Riding The Tariff Roller Coaster… Again!

If there’s one thing we’ve learned about tariffs, it’s this:

They have a remarkable ability to turn a perfectly reasonable packaging order into a very unreasonable invoice.

For businesses in the food and retail industries, packaging is already a significant part of the supply chain. Add a sudden 50% tariff to certain paper and plastic products crossing the Canada-U.S. border, and the math can change very quickly.

So, what do we do as a packaging broker when tariffs start throwing a wrench into the works? We get to work.

The Border Can Change the Math

One of the biggest advantages of working with a packaging broker is our network. We work with vetted manufacturers in Canada, the United States and beyond. That means we're not tied to one factory or one sourcing strategy.

Historically, it has made sense for some of our Canadian clients to purchase packaging manufactured in the U.S., and some of our American clients have sourced packaging from Canadian manufacturers. When borders were relatively straightforward, that could be a great solution. But when an affected product crosses the border and suddenly picks up an additional 50% tariff, the equation changes.

We are fortunate enough to have an extensive network of suppliers but we continue to vet new domestic manufacturing partners to provide additional options for our clients, whether they reside in the U.S. or Canada. In other words, we're not sitting around waiting for the tariff situation to sort itself out.

We're Asking What's Behind the Packaging

There's another question we're asking our manufacturing partners:

"Where does your material come from?"

Why does that matter? Because the location of the finished packaging isn't necessarily the whole story. Understanding the supply chain behind the product gives us a better picture of where potential tariff exposure could exist.

We're asking more questions, gathering more information and working to give our clients a clearer picture of what they're actually buying. In an uncertain trade environment, transparency matters.

Sometimes the Best Decision Is to Hit Pause

One recent example really illustrates why we're taking this approach.

We had a Canadian client preparing to place a short-run order for hot cups for the holiday season. The cups had specific artwork, and the project was moving forward as planned.

Then the tariff situation changed. Suddenly, the product was potentially subject to the new 50% tariff. Nobody likes discovering that kind of thing after an order has already been produced, so instead of pushing ahead and presenting our client with a dramatically higher cost, we offered to put the order on pause.

We're closely watching the situation and exploring whether there's a viable way to run the order without exposing the client to an unreasonable cost. And if it turns out that we can't make the numbers work, we will cancel the order without charges or fees to the client.

Could we simply manufacture the cups, add the tariff to the bill and call it a day? Of course, but that's not how we operate. Our job is to find the best solution for our client, not simply the easiest solution for ourselves.

We Take on the Uncertainty So Our Clients Don't Have To

Our clients are busy running restaurants, food companies, retailers and other businesses. They shouldn't have to become international trade experts just to figure out how much their custom packaging is going to cost, and we don't expect tariff uncertainty to disappear overnight. Instead, we're preparing for a packaging environment where flexibility matters more than ever.

Enter, Georgette Packaging! We handle as much of that uncertainty as we can on their behalf. Here is how:

• More supplier diversification. We don't want our clients dependent on a single manufacturing source.

• Deeper sourcing transparency. Understanding where materials come from is becoming increasingly important.

• More domestic manufacturing. When it makes financial and logistical sense, producing closer to the end customer can help reduce cross-border exposure.

• Ongoing monitoring. Tariffs and trade policies can change, so we're keeping an eye on developments rather than treating sourcing decisions as "set it and forget it."

• Contingency planning. Whenever possible, we want to know what Plan B looks like before Plan A gets disrupted.

The goal isn't to predict exactly what will happen next. If anyone could reliably predict tariffs, they'd probably be doing something considerably more glamorous than talking about hot cups and paper bags all day. Our goal is to be ready to adapt when things change.

On The Tariff Roller Coaster, Your Packaging Broker Is Your Seat Belt

We'll do the digging, make the calls, investigate the options and help you figure out the path forward. We have experience, relationships, a network of manufacturers and the willingness to do the legwork.

That's the real value of having a packaging broker in your corner during a period of trade uncertainty. You don't have to navigate the uncertainty alone. Because at the end of the day, our job isn't just to help you buy packaging. It's to help you get the packaging you need at a price and through a supply chain that makes sense for your business. In the current tariff environment, that's never been more important.

So hop on, click here to connect with your new packaging bestie, and we’ll ride through this together! And if you are a Canadian business owner, check out our Refer Canada program to support your fellow Canadians.