Tariffs could have significant impact on packaging, says expert

Walk into any store, and nearly everything — except produce — comes in some sort of package. Bottled water, cheese, electronics, even large appliances are wrapped in protective material to ensure that items are not damaged in transit.

Changes, such as tariffs in the global marketplace, have a ripple effect on packaging, says Laszlo Horvath, an associate professor in the College of Natural Resources and Environment at Virginia Tech and director of the Center for Packaging and Unit Load Design in the Department of Sustainable Biomaterials.

“Tariffs can significantly impact costs, Horvath said. “Many packaging molds, which can cost millions, are made overseas. If a company orders a mold from Europe or China, and tariffs increase before it arrives, they suddenly owe more money. This increased cost is then passed down to consumers.”

The potential impact of tariffs doesn’t stop there, Horvath said. Tariffs could even adjust shipping routes or the actual method of transportation.

“If a shipping route changes, packaging requirements may also change,” Horvath said. “For example, if a product that was originally shipped by sea now needs to be transported by rail, it faces different types of vibrations and impacts. Packaging designed for one mode of transportation might not be suitable for another.”

If a product is manufactured in Pennsylvania and shipped to Virginia, it spends minimal time in transit with limited handling. In contrast, a product made in China must first be transported by truck to a port, cross the ocean, arrive in California, travel by train to Chicago, and finally reach its destination. This significantly longer journey involves multiple handling points, increasing the likelihood of damage.

“Packages must be designed to withstand these conditions,” Horvath said. “Every time a package is handled, there’s a chance it will be dropped, compressed, or hit. Additionally, environmental factors like temperature and humidity fluctuations must be considered. A product moving from the humid climate of Costa Rica to the cold of Alaska needs packaging that can handle these extremes. So if a shipping route changes due to tariffs, there’s also the possibility of the packaging design to be revised to fit the new handling points, which could also increase costs for the consumer.”

About Horvath

Laszlo Horvath is an associate professor in the College of Natural Resources and Environment and the director of Virginia Tech’s Center for Packaging and Unit Load Design. His research interests include packaging sustainability, smart and connected packaging, and unit load Interactions, which is highlighted by generating information used to create a commercial pallet design software.

Horvath recently joined ⁠Virginia Tech’s “Curious Conversations”⁠ to talk about the complexities of packaging and the factors to be considered during packaging design. Horvath also shared insights related to affordability and sustainability as well as how international tariffs and other supply chain disruptions can impact packaging and ultimately customers.

Interview

To schedule an interview, please contact: Margaret Ashburn at mkashburn@vt.edu or 540-529-0814.