The 2025 packaging tariff crisis is here.

See how lidding films, induction seals, and foil pouches are affected – and how your business can adapt.

In 2025, the global packaging and manufacturing sectors are under renewed strain. A sharp 25% tariff on key flexible packaging materials is colliding with broader global trade disruptions, creating increased costs, disrupted supply chains, and an urgent need for strategic adaptation.

Flexible packaging—including aluminum foil, lidding films, pouches, and induction seals—plays a critical role in food safety, product integrity, and consumer convenience. As trade policies and tariffs reshape global commerce, companies relying on these materials face significant headwinds.

25% Tariff Targets Flexible Packaging

The newly implemented 25% tariff directly impacts imported aluminum-based flexible packaging materials. Key items affected include:

• Aluminum Foils used for snacks, dairy products, frozen meals, and prepared foods

• Lidding Films and Seals essential for single-serve coffee pods (e.g., Keurig), yogurt cups, and ready-meal trays

• Induction Seals and Closures for bottles and jars, particularly in food, beverage, and pharmaceutical products

• Flexible Pouches incorporating foil layers for food and consumer goods

These materials are heavily sourced from overseas suppliers, particularly in Asia. With global supply chains already recovering from pandemic-related disruptions, these tariffs sharply increase costs and delivery challenges.

Unresolved Supply Chain Challenges

The global flexible packaging supply chain continues to face bottlenecks, including:

• Extended Lead Times from manufacturing hubs, particularly in Asia

• Limited Domestic Capacity for specialized materials like thin-gauge foil and complex lidding structures

• Higher Freight and Logistics Costs, exacerbated by the shift to buffer stock strategies over lean inventory models

For companies in food and beverage, CPG, and healthcare, these delays threaten product launches, shelf stability, and customer commitments.

Trade Policy Shifts and Customs Complexity

Alongside the tariffs on flexible packaging materials, broader trade policy changes are compounding challenges for importers. A “reciprocal tariff plan” has introduced a 10% baseline tariff on all imports, with additional rates for over 60 countries based on trade deficits.

Key Trade Policy Elements:

• Section 232 Tariffs Continue and Expand: Tariffs on steel and aluminum remain and could extend to copper, timber, and other materials critical to flexible packaging infrastructure.

• Duty Drawback Limitations: While allowed for reciprocal tariffs, duty drawback is not permitted for Section 232 tariffs, complicating cost recovery for importers relying on overseas materials.

• Complex Customs Compliance: Importers must declare specific tariff rates per shipment, increasing administrative complexity and risk of errors.

• Global Retaliation: Countries including China, Canada, and the EU are imposing counter-tariffs on U.S. exports, amplifying supply chain disruption.

Industry-Specific Risks

The impact of these combined pressures falls heavily on packaging-dependent sectors:

Flexible Packaging in Food and Beverage

• Snack brands, dairy producers, and ready-meal companies rely on imported lidding films and pouches for shelf life and product integrity.

• Coffee and single-serve manufacturers face challenges securing heat-sealable foils for capsules and pods.

Consumer Goods and Healthcare

• Nutraceuticals and pharmaceuticals depend on induction seals and flexible foil pouches for safety and compliance.

• Home and personal care brands use flexible packaging for premium and resealable formats.

Manufacturing and Exporting Firms

• OEMs using aluminum, copper, and foil-based materials face rising input costs and global sourcing complications.

Legal and Legislative Pushback

The aggressive use of trade policy to enforce tariffs is drawing scrutiny from Congress and business leaders. Legal challenges are in discussion, with potential litigation focused on the constitutionality and economic impact of these trade measures. While some countries are pushing for negotiations, the overall trade environment remains volatile and unpredictable.

Strategic Actions for Business Leaders

Adapting to this rapidly changing landscape requires both short-term agility and long-term strategic planning.

Critical Steps for Flexible Packaging-Dependent Businesses:

• Audit Supply Chain Exposure: Identify which flexible packaging SKUs are affected by tariffs and assess the financial impact.

• Source Alternatives Proactively: Explore nearshore or domestic suppliers for foil, lidding films, and flexible pouches, even at higher initial cost.

• Redesign Packaging Where Feasible: Consider shifting to materials less affected by tariffs—such as recyclable plastics, paper-based solutions, or compostable films—but evaluate compliance, functionality, and branding implications.

• Upgrade Customs and Compliance Processes: Work with brokers and legal advisors to navigate new customs declaration requirements and ensure accurate tariff applications.

• Monitor Legal and Policy Developments: Stay ahead of potential litigation, trade negotiations, and regulatory updates that could shift the tariff landscape.

Flexibility in Packaging and Policy is Essential

The combination of 25% tariffs on flexible packaging materials and broader global trade tensions is reshaping global commerce. Costs are rising, delivery timelines are uncertain, and compliance demands are intensifying.

For businesses that rely on flexible packaging—whether in food, beverage, healthcare, or consumer goods—this environment demands proactive planning, strategic sourcing, and operational flexibility. Those who act now to build resilient supply chains and adaptive packaging solutions will emerge stronger, even as the trade landscape continues to shift.

Take Action Now: Strengthen Your Packaging and Supply Chain Strategy

Facing new tariffs, uncertain global sourcing, and rising material costs, it’s not just about weathering the storm—it’s about building a supply chain and leadership team ready to thrive amid disruption.

Connect with Chase & Associates to secure top supply chain, packaging, and operations talent who can help your company adapt, innovate, and succeed in today’s volatile trade environment.