International Trade Tariffs are taxes that are used by governments to control the cost of imported goods and services. And are designed to protect domestic industries. The idea is to encourage a more robust, and self-sufficient domestic economy. However, for businesses in the U.S. who rely on imported goods and products from other countries, the unpredictability of trade tariffs policies can lead to higher prices and delays.
So, What's Happening Right Now? - The current administration has been attempting to negotiate international trade agreements with other nations, via the use of reciprocal trade tariffs. Unfortunately, the use of trade tariffs can have adverse affects on domestic businesses such as the packaging industry
How Will This Affect The Packaging Industry? – The packaging industry is heavily reliant on imported raw materials like metals, plastics, glass, and paper. And the addition of a tariff on those imported goods can cause ripple effects in the packaging industry. Often leading to higher costs, disrupted manufacturing processes, and longer lead-times for delivery.
How Will This Affect You, Our Customer? – We are doing our best to limit the impact of these new tariffs wherever we can. By seeking out local suppliers for our raw goods and accessory products. But there will be cases in which we cannot find domestic alternatives. In those situations, we will need to pass the tariffs on to our customers. For we cannot absorb the costs on our own.
Prices – Yes, the prices on some of our products that rely on imported raw goods will increase. Thankfully, most of the prices increases will be modest.
We will do our best to clearly indicate any tariff price increase to our customers. And we want to assure you that we are committed to removing any such pricing increases if and when the tariffs are adjusted down or terminated in the future.
Manufacturing Lead Times – For some products, the increased cost and difficulty in obtaining the goods needed, may cause delays and extended lead times. We commit to keep our customers informed of any changes that could affect manufacture and delivery timelines.
Inventory – We have had to make some adjustments on which products we can afford to keep on-hand in available inventory. This does NOT mean that these products are no longer available. But they may require a minimum order quantity for purchase, storage, and delivery.
Availability – Currently, the products most affected by the new trade tariffs are foil-lined closures, and our glass products.
How Can WE Help? – Did you know that we manufacture the majority of the plastic containers that we offer? That’s right. We MAKE most of the plastic containers that we sell. Right here in the United States. And we purchase our basic resin from local suppliers as well. Thereby eliminating any tariff cost increases for those products.
Our Commitment To Our Customers – At Aaron Packaging, we appreciate your trust in us. And thank you for your understanding and your patience as we navigate together through these uncertain situations.
Our customer service team is available to answer any questions and concerns that you may have.
