Gloved up for fluid tariffs

As the United States considers imposing tariffs on pharmaceutical imports worth US$200bil, Malaysian medical product manufacturers are bracing for the potential impact of US President Donald Trump’s announcement on the local industry.

According to the Health Ministry, Malaysia’s medical device exports to the United States were valued at RM13.69bil (US$3.07bil) in 2024, making up 36.97% of the country’s total medical device exports, which stood at RM37.03bil.

Meanwhile, pharmaceutical exports to the United States were worth RM560mil, or 18.48% of

Malaysia’s total pharmaceutical exports, which amounted to RM3.03bil.

Malaysian Medical Device Manufacturers Association (Perantim) president Johari Abu Kasim said the impacts were already felt when Trump announced the 24% reciprocal tariffs against Malaysia earlier this month.

As a knee-jerk reaction to this announcement, there were some cancellation of orders from US-based importers.

Johari said medical grade gloves, catheters and syringes are some key products exported to the United States.

“We also export indirectly through Singapore.

“This accounts for about 23% to 25%,” he said.

Johari acknowledged that the tariff threat has left some exporters jittery as the situation remains fluid and uncertain.

However, he sees a silver lining, noting that the 145% tariff rate on China would make Malaysian products more competitively priced.

Johari said some Perantim members are also looking at the possibility of setting up satellite production plants in the United States so that they can produce there and supply the American domestic market.

As a mitigation measure, medical device manufacturers are also looking for new markets, he said.

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