Talking Tariffs with CSC…

Adding on to our last week update, things remain very fluid and unpredictable, we will continue to update on a weekly basis.

News:

  • New Tariffs have been applied to Japan and South Korea at a 25% rate.
  • Deadline for Tariff negotiations have been extended from July 9th to August 1st, 2025.
  • Besides South Korea and Japan, Trump on Monday set out plans for a 40% tariff on goods from Myanmar and Laos, a 36% tariff on goods from Thailand and Cambodia, a 35% tariff on goods from Serbia and Bangladesh, a 32% tariff on Indonesia, a 30% tariff on goods from South Africa and a 25% tariff on goods from Malaysia and Tunisia.
  • Deals have been struck with Vietnam and the UK, but many of the details are still in discussion.

Overview:

 

 

Commodity pricing:

  • Last week cotton and oil both dropped, but have rebounded this week. The markets continue to speculate on the impact of Tariffs on the global economy, but their predictions continue to be off.

Impact on Cost

  • What does a 10% or a 30% added tariff add to the selling price of an item?

An example:

This chart shows the impact of what the cost will be doing with the tariffs, an example of a poly/cotton patient gown with a country of origin of Vietnam. The final impact would be a total of a 17% increase in total cost.

Know Country- Vietnam Change in Cost
I was made and arrived on a boat prior to 4/8/2025  
  factory cost Duty Rate 16% Loaded Cost
Patient Gown $      4.7600  $                                 0.7616  $                5.5216
I was made and arrived on a boat after to 4/8/2025  
  factory cost Duty Rate 16% +10 % tariff Loaded Cost
Patient Gown $      4.7600  $                                 1.2376  $                5.9976

109%
I was made and arrived on a boat after 8/1/2025  
  factory cost Duty Rate 16% +20 % Tariff Loaded Cost
Patient Gown $      4.7600  $                                 1.7136  $                6.4736

117%

We are expecting to see countries take some measures to reduce costs, so as not to lose their manufacturing to other countries. These may include:

  • Revaluation of the currency
  • Changes to wage laws (slowing of wage increases)

Market impact that could be helpful:

  • Shipping costs are reduced if volumes decrease
  • Fuel savings at lower oil prices
  • Chemical savings at lower oil prices
  • Raw materials: cotton and poly are trending lower.

The final answer on cost impacts will take some time to calculate, and we will see new sourcing strategies emerge as suppliers strive to maintain the lowest possible costs.

CSC Supplier updates due to Tariffs:

 

  • Milnor: Effective April 7th, due to the impact of current tariffs, Milnor kindly requests that CSC members contact the following representatives directly for up-to-date pricing information: Ricky Munch – Email: rmunch@milnor.com | Phone: (504) 712-7654  Terry Satchwell – Email: tsatchwell@milnor.com 

 

  • 1Concier: Effective August 1st, due to the ongoing impact of tariffs, 1Concier has released an updated price list reflecting an average increase of 6% on most items. A few products, primarily those sourced from China, will see adjustments of up to 13%. Please note that pricing for all table linen items will remain unchanged at this time.

 

  • M & B : Effective August 1st, implement a 3% increase across all product lines. Adjustment is necessary due to the continued rise in wire rod costs

 

Questions? Contact Jeff Landry

Disclaimer: The information provided in this update reflects the thoughts and opinions of Jeff Landry, CSC’s Executive Director, and is based on publicly available sources. It is intended solely for the purpose of education and providing value to CSCNetwork members. This content should not be interpreted as legal, financial, or policy advice.