Trump Tariffs: Tracking the Impacts on the Packaging Industry
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Uncertainty is now the new normal in the packaging industry.
Tariffs can shift quickly and can cause your costs to increase dramatically.
Imagine you’re about to launch a new product, and you’ve already budgeted for your paper bags.
Suddenly, the cost of importing this program becomes much more expensive than your budget allows.
What should you do?
This scenario has become all too real for many businesses since the Trump Tariffs took effect.
To help you navigate this volatile market, we created this go-to resource, which we will update as changes unfold.
Discover how the Trump Tariffs can impact your packaging and explore practical strategies to protect your bottom line.
Latest Updates
- 145% – Total tariffs now imposed on all goods from China, including paper and plastic packaging, up from the original 20% following multiple increases through April 9.
- 10% – A baseline tariff took effect April 5 on packaging materials from selected countries listed in Trump’s April 2 announcement. This includes the European Union, but excludes Canada, Mexico, Russia, and North Korea.
- 25% – Tariffs apply to packaging goods from Canada and Mexico only if they cannot meet the USMCA rules of origin.
- Paper and plastic packaging materials from Canada, Mexico, and the EU remain tariff-free if they qualify for exemptions, either through USMCA compliance or sector carve-outs, such as those outlined in the original executive order. A proposed 20% tariff on EU packaging remains on hold.
Source: USA Today
Key Concerns
- 85% of executives plan to revamp their supply chains in 2025, and nearly 50% cite Trump’s trade war as a top concern. [Packaging Europe, Feb 2025]
- The Plastics Industry Association, noting $73.3 billion in plastics imports last year, is “deeply concerned” about disruptions to the packaging supply chain. [March 2025]
How Will the Trump Tariffs Impact Your Packaging Costs?
The short answer is that costs will likely go up.
Raw material prices are already rising due to the Trump Tariffs.
Budgeting also becomes trickier when you factor in recently imposed tariffs.
Companies that rely on imported packaging, such as paper bags or paper mailers, should plan for worst-case scenarios.
Even a slight jump in price per unit can add up to thousands or millions of dollars over time.
Here’s what to expect:
- Price Increases: A 25% tariff on imported packaging can turn a $100,000 shipment into a $125,000 burden.
- Ripple Effects: You must decide whether to absorb the costs of the tariffs or adjust pricing to reflect adding the new tariffs. Both can have adverse effects on your bottom line.
- Market Shifts: If you decide to raise prices, consumer spending patterns could change. They may buy less, switch to less expensive brands, or delay purchases.
The Positive Impact: These shocks might allow you to form deeper relationships with your packaging suppliers, where both sides collaborate on cost-saving ideas or new technologies.
How Will the Trump Tariffs Impact Packaging Supply Chains?
Tariffs don’t just increase costs. They also disrupt the flow of goods.
Packaging supply chains are highly interconnected across borders.
Many U.S. brands purchase finished packaging from Canada, Mexico, or overseas suppliers.
Here’s how the Trump Tariffs are causing chaos in these networks:
Cross-Border Complexity
Your brand’s packaging may rely on materials and production from multiple countries.
If one link in this chain slows down, the entire delivery timeline may get disrupted and cause you to miss deadlines.
That means empty shelves, canceled orders, or overtime pay for workers waiting for materials.
Decades-old logistics arrangements are suddenly in jeopardy.
Seeking alternative sources for packaging products, like paper bags or paper mailers, is essential if your shipments now incur a heavy tariff.
But it does come with some challenges.
Seeking Alternatives
Switching suppliers is rarely quick or cost-effective.
It requires vetting packaging manufacturers, testing materials, and sometimes even buying new machinery.
The scramble to find tariff-free sourcing options can also boost competition.
Prices could climb again as more buyers chase a smaller pool of tariff-free domestic or overseas packaging suppliers.
It’s a careful balance between avoiding one cost spike and accidentally causing another.
International Trade Tensions
Tariffs and trade disputes continue to reshape the global packaging market.
Some suppliers may scale back or stop selling to the U.S. due to rising costs and policy uncertainty.
This volatility makes it difficult to plan for the future—since another wave of tariffs could come at any time.
However, not all overseas packaging production will be affected.
Through our global network of suppliers, we provide cost-effective options in tariff-free countries.
And should more regions be added to the list, we can shift sourcing and keep your packaging supply chain running smoothly.
Contact us today to discover how to avoid major disruptions and maintain stable pricing. Click here to schedule a call.
Trump Tariffs: Four Strategies to Mitigate the Impact
Consider these strategies to protect your packaging supply chain:
- Diversify suppliers: Spread sourcing across multiple regions to reduce reliance on tariffed imports.
- Build safety stock: Hold strategic inventory to manage short-term tariff disruptions.
- Supplier collaboration: Work closely with Creative Retail Packaging to negotiate alternatives or adjust procurement strategies.
- Agility: Monitor tariff developments and maintain flexibility to adapt quickly.
Building a Resilient Packaging Future
The Trump Tariffs are certainly posing a challenge for businesses everywhere.
Yet, amid the challenges lies a chance to strengthen your brand in the long run.
It’s also important to remember that trade situations are fluid.
Today’s tariffs might be gone tomorrow, or new ones could emerge.
The key takeaway is to build flexibility and resilience into your operations.
If you’d like more detailed guidance, partner with Creative Retail Packaging.
With over 45 years of experience in the industry, we’ve seen it all.
Our team tracks global markets, maintains a diversified supplier network, and can offer cost-effective solutions.
Fill out the form below to schedule your free consultation today and learn how we can help you build a resilient packaging supply chain.
