Tariff War Falls, Flexible Packaging Industry Turns Around

Under the continuous negotiations of various governments, the tariff war that swept the world has finally come to an end. For the flexible packaging industry, which is mainly export-oriented, this Sino-US trade war has undoubtedly brought far-reaching impacts. As a manufacturer focusing on water-based ink flexible packaging, Zhongjia Printing has always paid attention to the international situation during this uncertain period, and actively maintained communication with customers to seek stable development for long-term cooperation. This blog will analyze the impact of the tariff war on the flexible packaging industry from multiple perspectives, and explore the future development direction and corporate response strategies.

Tariff War Review: Global Supply Chain Under Pressure

The core focus of this trade friction is undoubtedly China and the United States. The US government’s move to increase tariffs has caused global market fluctuations, and governments have formulated response strategies. Southeast Asian countries have a relatively flexible export commodity structure, and the overall impact is relatively small, and some exporting countries have even taken the opportunity to expand their market share. European countries have launched countermeasures due to direct competition with the United States in high-end manufacturing. China has responded with a reciprocal tariff policy.

For China’s flexible packaging industry, this tariff war has brought two direct challenges.

Industry Impact 1: A Sharp Increase in Raw Material Costs

Some key raw materials, such as chemical additives and catalysts in adhesives, need to be imported from the United States. Under the pressure of high tariffs, import costs soared, causing the overall production cost to double the original. At the same time, it is difficult to find alternative supply sources in the short term, which further increases the operating pressure on flexible packaging manufacturers. This puts higher requirements on the integration and autonomy of the entire water-based ink flexible packaging supply chain.

Industry Impact 2: Customer Orders and Procurement Transfer

On the other hand, the increase in the US market tax rate on Chinese export products directly pushed up the terminal price. Consumers find it difficult to accept price increases, and channel sales are hindered, and some customers cannot afford the additional costs and have to turn to other low-tariff countries for procurement.

When the tariff reached 20%, Zhongjia Printing had several in-depth communications with some US customers, trying to share part of the tariff and maintain cooperative relations. But when the equivalent tariff rate was raised to 50%, it was seriously beyond the acceptable range, and some orders had to be suspended.

Persistence and Communication: Finding the Greatest Common Divisor of Cooperation

Faced with external pressure, Zhongjia Printing actively launched response actions: closely communicating with overseas customers and tracking global trade policy trends; at the same time, communicating with domestic peers to jointly explore response strategies. We are well aware that the modern economy is highly globalized, and long-term conflicts will only lead to a wider range of industrial chaos.

Fortunately, China and the United States reached a preliminary settlement in the middle of this month. Although the details have not yet been made public, the global supply chain has finally ushered in a breathing opportunity, and the flexible packaging industry is expected to gradually restore confidence and stability.

New Opportunity: Environmental Protection and Sustainable Packaging Become the Focus

With the increasing global attention to green packaging, water-based ink printing technology has become the mainstream trend in the flexible packaging industry due to its advantages, such as low VOCs emissions and no solvent pollution.

Zhongjia Printing is the practitioner of this trend. The company transformed into an environmentally friendly water-based ink flexible packaging manufacturer long before the tariff war, insisting on “sustainability, low carbon, and innovation” as the core of development.

Why Choose Zhongjia Printing?

• Focus on environmentally friendly packaging: using water-based ink printing technology, pollution-free, and safer
• International quality assurance: many years of export experience, in line with multiple international standard certifications
• Quick response service: flexible production scheduling to meet diverse customer needs
• Sustainable supply chain: support environmentally friendly material procurement and recyclable packaging development

Hope for world peace and hope that global trade will return to a rational development track. Zhongjia Printing will work side by side with global customers to create a win-win cooperation future.