By Stuart Condie
SYDNEY--Australia's Ansell said it plans to offset the effects of higher U.S. tariffs on its personal-protective-equipment products by increasing the prices it charges its customers.
The approach is the same one Ansell took when the U.S. imposed tariffs in China in 2018. Those higher costs didn't prompt Ansell to switch production to the U.S., and the company isn't looking to do so now.
"U.S. industry manufacturing capacity for comparable hand and body protection products is negligible," Ansell said in a market filing.
Ansell makes gloves, suits and other items in 14 facilities across nine countries, as well as calling on a network of third-party suppliers. A majority of its products are made in Malaysia, Sri Lanka, Thailand, Vietnam and China.
President Trump's tariffs include 24% on goods from Malaysia, 36% on Thailand, and 44% on Sri Lanka. The tariff announcement sparked a 14% drop in Ansell's shares on Thursday, making the stock the worst hit on Australia's benchmark index.
About 43% of Ansell's revenue is generated in the U.S. The company said it has already spoken with customers about its plans.
Speaking in February, Chief Executive Neil Salmon said that Ansell had been able to pass through earlier tariff costs to customers, giving it confidence that it could do so again. On Friday, it maintained its earnings guidance for the 12 months through June.
In the longer-term, Ansell said it could respond to changes in what it called the relative attractiveness of manufacturing locations across its network. Ansell has smaller facilities in countries including Portugal, Lithuania and Brazil.
In February, Salmon, who served as Ansell's chief financial officer and then head of its industrial unit when the U.S. previously imposed higher tariffs on China, said Ansell could redirect some supply to the U.S. from countries subject to lower rates.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
April 03, 2025 19:04 ET (23:04 GMT)
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