New Report Warns of Economic and Safety Risks Due to PPE Tariffs
Economic Impact of Tariffs on PPE
A new report from the International Safety Equipment Association (ISEA) focuses on the significant risks associated with tariffs implemented on and after April 2, 2025. The study reveals that rising prices for personal protective equipment (PPE) due to these tariffs could negatively impact both American workers' safety and the overall economic strength of the United States.
Key Findings of the Report
The report entitled "The Hidden Costs of PPE Tariffs: The Impacts of Tariff-Induced PPE Price Spikes on Worker Safety and U.S. Economic Strength" outlines alarming outcomes caused by these tariffs. For instance, millions of American workers who rely on PPE daily—spanning various industries from construction to healthcare—could suffer injury, which would lead to significant economic repercussions. President and CEO of ISEA, Cam Mackey, pointed out that when tariffs increase the cost of essential safety gear, it becomes more difficult for employers to provide adequate protection for their workers.
Revenue Streams Affected by Tariffs
Every day, approximately 125 million Americans depend on PPE to perform their jobs safely, spanning industries that collectively contribute about $15 trillion to the economy. Increased PPE costs may force companies into tough positions where they might have to choose between raising product prices, reducing labor, or minimizing their investment in safety measures. Among these alternatives, cutting back on PPE expenditure stands out as being especially dangerous, given that the U.S. already incurs an annual cost of $176.5 billion attributed to workplace injuries and fatalities.
The study argues that even a marginal increase in worker injuries by just one percent could result in over 40,000 injuries in the U.S. workforce, costing the economy $1.8 billion. The implications extend beyond mere financial forecasts; they revolve around the heart of worker protection, which is crucial for sustaining economic health, energy effectiveness, and national defense.
National Priorities at Stake
"When tariffs undermine the safety of workers, it poses a broader risk to national priorities like energy leadership, defense readiness, and economic vitality," added Mackey. The report advocates for heightened awareness around the relationship between worker safety and economic performance, urging lawmakers to reconsider the imposition of tariffs that put American workers at risk.
An Appeal for Policy Change
ISEA encourages the Administration to exempt PPE and vital safety equipment from tariffs set to take effect after April 2, 2025, stressing that safeguarding workers translates to safeguarding the nation. The camaraderie among industries, labor unions, and governmental bodies is imperative in ensuring access to necessary safety equipment.
Conclusion
Dan Glucksman, Senior Director of Policy for ISEA, summarized the report's findings by stating, "When workers are protected, the entire economy benefits. With fewer injuries, there are lower healthcare costs and improved productivity. Safety should be viewed as an investment rather than an expenditure."
The message is clear: protecting the workforce is tantamount to protecting the American economy. As discussions continue, Mackey requests a collaborative effort from all sectors to prioritize getting American workers the PPE they need to effectively do their jobs safely and efficiently.