As the packaging landscape continues to evolve, 2025 is shaping up to be a transformative By the time this article goes live, new tariff policies will likely be in place, affecting different sectors and regions.
Rather than focusing on specifics that may change, let’s take a step back and look at the bigger picture—how brands can navigate this shifting landscape, especially when sourcing packaging from China.
- The Current Tariff Situation
- A Different Perspective: Turning Increased Costs Into Revenue
- Optimize Costs Without Cutting Corners
- Make Packaging Work Smarter
- Leverage Connected Packaging
The Current Tariff Situation
As of now, in addition to the existing 25% tariff on general packaging goods, an extra 10% has been added, bringing the total to 35%.
To put that in perspective, if you spent $1 million on packaging last year, you paid $250K in tariffs. This year, that number jumps to $350K—an increase many brands simply can’t afford to ignore.
So, what are the options?
- Ask your supplier to absorb the extra 10% – Sounds simple, but could lead to quality cuts or supply chain instability.
- Negotiate a shared burden – Find a compromise that works for both parties.
- Shift sourcing to Vietnam or other lower-tariff regions – Possible, but supply chain gaps and material inconsistencies can be a challenge.
- Buy packaging from the U.S. – Ideal in theory, but with years of manufacturing decline, sourcing specialized packaging domestically isn’t always feasible, especially for custom rigid boxes, glass, or unique plastics.
A Different Perspective: Turning Increased Costs Into Revenue
Social media has redefined the purpose of packaging. Where packaging once had to stand Instead of treating tariffs as just another financial burden, consider this: while your competitors are scrambling to cut costs, what if you used this moment to make your packaging work harder—turning it into a revenue driver rather than just an expense?
Optimize Costs Without Cutting Corners
Instead of demanding your supplier take on the 10% increase, ask how they can help optimize materials, design, and logistics. A strong supplier will appreciate a partnership approach, and often, small changes can lead to savings that exceed the tariff increase.
Make Packaging Work Smarter
Instead of maintaining the status quo, look for ways to enhance your packaging. We helped a client upgrade from a simple SBS carton to a rigid box—yes, the switch increased costs by 3%, but it also boosted retail sales by 7%. Sometimes, a small investment yields big returns.
Leverage Connected Packaging
Connected packaging has been a buzzword for years, but now, it’s a practical tool. Turning packaging into an interactive experience—one that drives customer engagement, retargeting, and even direct sales—transforms it from a cost to an investment with real ROI. We’ve already seen proven success in multiple campaigns, and I’ll dive deeper into this in my next post.
For more packaging ideas on enhancing brand value, feel free to check out our Case Studies.
Leaders See Opportunity in Change
Uncertainty is part of doing business. We’re in the middle of a major shift in global trade, manufacturing, and policy. It’s easy to follow the crowd—cutting costs, playing defense, and reacting to change. But the companies that see challenges as opportunities are the ones that lead, setting new standards instead of just adapting to them.
Rather than reacting with fear, now is the time to innovate. While others are busy adjusting, you can be the one pushing forward. Don’t just survive change, use it to grow.
