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Ansell (ASX:ANN) has today confirmed U.S. consumers will bear the brunt of Trump tariffs with the company now planning to raise its U.S. prices.
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Ansell was slaughtered on Thursday as the market made its assessment of the company’s exposure to the U.S. tariff regime; significant for one reason.
Ansell manufactures a lot of its products in Malaysia and Sri Lanka, as well as other Asian and Southeast Asian jurisdictions – including China – which received higher tariff rates than many Western counterparts.
In that way, Ansell shares are down -14% MoM and down nearly -10% YTD, cemented by Thursday’s sell-off. (At 11am on Friday, shares had regained +4%).
That upward bump on Friday is largely because the company has identified it will work to offset the impact of tariffs, and it’s going to do that by charging customers more.
(In this context, Ansell’s “customers” are the retailers and on-sellers that stock its products. Naturally, those cost increases will be handed down to the consumer, as in the individual citizen making a purchase.)
But whether that will be enough to recover the share price to where it sat before Wednesday within any brief timeframe remains to be seen.
The company appeared to be grumbling when it included the following sentence in a Friday release, although, maybe it was also reminding shareholders the pain they’re feeling is out of its hands.
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“It is worth noting the vast majority of manufacturing in our industry is conducted in Asian countries now subject to US tariffs, and US industry manufacturing capacity for comparable hand and body protection products is negligible,” Ansell wrote.
ANN last traded at $30.51/sh.
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