were to extend tariff measures to Malaysian glove manufacturers, American consumers would likely bear the brunt of rising costs, as over 85 per cent of US medical glove imports currently come from Malaysia and China combined.