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 Sustainable 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.