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Highlights

  • Ansell shares gain 4.042.6% after previous session's 16.4% plunge triggered by U.S. tariff announcement.

  • Company maintains FY25 earnings forecast despite exposure to heavily tariffed markets.

  • Plans to offset higher costs via price hikes, supply chain diversification, and production relocation.

Shares of Australian medical gear maker Ansell Ltd (ASX:ANN) rose 4.02% during afternoon trade on Friday, recovering some ground after a sharp selloff in the previous session saw the stock plunge as much as 16.4%. The rebound followed the company’s assurance that it will fully offset the impact of newly announced U.S. tariffs through a targeted pricing strategy.

Ansell, known globally for its surgical gloves and protective medical apparel, is among the hardest-hit companies under the White House’s revised trade policy. The updated levies—aimed at reshaping global supply chains—introduce steep tariffs on goods imported from a host of countries, many of which are integral to Ansell’s production network.

An annexure to the U.S. announcement outlined significant increases: 24% on imports from Malaysia, 37% from Thailand, 44% from Sri Lanka, and 27% from India. Ansell also operates manufacturing facilities in Vietnam—facing a 46% tariff—and China, along with smaller plants in Portugal, Lithuania, and Brazil.

Despite this high level of exposure, the company reiterated on Friday that it is holding firm on its fiscal 2025 forecast for adjusted earnings per share (EPS), projecting between 118 and 128 U.S. cents. 

In a statement, Ansell said it plans to “substantially offset” the added cost burden through price increases, greater production diversification, and strategic relocation of manufacturing facilities, particularly outside China. The company had already outlined parts of this plan during its half-year results, suggesting that the groundwork for adaptation was underway even before the latest tariffs were unveiled.

However, analysts remain cautious. Jefferies highlighted that Ansell may need to rethink its outsourcing model entirely, as Southeast Asian tariff rates now vary dramatically. Meanwhile, Craig Wong-Pan of RBC Capital Markets estimated that, without mitigation, the tariffs could slash up to AU$230 million from the company’s 2026 earnings. Citi analysts echoed those concerns, calling Ansell the “most negatively exposed” medical equipment maker under the new U.S. tariff regime.

The recent tariff shock comes just as Ansell was beginning to recover from a prolonged industry-wide slump driven by a pandemic-era oversupply of medical products.