Few domestic industries have been as severely impacted by the influx of inexpensive Chinese imports as those producing face masks, exam gloves, and other disposable medical equipment essential for protecting healthcare workers from infectious diseases.
The decline of this industry had dire consequences during the Covid pandemic, particularly when China suspended exports, leaving American hospital staff vulnerable to a rapidly spreading and deadly virus.
As President Trump introduced a new tariff policy earlier this month, Beijing retaliated with an 84 percent tax on American imports, creating unease among the few remaining U.S. manufacturers of protective gear. Lloyd Armbrust, CEO of Armbrust American, expressed concern over the potential implications of these tariffs on the industry.
Historically, the United States was a leader in personal protective equipment (P.P.E.), with innovations such as the N95 mask and disposable nitrile glove originating there. However, China now produces over 90 percent of the medical gear used by American healthcare workers.
Despite bipartisan commitments to reduce reliance on foreign medical products and support domestic manufacturing, federal and state agencies have continued to depend on cheaper Chinese imports. For instance, California recently opted to purchase Chinese-made N95 masks for wildfire relief.
Industry experts have raised alarms over the renewed dependency on imported medical products, especially in light of ongoing health threats such as measles outbreaks and avian flu, as well as the implications of the trade conflict with China.
Mike Bowen, a former mask manufacturer, noted that the decline of the American P.P.E. sector was predictable, criticizing the lack of learning from past experiences. Many startups that emerged during the pandemic, including United States Mask, have since closed due to decreased demand as the pandemic receded and masks became associated with government overreach.
Currently, only five of the 107 companies formed during the pandemic remain operational in producing masks and gloves, according to the American Medical Manufacturers Association.
Eric Axel, the association’s executive director, indicated that high tariffs on Chinese-made protective gear could potentially benefit American manufacturers. However, other industry leaders are concerned that escalating trade tensions might disrupt supply chains and lead to P.P.E. shortages again.
Many industry executives argue that effective legislative measures are necessary to ensure government agencies prioritize American-made products over cheaper imports. They emphasize that even with substantial tariffs, Chinese products could still undercut U.S. prices.
Political leaders had previously pledged to avoid future reliance on foreign medical equipment, with significant federal investments made during the pandemic to support domestic production. However, loopholes in legislation aimed at prioritizing domestic purchases have hindered these efforts.
Despite the Trump administration's focus on reducing dependence on foreign medical gear, experts suggest that tariffs alone have not effectively addressed the competitive disadvantages faced by American manufacturers.
Currently, the majority of masks used by hospitals and government agencies continue to be imported, primarily from China, with some products sourced from Thailand, Vietnam, and Mexico.
While some companies have successfully adapted, like SafeSource Direct, which partners with healthcare networks to provide a stable supply of gloves, others have struggled to maintain operations. DemeTech Corporation, for example, has pivoted back to more profitable products after losing contracts due to price competition from Chinese imports.
Federal contracts and "Buy American" mandates are viewed by industry stakeholders as essential for sustaining the remaining domestic players. Other companies, like United Safety Technology, have faced challenges securing necessary funding to complete projects aimed at increasing domestic production.
Despite the chaos surrounding the market, some industry leaders remain cautiously optimistic about the future, hoping that tariff policies will ultimately benefit American manufacturers.