While trade restrictions always introduce friction into supply chains, the May 2025 Revision 13 tariffs’ effect on the packaging industry are particularly notable.
For businesses sourcing packaging materials or finished goods overseas, especially from countries like China, tariffs can silently inflate costs and disrupt timelines.
Understanding how tariffs work—and more importantly, how to protect your business from them—is essential to maintaining a healthy supply chain and budget. Here’s what every business relying on custom packaging should know.
Table of Contents
- What are import tariffs and why do they affect packaging?
- Tariffs’ effect on packaging supply chains
- How tariffs impact packaging material costs
- How to offset tariff-related packaging costs
- How Spectrum helps businesses navigate tariffs
What are import tariffs and why do they affect packaging?
Import tariffs are taxes on imports that create cost incentives to produce goods and services domestically. They are protectionist measures regularly used by countries whose goal is to support domestic industries amidst foreign competitors that can provide goods and services at lower costs.
Trade tariffs are but one of a variety trade restrictions that create allow a levying country to grow certain domestic sectors or to use as leverage in trade negotiations. Unfortunately, these tariffs drive up costs for many types of packaging categories that affect a wide variety of businesses and brands.
The U.S. first introduced Section 301 tariffs in 2018 to penalize China for trade practices deemed unfair. These tariffs have been carried forward into the 2025 Harmonized Tariff Schedule (HTS) Revision 13, the current tariff regime, which remains in force today.
Each product’s tariff is determined by their assigned ‘HTS code’–an identification system used to classify imported goods and materials that are in this case, based on the specific type of packaging material used.
As a result, sourcing custom packaging from overseas has become more expensive, less predictable, and fraught with regulatory overhead.
Tariffs’ effect on packaging supply chains
Tariffs affect your packaging costs in more ways than one, and can create a ripple effect across your entire supply chain.
Material prices surge as tariffs on raw materials like kraft paper or corrugated board push up base costs, directly increasing the expense of key packaging components.
Shipping costs climb due to customs delays, fuel surcharges, and additional handling fees, adding further pressure on your budget.
Production bottlenecks also emerge as overseas facilities grapple with higher regulatory burdens and limited flexibility. This slows down manufacturing and delivery timelines.
For example, a cosmetics startup sourcing printed boxes from China experienced a $1.50 per unit increase when new tariffs were implemented. This spike was enough to offset any savings from cheaper overseas production. This type of margin erosion highlights how tariffs financially disincentivize businesses from using global sourcing.
These challenges underscore the need to adapt strategies, whether by exploring domestic suppliers or optimizing inventory to mitigate the ongoing impact of tariffs in 2025.
How tariffs impact packaging material costs
Imported packaging materials like corrugated paperboard, folding cartons, kraft paper, and plastic packaging face significant impact from tariffs on imports from China. These can affect your packaging supply chain and import costs.
The tariff’s impact on businesses is primarily dependent on the type of trade relation that nation has with the U.S:
- General Rate: This rate applies to imports from countries with which the U.S. maintains normal trade relations, encompassing most World Trade Organization (WTO) members.
- Special Rate: This preferential rate is available under specific trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), provided the goods meet the necessary rules of origin criteria.
- Rate for Non-Normal Trade Relations Countries: This higher rate applies to imports from countries that do not have normal trade relations with the U.S., such as North Korea and Cuba.
- Additional Duty for Products of China (under Section 301): These are surcharges applied on top of the standard duty rates
According to the 2025 HTS (Revision 13), the tariffs impact packaging costs in the following ways:
Corrugated paperboard cartons, boxes, and cases
HTS Code: 4819.10.00
Description: Cartons, boxes, and cases, of corrugated paper or paperboard. These containers are widely used for shipping and storing goods due to their strength and durability.
Tariff Rates (as of May 2025):
- General Rate (Column 1): Free
- Special Rate (Column 1): Free
- Rate for Non-Normal Trade Relations Countries (Column 2): 35%
- Additional Duty for Products of China (under Section 301): 25%
Folding Cartons, boxes, and cases of non-corrugated paper or paperboard
HTS Code: 4819.20.00
Description: Folding cartons, boxes, and cases, of non-corrugated paper or paperboard. Commonly used for packaging retail products, these folding cartons offer a lightweight and printable solution for branding.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Rate for Non-Normal Trade Relations Countries: 35%
- Additional Duty for Products of China (under Section 301): 25%
Shipping sacks and multiwall bags (other than grocers’ bags)
HTS Code: 4819.30.00.20
Description: Shipping sacks and multiwall bags, other than grocers’ bags. These sacks are typically used for bulk packaging of commodities like grains, flour, and cement.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Rate for Non-Normal Trade Relations Countries: 35%
- Additional Duty for Products of China (under Section 301): 25%
Sanitary food and beverage containers
HTS Code: 4819.50.20.00
Description: Sanitary food and beverage containers. Designed for direct contact with consumables, these containers are essential for packaging ready-to-eat foods and beverages.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Rate for Non-Normal Trade Relations Countries: 35%
- Additional Duty for Products of China (under Section 301): 25%
Plastic boxes, cases, crates, and similar articles
HTS Code: 3923.10.00
Description: Boxes, cases, crates, and similar articles, of plastics. These plastic containers are commonly used for durable goods packaging and are favored for their reusability and resistance to moisture.
Tariff Rates (as of May 2025):
- General Rate: 3%
- Special Rate: Free (for eligible countries under trade agreements)
- Rate for Non-Normal Trade Relations Countries: 80%
- Additional Duty for Products of China (under Section 301): 25%
Other plastic articles for the conveyance or packing of goods
HTS Code: 3923.90.00
Description: Other articles for the conveyance or packing of goods, of plastics. This category includes a variety of plastic packaging materials such as blister packs and inserts, widely used for securing small consumer goods.
Tariff Rates (as of May 2025):
- General Rate: 3%
- Special Rate: Free (for eligible countries under trade agreements)
- Rate for Non-Normal Trade Relations Countries: 80%
- Additional Duty for Products of China (under Section 301): 25%
Kraft paper and paperboard, uncoated, in rolls or sheets
HTS Code: 4804.00
Description: Kraft paper and paperboard, uncoated, in rolls or sheets. This versatile material is commonly used in packaging applications such as wrapping, interleaving, and as protective layers due to its durability and strength.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Rate for Non-Normal Trade Relations Countries: 35%
- Additional Duty for Products of China (under Section 301): 25%
Kraftliner, unbleached, in rolls or sheets
HTS Code: 4804.11.00.00
Description: Unbleached kraftliner, in rolls or sheets. This type of kraft paper is primarily used as the outer layer in corrugated cardboard boxes, providing strength and durability for packaging applications.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Non-Normal Trade Relations Rate: 35%
- Additional Duty for Products of China (under Section 301): 25%
Kraftliner, other than unbleached, in rolls or sheets
HTS Code: 4804.19.00.00
Description: Kraftliner, other than unbleached, in rolls or sheets. This variant is often used in packaging where a lighter color or specific printing requirements are desired, maintaining the structural integrity needed for corrugated boxes.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Non-Normal Trade Relations Rate: 35%
- Additional Duty for Products of China (under Section 301): 25%
Sack kraft paper, unbleached, in rolls or sheets
HTS Code: 4804.21.00.00
Description: Unbleached sack kraft paper, in rolls or sheets. Commonly utilized for manufacturing industrial sacks and bags, this paper offers high tensile strength suitable for heavy-duty packaging.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Non-Normal Trade Relations Rate: 35%
- Additional Duty for Products of China (under Section 301): 25%
Sack kraft paper, other than unbleached, in rolls or sheets
HTS Code: 4804.29.00.00
Description: Sack kraft paper, other than unbleached, in rolls or sheets. This paper is used for similar applications as unbleached sack kraft but offers different aesthetic or printing qualities for specific packaging needs.
Tariff Rates (as of May 2025):
- General Rate: Free
- Special Rate: Free
- Non-Normal Trade Relations Rate: 35%
- Additional Duty for Products of China (under Section 301): 25%
As you can see, import tariffs impact a broad range of industries. From medical and pharmaceuticals to health and beauty, and even the food and beverage industries–most if not all U.S. businesses should prepare to reexamine their packaging procurement processes.
How to offset tariff-related packaging costs
To stay competitive amid shifting trade policies, successful brands are taking proactive steps to reduce costs and maintain supply chain resilience:
Source locally or nearshore to bypass tariffs entirely
By shifting production closer to home or to nearby countries, companies can eliminate exposure to import tariffs and reduce shipping times. This strategy also helps build more resilient supply chains less vulnerable to geopolitical disruptions.
Re-engineer packaging to use less material or alternative substrates
Brands are redesigning packaging to use fewer resources and incorporate materials that are more affordable or exempt from tariffs. This not only cuts costs but also aligns with growing consumer demand for sustainable packaging.
Consolidate orders to reduce unit cost per shipment
Bulk shipping allows businesses to maximize container space and reduce the cost per unit. By streamlining logistics, companies improve efficiency and reduce the frequency of costly international shipments.
Explore materials not subject to tariff restrictions
Switching to raw materials or components that fall outside current tariff schedules can deliver immediate cost savings. It also opens the door to innovation by encouraging the use of alternative inputs.
Work with adaptive suppliers who stay ahead of trade policy changes
Responsive suppliers who monitor and anticipate trade developments can help businesses stay compliant and competitive. These partners often provide flexibility in sourcing and production timelines, allowing brands to pivot quickly as conditions change.
How Spectrum Custom Packaging helps businesses navigate tariffs
At Spectrum, we help businesses thrive despite evolving trade regulations. Global supply chains are shifting fast, and packaging is often where those pressures hit first.
Whether you’re navigating new tariffs, freight surcharges, or material shortages, our team is built to help you stay ahead—with smart design, transparent pricing, and a flexible sourcing model that puts control back in your hands.
Here are a few areas where we can provide expert guidance as we navigate an uncertain future together:
Domestic manufacturing eliminates tariff exposure
By producing packaging within the U.S., we help businesses sidestep unpredictable import duties and global shipping delays. This ensures greater cost stability and faster lead times for your packaging needs.
In-house structural design reduces waste
Our expert design team engineers packaging that uses less material without compromising protection. This lowers costs, improves sustainability, and reduces your exposure to supply chain fluctuations.
Transparent pricing means no surprise customs fees
We believe in upfront, all-inclusive pricing—no hidden charges, no unexpected import costs. You’ll always know exactly what you’re paying, helping you forecast and budget with confidence.
Flexible sourcing strategies across North America
We maintain a diverse supplier network throughout the U.S., Mexico, and Canada to give you more control and fewer disruptions. If one region faces delays or tariff shifts, we can pivot quickly without compromising quality or timelines.
More than boxes—we build resilient packaging supply chains
Your packaging isn’t just a product—it’s part of your brand’s infrastructure. We help you design a system that’s responsive, efficient, and ready to adapt as trade policies and customer needs evolve.
While tariffs may be a permanent fixture of the immediate future of global trade, it absolutely does not mean your packaging costs should to spiral out of control.
By auditing your packaging sources, rethinking design, and choosing a partner like Spectrum Custom Packaging, your business stays competitive and confident—even in a volatile trade environment.
Contact us with questions–we can help you cut costs, navigate tariffs, and grow your brand without compromise.
References
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions