April 18, 2025
Subject: Tariff Update and SAS Safety Corp. Supply Chain Strategy
Dear Distribution Partner,
As you are most likely aware, the United States has recently implemented new reciprocal tariffs as part of an ongoing trade policy shift. We want to provide you with an update on how these changes impact our business and the proactive steps SAS Safety is taking to ensure continuity and minimize disruption.
Tariff Overview
- China: Effective April 5, 2025, a 145% total tariff applies to PPE products imported from China.
- All Other Countries: A 10% tariff applies to all other global imports under the new policy.
- Tariff Pause Window: The current pause on reciprocal tariffs for non-China countries expires July 5, 2025. Unless new agreements are reached, this may result in further rate increases across those regions.
SAS Safety Corp. Strategy & Response
SAS Safety Corp. remains committed to staying agile with our supply chain. In response to these rapid changes:
- Branded Product Focus: With the bulk of our “A” items being produced in Malaysia already, we benefit from the nimbleness of our global supply chain. We will continue to seek other manufacturing options for all active items.
- Thailand Production Acceleration: We began moving production to Thailand for disposable gloves we sourced from China last year. While not eliminating tariffs, it has helped keep the impact on costs down. Many products that were in development will likely move here as well.
- North American Production: We continue to evaluate opportunities in the U.S to further diversify our sourcing footprint and reduce tariff exposure long term. Items like the Raven Patriot are already in stock and have a healthy supply chain supporting them.
Our goal remains to deliver quality products while navigating these external challenges in a way that protects you, our distribution partner. We continue to evaluate costs and adjust as needed.
We appreciate your continued partnership.
Best Regards,
Todd Gorrebeeck
General Manager – SAS Safety Corp.