How Tariffs on Packaging Are Crushing “Made in America” Products
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🏠When “Made in America” Isn’t Enough
In 2025, new tariffs meant to protect American industry are having a surprising side effect — they’re hurting American-made products.
Even when a company manufactures food, beverages, or consumer goods right here in the United States, the packaging that protects and ships those products often comes from overseas.
From child-resistant containers to printed boxes and flexible pouches, the reality is clear:
America doesn’t produce enough packaging domestically to support its own industries.
At MSN Packaging, we see it every day — proud U.S. brands trying to source locally, only to find that tariffs on imported jars, lids, films, and paperboard make their packaging costs skyrocket.
📦 The Packaging Problem No One Talks AboutÂ
Globalization made packaging affordable and consistent for decades. China, in particular, built massive infrastructure dedicated to manufacturing closures, jars, pouches, and display cartons at unmatched scale.
Meanwhile, American companies focused on product development and branding — not raw packaging production.
When tariffs hit these imported materials, it’s not the big overseas factories that suffer — it’s the small and mid-sized American producers that fill, label, and ship those packages.
According to Packaging Gateway, the latest tariffs are driving up costs on plastics, metals, and paper-based packaging across multiple industries.
Even the elimination of small import exemptions — the “de minimis” rule — means that low-value packaging items are no longer exempt from tariffs (Avalara).
đź’” A Real Example: The Mom-and-Pop Brand Feeling the Pinch
Picture a small jam company in Ohio.
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They buy fruit from local farmers.
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They employ a small team of neighbors.
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Their brand proudly says “Made in the USA.”
But their jars, lids, and labels come from overseas — because no U.S. manufacturer can produce them affordably or at scale.
When tariffs raise import costs by 25%, their profit margins collapse. Their options are limited:
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Raise prices, risking customer loss
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Downgrade packaging quality, hurting shelf appeal
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Or delay production waiting for lower-cost supply
This story isn’t unique. Across the country, small businesses are caught in the same trap. The Associated Press reported that family-run retail shops and manufacturers have been cutting inventory and increasing prices as trade costs soar.
🌏 China’s Global Advantage — and America’s Dependence
While U.S. producers are squeezed, China keeps growing its export markets.
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It dominates global supply of packaging plastics, paperboard, and tin.
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Its factories are massive, efficient, and increasingly automated.
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If one country imposes tariffs, it simply sells to another.
The uncomfortable truth: China doesn’t need U.S. buyers — but many U.S. businesses still rely on China.
That imbalance won’t fix itself overnight. The packaging industry took decades to offshore; rebuilding it will take investment, policy support, and time.
⚖️ A Broken Supply Chain
Tariffs are designed to rebuild American manufacturing. But without domestic infrastructure to replace what’s being taxed, they simply raise prices on U.S. companies without creating alternatives.
As Supply Chain Dive notes, new tariffs on steel and aluminum — critical for packaging cans and closures — are forcing American brands to absorb higher costs or delay launches.
In short, the U.S. has too few factories, too little capacity, and too many dependencies.
Until those gaps are filled, the burden of tariffs falls squarely on American small businesses.
đź’ˇ What U.S. Brands Can Do
Even though global forces are beyond one company’s control, there are steps that can help:
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Diversify suppliers.
Work with partners who have multiple production bases — U.S., Asia, and nearshore (Mexico or Canada).
MSN Packaging maintains relationships across global and domestic packaging plants, giving brands flexibility when tariffs shift. -
Audit packaging costs.
Understand how much tariffs, freight, and raw material changes affect your unit cost.
MSN Packaging offers transparent sourcing audits that identify where savings are still possible. -
Optimize design.
Simplify structures, reduce components, or standardize closures. Even small design tweaks can offset tariff-driven price hikes. -
Plan for compliance.
Use structured data and documentation (like spec sheets and certificates) to maintain traceability and prove origin — critical for future tariff exemptions. -
Advocate for local reinvestment.
Support policies that incentivize U.S.-based packaging production — plastics, glass, and paper alike.
🧠The MSN Packaging Perspective
At MSN Packaging, we understand how complex global sourcing has become.
We help American brands:
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Secure compliant, child-resistant packaging
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Maintain consistent supply amid tariff uncertainty
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Balance quality and cost through smart sourcing
We believe in supporting American manufacturers by keeping them competitive — whether that means sourcing from certified overseas partners or leveraging U.S. options when available.
🔍 The Takeaway
Tariffs alone won’t bring manufacturing back to U.S. soil. Not yet.
Until domestic packaging production scales up, tariffs risk punishing the very companies they were meant to protect.
If your product is made in America, you deserve packaging solutions that don’t compromise your margins or your mission.
📦 Learn more about how MSN Packaging can help you navigate today’s tariff-driven supply chain — with quality, compliance, and global expertise.