Why Packaging Data Is Your Best Line of Defence Against Tariff Shock

With the Trump tariffs once again reshaping global trade flows, packaging decisions have gone beyond the operational. They're now strategic.

Rising import costs, shifting supplier dynamics, and geopolitical volatility are converging to create an unpredictable environment. In the throes of all of this uncertainty, data isn't just helpful. It's essential.

Businesses that understand their packaging specifications and procurement strategy can act decisively, reduce cost exposure, and secure supply from local markets.

Here's how clarity on packaging can be your competitive edge in turbulent times.

Tariffs have changed the packaging game overnight

The new Trump-era tariffs have triggered a fresh wave of supply chain recalibration. As of May 2025, tariff rates on Chinese goods were temporarily reduced from 145% to 30%, and U.S. goods entering China dropped from 125% to 10%. But the relief is time-bound for just 90 days and applies inconsistently across regions and materials. For packaging, that means paper, plastic, aluminium, and machinery could become 25% more expensive overnight, depending on origin and compliance status.

And who knows were they'll be tomorrow, next week, or next month.

For many businesses, this unpredictability is more than an inconvenience. It is a serious financial risk. Imagine budgeting for $100,000 in paper bags and facing a surprise 25% cost increase. That extra $25,000 hits your bottom line hard, especially when packaging is already a significant cost driver for high-volume consumer goods.

The real cost of not having a packaging strategy

You can't control tariffs. What you can control is your preparedness.

Too often, businesses treat packaging like a black box. They leave decisions to third parties without fully understanding what materials are being used, why they are used, or at what specifications.

This lack of visibility becomes a serious liability when tariffs hit. Without precise data on your packaging materials and formats, you are flying blind when forced to make quick decisions about switching suppliers or sourcing locally.

And let's be honest. The cost of packaging, while not negligible, is still a relatively small proportion of your product's total cost. That means you likely can't justify huge team or capital investments to buffer every packaging cost increase.

Your real lever isn't absorbing cost. It is strategic clarity.

Data-driven procurement reduces exposure

Knowledge is power. When businesses have a clear packaging strategy that includes defined materials, consistent specifications, the all-important provenance and an understanding of why certain formats are used, they are in a better position to act.

This clarity does more than streamline internal decision-making. It empowers your procurement teams to move quickly and confidently in the market, even when volatility strikes.

Such as:

• Switching to local suppliers: If you know exactly what your packaging is made of and how it performs, you can source equivalent options locally and avoid tariffed imports altogether.
• Negotiating with confidence: Detailed packaging data gives you leverage with suppliers. You're not asking them to "just make it work." You're asking for something specific, which speeds up everything from pricing to sampling to approval.
• Regulatory reporting and compliance: With APCO reporting requirements tightening, packaging data is not just a procurement tool. It is a compliance imperative. A unified dataset on materials and performance helps you demonstrate alignment with sustainability targets and regulatory standards.

Clarity wins out in this landscape

In this era of tariff-driven volatility, clarity equals agility. A well-documented, intentional packaging strategy allows you to shift quickly in response to changes without compromising on quality or sustainability.

Businesses that have this strategy in place are not just better equipped to ride out the storm. They are positioned to outperform competitors who are still scrambling to figure out their packaging basics.

Packaging strategy also feeds into broader brand resilience. Consumers care about sustainability and local sourcing more than ever. Being able to trace your packaging materials, explain why they were chosen, and pivot transparently when tariffs require builds trust and loyalty.

Building resilience into your packaging playbook

If your packaging still lives in spreadsheets and PDFs across different departments, it's time for a system-level rethink.

Here are four practical actions to build a resilient packaging future:

1. Audit your current packaging: Catalogue materials, formats, and specifications. Understand what you're using and why.
2. Set clear material standards: Decide what you will and won't use moving forward. Tie this to sustainability and sourcing goals.
3. Build supplier flexibility: Work with partners who can meet your spec across geographies so you can pivot when tariffs change.
4. Leverage tools like Phantm's Packaging Technology: Platforms like Phantm help businesses consolidate packaging data, streamline procurement, and communicate sustainability progress.

A trusted guide

The Trump Tariffs may only last 90 days, or they may extend well into the next administration. Regardless of what happens next, businesses with a clear packaging strategy, complete material data, and agile procurement processes will have the edge.

At Phantm, we believe that clarity and data are your most powerful tools in turbulent times. Whether it's reducing cost exposure, improving compliance, or accelerating your sustainability journey, a resilient packaging strategy starts with understanding what you're using and why.

Phantm is here to help you build that clarity.

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