New Jersey businesses are facing rising costs and increasingly complex supply chains. Among the key contributors to these challenges are packaging tariffs, which have significantly increased the cost of critical packaging materials. These tariffs affect a wide range of industries, driving up expenses for plastics, paper, and metal packaging and forcing companies to reconsider their pricing and operational strategies. Learn more about packaging tariffs and their impact on New Jersey businesses below.
What Are Packaging Tariffs?
Definition and Overview
Packaging tariffs are government-imposed taxes on imported packaging materials such as plastics, metals, and paper. While these tariffs are designed to protect domestic producers, they often raise costs for companies that rely on international materials. For New Jersey manufacturers, distributors, and retailers, tariffed packaging components like plastic containers, corrugated boxes, and aluminum cans are now more expensive to procure.
Recent U.S. Policy Changes
Two key U.S. tariff programs currently affect packaging imports:
- Section 301 tariffs: Target imports from China, including plastics and paper packaging.
- Section 232 tariffs: Apply to steel and aluminum packaging products.
These policies continue to impact 2025 business operations by introducing cost volatility. Updates to U.S. tariff codes and customs tariff classification guidelines have added complexity, requiring businesses to carefully monitor compliance and evaluate sourcing risks.
Packaging Tariffs and NJ Business Costs
The financial effects of packaging tariffs vary by material type. Whether using plastic wraps, cardboard boxes, or metal cans, New Jersey businesses are seeing increased costs that affect profit margins and pricing models.
Plastic Packaging Materials
Plastics like polypropylene and polyethylene (common in films, wraps, and containers) face a 25% tariff under Section 301 if imported from China. This poses challenges for industries like food and beverage or healthcare, which depend on these materials for safety and product integrity. Many businesses must choose between absorbing added costs or passing them along to customers.
Paper Packaging Materials
Corrugated cardboard boxes, folding cartons, paperboard, and other products under HTS codes 4819 and 4821 are subject to tariffs of 10% to 25%, depending on their origin. E-commerce, logistics, and retail companies are especially vulnerable, as paper-based materials are critical to daily operations and shipping.
Metal Packaging Materials
Under Section 232, aluminum packaging materials face a 10% tariff, while steel packaging is taxed at 25%. This affects beverage producers, electronics companies, and industrial suppliers that rely on durable containers. Even with some exemptions in place, most imports are taxed, impacting pricing and supply chain strategies.
Industries Most Affected in New Jersey
Food & Beverage
New Jersey’s food and beverage producers depend on affordable, high-quality packaging materials to meet safety and freshness standards. With rising aluminum, plastic, and paper costs due to tariffs, many companies have reduced margins or raised product prices. Others are experimenting with alternative packaging formats to stay profitable.
Healthcare & Electronics
Tariffs have hit healthcare and electronics manufacturers especially hard. These industries require precise packaging materials to protect products from contamination or damage. Supply chain disruptions and rising costs have forced many companies to redesign packaging or find alternative suppliers to cut costs.
Retail & Consumer Goods
Retailers and consumer brands are also grappling with tariff-related increases in packaging costs, particularly for custom and branded solutions. With many products requiring multiple layers of packaging, the compounded cost can be significant. As a result, companies are shifting to simpler packaging or sourcing domestically to reduce tariff exposure.
Cost-Saving Strategies for NJ Companies
To offset rising packaging costs, New Jersey businesses can take proactive steps such as sourcing from domestic suppliers or those based in countries without tariffs. While this may involve reevaluating contracts or adjusting supply chains, shifting away from tariffed imports can significantly reduce long-term expenses.
Another effective strategy is to optimize packaging design. Custom packaging that uses fewer materials can help lower costs and reduce tariff exposure. At Deluxe Packaging, we collaborate with businesses to develop efficient, cost-effective packaging designs that support both budget and sustainability goals.
Partner With Experienced Packaging Firms Like Deluxe Packaging
Packaging tariffs continue to raise costs for New Jersey companies, affecting materials from plastic and paper to aluminum and steel. By adjusting sourcing strategies and optimizing packaging design, companies can better manage these financial pressures. Deluxe Packaging offers custom, cost-effective solutions to help businesses stay competitive. Contact us to learn more about how we can support your packaging needs.