The impact of changing import duties and trade wars on the PPE textiles industry

Ongoing geopolitical tensions and evolving trade policies are having a heavy influence on global trade routes and the sourcing of raw materials and regular transit times for goods. It is important to understand how these macro-economic shifts affect the PPE clothing supply chain, in order to stay ahead and minimise any run-on effects within your workplace.

What are the current global issues affecting import and trade?

International trade and tariffs are in an ongoing state of flux, as a direct result of various trade conflicts. Tariffs of 125% have been imposed on China by the US, which has led to supplies from China being blocked. These tariffs have now been revised to 30% for a temporary 90-day period — a level that appears more sustainable than previous rates. It remains to be seen whether both countries will use this window to establish a more permanent agreement, which could lead to greater stability across global markets and supply chains. The US has also imposed a range of inflated tariffs on European nations, with a 90-day grace period for negotiations, leaving the European market with a sense of uncertainty about how things will play out long-term. 

In addition, there is currently the issue of a global imbalance of deep-sea containers. This is resulting in longer lead times in the import and shipping of raw materials, causing instability across many industries worldwide. This imbalance comes as a direct result of rising tariffs, which have caused pauses and delays on trade, and ultimately, affected the consistent flow and balance of deep-sea containers which is needed to maintain stability within global trade flows and supply chains.  

What impact are these issues having on the PPE textiles industry?

The PPE textiles industry has been directly affected by these issues. Many raw materials, chemicals, and dyes used within PPE textiles come from China. The recent trade war between the US and China has led to lead times being extended for these components. Secondly, the regular flow of fibres and raw materials to other countries that are traditionally involved in textiles manufacturing is also interrupted, thus hindering overall output across the supply chain.

Within Europe, the 90-day grace period on negotiations with the US has made it harder for safety managers to plan ahead when it comes to orders and supplies, as the region remains in a grey zone with regards to expected tariffs and availability of raw materials. Deliveries of modacrylics have been delayed due to port restrictions, and lead times for raw materials have been extended. 

Furthermore, the instability of global tariffs can potentially cause the price of protective fabrics to increase. Alongside these tariffs, some countries are also imposing raw material bans. For instance, China has imposed a ban on antimony — a metallic element mainly used in electronic chips — in order to put pressure on the tech sector. However, antimony is also used in the modacrylic fibre, which is used in technical FR fabrics. This in turn puts great pressure on the entire supply chain within the PPE textiles industry, who have to forward on the costs.

How do we stay ahead and minimise the impact?

While these global issues have generated a period of great uncertainty within the PPE textiles industry, there are ways that procurement and safety managers can act to minimise the impact on their workplaces:

• Factor in stretch within your budget: assume that the cost of protective fabrics will rise, and therefore allow for contingency within your budget, particularly while negotiations are ongoing between Europe and the US during the 90-day grace period.
• Factor flexibility into your delivery timeframe: assume that raw materials will take longer to arrive than usual, therefore allocate extra time when devising a projected schedule for deliveries.
• Higher safety stocks: to act as a cushion against ongoing supply chain disruptions, ensuring that your workers remain protected no matter what.
• Remain in consistent dialogue with fabric partners: so that you are up-to-date with the latest information and developments around raw material availability.

At this time of ongoing fluctuation and uncertainty, it is key to plan ahead, considering the worst possible scenario in terms of prices and lead times, so that you are prepared no matter what the reality.

Keen to find out more?
If you’d like to discuss the impact of changing import duties and trade wars on the PPE textiles industry, please feel free to get in touch. One of our specialists will be happy to help.