Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Maker of Purell Hand Sanitizer Denied in Request for Trump Tariff Relief

Published 03/27/2020, 08:00 AM
Updated 03/27/2020, 08:18 AM
© Reuters.  Maker of Purell Hand Sanitizer Denied in Request for Trump Tariff Relief

(Bloomberg) -- With the U.S. now surpassing all other countries in the number of coronavirus cases and health experts estimating the peak may still be weeks away, President Donald Trump’s administration is having a harder time defending tariffs on health-related goods imported from China.

That’s especially true for products used in the U.S. response to the pandemic that are in high demand but running short on supply, such as ventilators, surgical masks and hand sanitizers.

Gojo Industries, the inventor and manufacturer of Purell-branded products, builds its hand-sanitizer and soap dispensers in the U.S., but a key input that ensures the dispensers work is made in China and subject to a 25% duty.

In a tariff-exemption request last year, Akron, Ohio-based Gojo said it’s exploring third-country sourcing but added that unilaterally moving production would require reverse engineering of a key chip that’s manufactured by a Canadian company in China. “Such action would violate their intellectual property” and Gojo “does not control the ability to move that production,” the submission reads.

The U.S. Trade Representative denied Gojo’s request earlier this month, saying the company failed to show that the duties “would cause severe economic harm to you or other U.S. interests,” according to USTR General Counsel Joseph Barloon’s letter on March 5.

Three weeks later, the USTR issued exemptions for Apple's (NASDAQ:AAPL) watches and a range of other products that have no apparent link to Covid-19.

The USTR didn’t respond when asked if the Gojo denial would be reassessed as part of a new exclusion process to identify more products needed to treat the virus or limit its outbreak.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Publicly, American officials have doubled down on their tariff strategy and are calling for a rethink of supply chains, especially when it comes to key medical products.

The reliance on other countries for those supplies has created a strategic vulnerability for the U.S., trade chief Robert Lighthizer said. “By encouraging diversification of supply chains and — better yet — more manufacturing in the U.S., President Trump’s economic and trade policies are helping to overcome that vulnerability,” he wrote in a Wall Street Journal editorial last week.

Latest comments

Again Trump placing his political agenda ahead of Americas health.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.