Tariff Updates & Packaging Industry Impacts

Amidst recent shifts in global trade policies, US tariffs on most Chinese imports will be cut to 30% from the current 145%, while China's tariffs will drop to 10% from the current 125%, according to a joint statement. The US said the tariff reductions would be in effect for 90 days while talks proceed.

Global Baseline Tariff:

• A 10% baseline tariff on imports of nearly all foreign-origin goods will take effect on April 5, 2025. *Currently on hold.

  
  

Reciprocal Tariffs:

• Effective April 9, 2025, the U.S. will impose country-specific tariff rates on imports from certain trading partners. These rates will vary, with some significantly higher than the 10% baseline. *Currently on hold.

  
  

• 57 countries will be subject to increased reciprocal tariffs, these tariffs range from 11% to 50%. *Currently on hold.

  
  

Examples of countries with high reciprocal tariffs include(Currently on hold):

• China: 34%

• European Union (EU): 20%

• Vietnam: 46%

• India: 27%

• Japan: 24%   

• South Korea: 26%

• Indonesia: 32%   

• Malaysia: 24%   

• Pakistan: 30%

• Philippines: 18%

• Switzerland: 32%   

• Taiwan: 32%   

• Thailand: 37%

• Nigeria: 14%   

• South Africa: 31%

• Norway: 16%   

• Australia: 10%   

• Brazil: 10%

Canada and Mexico (Currently on hold):

• The preexisting 25% tariff on goods from Canada and Mexico remains in effect.

  
  

• Goods that comply with the U.S.-Mexico-Canada Agreement (USMCA) will continue to receive preferential treatment and are exempt.   

  
  

• Energy products from Canada have a 10% tarrif.

  
  

Exemptions:

• Certain products are exempt from the new tariffs, including:

  
  

  • Articles and derivatives of steel and aluminum already subject to Section 232 tariffs.

  • Automobile and automobile parts already subject to Section 232 tariffs.

  • Pharmaceuticals, semiconductors, lumber, and energy.

Potential Impacts on the Packaging Industry

These tariff increases could have significant consequences for the packaging industry. Many packaging materials and components are sourced from countries that may be affected by these trade measures.   

• Increased Costs: Tariffs directly increase the cost of imported goods. This translates to higher prices for packaging materials, potentially impacting the profitability of packaging manufacturers and converters.   

• Supply Chain Disruptions: Increased costs and potential delays at the border could disrupt supply chains, leading to production slowdowns and potential shortages of essential packaging materials.   

• Shifting Sourcing Patterns: Companies may be forced to seek alternative suppliers in countries not affected by the tariffs. This could lead to increased logistical complexity and potential quality control challenges.

How All Pack Supply Can Help

All Pack Supply can help businesses navigate these challenging times by:

• Sourcing from Diverse Locations: We leverage our extensive network of suppliers in countries not impacted by the proposed tariffs, ensuring a stable and cost-effective supply chain for your packaging needs.

• Offering Domestic Sourcing Options: We can also assist you in identifying and sourcing packaging materials from domestic suppliers, minimizing your exposure to import-related risks.

By partnering with All Pack Supply, you can mitigate the impact of these trade policies on your business and maintain a competitive edge in the market.