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Category: Automotive & Transportation

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Q2 Market Update: Tariffs and Production Costs

Q2 Market Update: Production Costs

Third in a series

Our Q2 Market Update covers the potential impact of tariffs, but we were never under any illusion that it would age well with all the rapid news and changes.  As of mid-May, while many reciprocal tariffs remain on hold, last week, the US and China announced a reduction in tariffs, with US tariffs on China reduced to 30% for 90 days.

We expect the tariff news to continue and news around this topic to remain dynamic. However, when it comes to disposable gloves, many other factors that impact glove production costs continue to develop. Raw material costs remain the most significant expense category, accounting for a large portion of total disposable glove production costs.

Nitrile butadiene rubber (NBR), a primary component in nitrile gloves, could experience supply constraints due to production shifts out of China, maintenance at major chemical facilities, and increasing competition from the automotive and construction industries for nitrile-based gloves.

Meanwhile, manufacturing bottlenecks are appearing as production facilities are challenged with labor costs, rising energy costs, implementation of new quality control measures in the wake of regulatory changes, and technological transition challenges as manufacturers upgrade equipment.

Price volatility for natural rubber latex has decreased due to a balanced supply from Southeast Asian producers. NBR prices, however, remain elevated due to continued strong demand and petroleum price fluctuations. The price spread between natural latex and nitrile has narrowed compared with historical averages.

Another key variable is energy, which represents up to a growing portion of production costs and has significant regional variations. Among the cost factors are electricity prices, with manufacturing facilities in Southeast Asia facing 5-7% higher electricity costs compared with 2024.

What happens with tariffs will continue contributing to all the abovementioned factors. Besides the direct added cost, tariffs may also reshape the existing trade routes, leading raw materials, labor, and products to move in different ways in the future. Stay tuned for more updates.

Download our Q2 Disposable Glove Market Update.

Missed our first post of the series: Q2 Market Update: Tariffs Take Centerstage? Check it out here.

Missed our second post of the series: Q2 Market Update: Logistics Always a Factor? Check it out here.

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Q2 Market Update: Tariffs Take Centerstage

Q2 Market Update: Tariffs Take Centerstage

First in a series

As we progress into Q2 2025, the disposable glove market and the rest of the business world are fixated on the impact of tariffs. Naturally, this is one of the main topics for our Q2 Market Update and will continue to be dynamic throughout the coming weeks.

As of mid-April, the U.S. government has implemented tariffs of up to 145% on all products from China and 10% on products from across the globe. It appears to be using the potential of additional tariffs as leverage or a tool to remake trade agreements worldwide. However, that may further scramble supply chains and trade flows that are already changing as companies seek alternatives to China as the source of their goods.

Experts say the result could be a domino effect of protectionism, with countries turning inward and raising tariffs in response to American trade barriers. The upheaval could also generate a new cast of regional alliances and ultimately reduce the importance of the United States in trade with Asia.

The disposable glove market is likely to feel the impact of trade wars simply because over 90% of production is outside of the United States and is beholden to global supply and logistics networks.

Download our Q2 Disposable Glove Market Update.

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Disposable Gloves and Sustainability – What’s the Impact?

As disposable glove use has skyrocketed over the last three decades, evaluating sustainability options for them has become increasingly important, almost fashionable.

Of course, it would be interesting to imagine gloves that magically vanish after use or could be recycled on a grand scale.  There’s much conversation surrounding gloves’ biodegradability, recyclability, or compostability. However, at least for now, these efforts may be largely impractical. To summarize, here are some of the solutions that are often marketed as sustainable and that may border on greenwashing:

  • Biodegradable gloves are a nice idea, but most solutions do not meet proper biodegradability standards in states such as California.
  • Compostable gloves, even when they meet the requirements, often require specialized commercial composting facilities, which are not universally accessible.
  • Recycling gloves are frequently unfeasible due to limited availability, high cost, and contamination.

Even if some of these materials and practices were to become more feasible, more than 99% of gloves sold worldwide do not involve them. Their impact is just too small to measure.

The more immediate impact of improving the sustainability of disposable gloves is less about the “glamourous” promises of new materials and more about impacting the overall CO2 emissions during their production and transportation. Due to their peculiar supply chains, hundreds of billions of gloves are transported worldwide.

AMMEX – Commitment to Impact on Sustainability

Our focus is on measurable, reportable, and auditable environmental sustainability. By aligning reduction targets with climate science, we are concentrating efforts on reducing emissions. The Science Based Targets initiative (SBTi) has approved AMMEX’s near-term science-based emissions-reduction target: We commit to a 42% reduction in our operational carbon emissions (from a 2022 baseline) by 2030.

We are committed to long-term measurement and review of our approach to sustainability. As always, efficiency in transporting disposable gloves will remain a priority, even without established benchmarks.

For more information, visit our website or download our sustainability report. By focusing on emissions within our supply chain—areas we can directly influence—and collaborating with our manufacturers to minimize their impact, AMMEX aims to drive a meaningful impact on disposable glove sustainability.

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For Industrial Hand Protection, Gloveworks Nitrile Is the Solution

It’s safe to say that in the manufacturing industry, hand protection is a priority.

From working with machinery to encountering chemicals and hazardous materials to protecting products from contamination, single-use gloves factor into just about any scenario that involves making things. Some jobs require specialty protection like extra-thick neoprene, cut-resistant, or “armored” and padded work gloves, but just about everyone needs some degree of hand safety.

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