Update: This article reflects the US tariff rates announced on April 10, 2025. Those rates have changed several times since, so confirm current duties with your customs broker before you price a reorder.
With the newly imposed tariffs, knowing how they may affect your business in the United States is critically important.
As of today, April 10, packaging materials, including cartons, sourced from China will increase in cost by 145% (125% due to increased tariffs on top of the 20% fentanyl-related tariff), as confirmed by the White House and reported by CNBC and Bloomberg. Still to consider, are the effects that countermeasures and further increased tariffs could have on the cost of goods in the near future. These increased costs will need to be paid immediately when the shipment is accepted at a port and either absorbed by your business or passed onto your customers, which could affect competitive pricing strategies. Product pricing and affordability are equally important as consumers re-evaluate their spending habits since overall costs for many goods are expected to increase.
Tariffs can also disrupt existing supply chains as secondary packaging is delayed in shipping or caught in bottlenecks due to processing or acceptance into the country of final destination. Compliance and documentation complexities could result in penalties, and expensive delays might arise from mistakes, ultimately affecting go-to-market time and increased costs of holding inventory. There is also the question of timing packaging shipments to ensure your business is not holding onto too many packaging materials or not enough.
Another consideration is that many domestic packaging companies currently source their raw materials from China and are now trying to find alternative suppliers to avoid paying increased material costs and avoid supply chain disruptions. However, there is the question of whether local supplies can meet these increased demands. Investments in infrastructure and sourcing can take time, as does adapting to new manufacturing facilities, logistics, and ensuring quality control.
As the cost and timeliness of receiving traditional packaging increase, many businesses are seeking more sustainable, domestically available alternatives that don’t rely on imports. Eco-friendly options such as using recycled and bio-degradable materials are becoming more viable solutions.
Diversifying packaging suppliers and finding domestic alternatives that offer trusted, sustainable packaging options is now more critical than ever. Those with existing partner networks, like Knockout Packaging, can help businesses navigate these packaging uncertainties and guide businesses to find affordable, trusted, domestic packaging that isn’t subject to tariffs or supply chain issues. With partners across North America, Knockout supports companies looking for eco-friendly packaging options located as close to their manufacturing facilities as possible.
Please contact us for more information on how we can support your business and ensure your products go to market on schedule and on budget.
Frequently asked questions
How much did US tariffs raise the cost of packaging from China?
As reported on April 10, packaging materials sourced from China, including cartons, faced a 145% cost increase in the United States. That figure combined 125% in increased tariffs with an existing 20% fentanyl-related tariff. The post also notes that countermeasures and further tariff increases could affect the cost of goods.
When are tariffs on imported packaging paid?
Tariffs are paid immediately when the shipment is accepted at a port. The business then either absorbs the higher cost or passes it on to customers, which can affect competitive pricing at a time when consumers are already re-evaluating their spending habits.
How can tariffs delay packaging shipments?
Tariffs can disrupt supply chains when secondary packaging is held up in shipping or caught in bottlenecks during processing and acceptance into the destination country. Compliance and documentation mistakes can lead to penalties and costly delays, which affect go-to-market timing and raise the cost of holding inventory.
Can domestic packaging help avoid tariff costs?
It can help, but it is not automatic. Many domestic packaging companies also source raw materials from China and are looking for alternatives, and local supply may not meet the extra demand straight away. Diversifying suppliers and working with a partner network across North America can help brands find options closer to their manufacturing facilities.
