Join our daily newsletter At The Bell to receive exclusive market insights
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.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
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.
More market news
Levy beef: Trump whacks Oz with 10% tariffs on “Liberation Day”
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
“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.
Join the discussion: See what HotCopper users are saying about Ansell and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
