How to Manage Tariffs in Pharmaceutical Packaging
For pharmaceutical companies, sourcing packaging has become more complex in recent years. Tariffs on imported materials and printed components are creating pricing pressure, disrupting long-term contracts, and forcing many buyers to rethink where and how they source their packaging.
Whether you rely on overseas suppliers or work with a domestic partner who sources internationally, tariffs can affect the cost and availability of critical packaging components like folding cartons, blister packs, inserts, and corrugated shippers.
Here’s how to understand the impact—and what you can do to stay ahead.
Know What’s Being Taxed
Not all pharmaceutical packaging is affected by tariffs in the same way. Many of the items commonly used in pharma packaging fall under categories that have been hit with tariffs in recent U.S.–China trade actions.
These may include:
- Printed folding cartons and inserts
- Blister pack materials (including PVC and foil)
- Corrugated shipper boxes
- Labels and leaflets
- Some specialty coatings and substrates
Tariff rates can vary, depending on the material, country of origin, and current trade policy. What seems like a small increase per unit can lead to massive cost increases at scale.
Review Your Supplier’s Origin and Production Model
Even if your supplier is based in the U.S., they may still source raw materials, substrates, or finished packaging components from tariff-impacted countries.
It’s important to ask:
- Where is each component of my packaging produced?
- Does the supplier import printed materials or raw board?
- Are any secondary processes (like lamination or foil stamping) outsourced overseas?
Understanding your true supply chain origin helps you identify where the tariff risks are—so you can plan ahead.
Reevaluate Total Cost of Ownership
Increased tariffs often eliminate the price advantage that used to come with overseas packaging. When you factor in:
- Tariffs
- Rising freight costs
- Port delays and longer lead times
- Quality control or communication issues
You may find that domestic packaging suppliers are now more competitive on both cost and reliability.
Talk to Your Packaging Supplier About Domestic Alternatives
If you’re concerned about exposure to tariffs, a proactive supplier should be able to:
- Offer U.S.-made or NAFTA-friendly alternatives
- Suggest design or material changes to reduce cost impact
- Help consolidate SKUs or adjust specs to simplify sourcing
- Provide packaging that meets FDA labeling and compliance requirements domestically
Shifting to U.S.-based production doesn’t always mean higher cost—it often brings improved supply chain visibility, faster lead times, and fewer surprises.
Factor Tariffs Into Long-Term Strategy
If you’re renegotiating contracts, launching new SKUs, or scaling production, factor tariff risk into your 12–24 month outlook. Ask your supplier:
- Can they lock in pricing or hold stock domestically?
- Do they have backup sourcing options if trade rules change again?
- Are they monitoring tariff changes and proactively communicating impacts?
Being reactive to tariffs leads to missed margins and production delays. Building flexibility into your packaging strategy now can protect your product pipeline later.
Final Thoughts
Tariffs are no longer a temporary nuisance—they’re a permanent part of global sourcing. For pharmaceutical brands, that means understanding where your packaging is coming from, how trade policy affects it, and what options exist to reduce risk and cost.
Looking for help minimizing tariff exposure on your pharmaceutical packaging?
We can walk you through domestic solutions, supply chain planning, and structural design adjustments to keep your product protected and your packaging program compliant.
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Padded Mailers: For smaller or more delicate items, padded mailers (with bubble wrap or foam lining) offer extra cushioning while being compact. Rigid Mailers: For documents or flat items that need to avoid bending, rigid mailers are a good choice to protect against damage during transit. By choosing materials that are appropriate for your product’s size and fragility, you can significantly reduce the risk of damage. Use Protective Inserts Inserts provide an extra layer of protection inside the packaging. They help to secure the product in place and absorb impact from movement or drops during transit. Foam Inserts: Custom foam inserts or molded pulp inserts are ideal for protecting fragile or sensitive products like electronics, cosmetics, or glassware. Corrugated Dividers: For multiple items being shipped in the same package, corrugated dividers ensure each product is isolated and protected from collisions with other items inside the box. 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Right-sized packaging also reduces shipping costs by decreasing the dimensional weight of the package, benefiting both your bottom line and the environment. Secure Sealing Durability isn’t just about the box itself—secure sealing is essential to keep the contents safe and intact during transit. Reinforced Tape: Use heavy-duty packaging tape, especially for larger or heavier boxes. Water-activated tape (also known as gummed tape) provides a tamper-evident seal and is more durable than standard tape. Double-Sealing for Fragile Items: For extra protection, consider using multiple layers of tape or reinforcing vulnerable areas of the box, such as the corners and edges, where impacts are more likely to occur. Tamper-Evident Seals: These seals ensure that customers can identify whether the packaging has been opened or tampered with, offering an extra layer of protection and peace of mind. Test Packaging Durability Before committing to a packaging solution, conducting real-world durability tests ensures that your products are protected throughout the shipping process. Drop Tests: Simulate shipping conditions by performing drop tests from different heights to assess how well the packaging holds up to impact. Compression Testing: Test how well your packaging can withstand weight and pressure, especially for items that may be stacked during shipping or storage. Environmental Testing: For products shipped in extreme conditions (hot, cold, or humid environments), test how your packaging materials react to these conditions to ensure the product’s integrity remains intact. Testing helps you identify weak points in your packaging design and gives you the opportunity to make improvements before issues arise with customers. Consider the Entire Supply Chain Your product’s journey doesn’t end when it leaves your warehouse. 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Regular testing and adapting your packaging to the realities of the supply chain ensure that your packaging is fit for purpose and durable enough to handle the rigors of shipping. If you’re interested in ecommerce packaging, then partner with Brown Packaging today to get started. (714)300-0650 request@brownpackaging.com Most Recent Posts: Categories: Corrugated Ecommerce ESD Design