On September 13, 2024, the Office of the United States Trade Representative (USTR) announced the finalization of a 100% tariff on syringes and needles imported from China, effective September 27, 2024. This decision significantly increases the cost of these medical goods for U.S. importers.
Retractable Technologies, Inc. (RVP) stated that this new tariff is expected to considerably increase its costs, as 91% of its products were sourced from China in the first half of 2024. The company indicated there is insufficient time to adapt before the tariff's effective date.
For the first half of 2024, RVP reported net revenues of $13.6 million and operating losses amounting to $8.7 million. The company is exploring cost-cutting measures and plans to enhance existing equipment for domestic production, but the timeline for these upgrades remains uncertain.
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