• New Tariffs Now in Effect: Country-specific IEEPA reciprocal tariffs are live as of August 7, replacing earlier “Liberation Day” rates. Tariffs now range from 10% to 50%, based on country of origin.
• Some Countries Successfully Negotiated Lower Rates:
  • Vietnam: 46% → 20%
  • Cambodia: 49% → 19%
  • Other drops: Bangladesh, Indonesia, Pakistan, Thailand
  • These remain viable sourcing regions—but still carry higher risk than USMCA countries.
• Others Face High Ongoing Tariffs:
  • China and Brazil: Now at 50%, impacting packaging, apparel, and consumer goods
  • India: 25%, with no exemptions
  • Switzerland: Up to 39%
  • Canada: 35% on non-USMCA-eligible goods
• European Union Assigned a Tiered, “Top-Up” Tariff Structure:
  • EU countries received target effective tariff rates (up to 15%)
  • If a product’s MFN rate is already ≥15%, no additional U.S. tariff applies
  • If MFN <15%, the U.S. applies a “top-up” duty to reach that thresholdCountry of manufacture within the EU now matters more than ever
•  USMCA Countries Remain Largely Exempt:
  • Canada and Mexico remain duty-free—if goods meet rules of origin
  • Critical advantage for brands sourcing packaging, totes, and apparel in North America
• 40% Transshipment Penalties Are Being Enforced:
  • CBP is cracking down on goods routed through low-tariff countries (e.g., Vietnam, Malaysia, Thailand) without proper transformation
  • Offenders may face a 40% penalty tariff
  • Brands must demand verifiable documentation (e.g., Certificates of Origin)
• Tariffs Apply Across All Product Types:
  • IEEPA tariffs are not HTS-code specific
  • Affects everything from woven totes and mailers to apparel and boxes
  • Applies to most goods imported from targeted countries—regardless of material or use
• De Minimis Threshold Is Being Phased Out:
  • The $800 duty-free exemption for small shipments is on the way out
  • Brands relying on low-value direct-to-consumer imports (like dropshipping) should prepare for rising costs

1. Audit Your Packaging Supply Chain by Country of Origin: Create a clear, SKU-level map of where all your packaging components are manufactured.

2. Calculate Tariff Exposure by Product: Use your suppliers’ HTS codes and invoice values to estimate baseline (MFN) tariff costs by country. Then overlay reciprocal tariff rates, which apply broadly by country of origin, regardless of product category of HTS code.

3. Identify Opportunities to Onshore or Nearshore: Reassess the business case for switching to U.S. or USMCA-based supply chains. For qualifying goods from Canada or Mexico, tariff-free access is still protected under USMCA.

4. Vet Overseas Partners for Transshipment Risk: If you’re importing from Vietnam, Malaysia, or Cambodia, ensure that goods aren’t being rerouted through third countries. Improper routing may trigger a 40% penalty tariff under CBP enforcement.

5. Work with Partners Who Can Offer Dual Sourcing Paths: Engage suppliers like EcoEnclose, which has a strong and well-developed domestic manufacturing network for packaging and well-vetted international production options (for high-volume enterprise packaging needs). We can help you manage tariff risk even as sourcing realities shift.

6. Evaluate How Tariffs May Impact Product Packaging Design: Consider revising packaging specs (e.g. moving from imported textiles to paperboard) to reduce reliance on high-tariff inputs or optimize toward U.S. made alternatives.

7. Expect Further Volatility: Everything written here could change on a dime! Recent court rulings and shifting White House guidance mean this landscape will remain dynamic. Design your sourcing and packaging plans to be agile, not static.

If you're importing raw materials, packaging or finished goods for business use (e.g., custom-printed mailers), your small carrier shipments will likely be treated as commercial imports, making tariffs and customs documentation likely.

Who Pays? The recipient (importer) in the U.S.—whether a business or individual—is responsible for paying any applicable tariffs, duties, or taxes.

How Are They Collected? FedEx, UPS, and DHL (Private Couriers) act as customs brokers. They pay duties and tariffs on your behalf at customs and then invoice the recipient (you or your business). Delivery is typically held until payment is made, or charges are billed post-delivery, depending on your account terms.

USPS (and foreign posts via USPS) do not act as a customs broker similarly. Instead, the U.S. Customs and Border Protection (CBP) assesses the duties. USPS may deliver the item with a bill for duties due (usually via a paper notice or upon delivery), or packages may be held at a local post office until the duty is paid.

The European Union stands out in the IEEPA reciprocal tariff rollout. Rather than assigning one flat tariff rate to the entire EU bloc, the U.S. implemented a tiered structure, assigning different target tariff levels to individual member states. Countries like Germany, France, and Italy were in the highest tier, while others like Ireland and the Netherlands landed in lower tiers or received no increase.

But there’s another layer: the U.S. didn’t apply these tariffs as simple add-ons. Instead, the EU’s IEEPA tariffs were structured using a “minimum effective rate” model. That means the U.S. set a target effective tariff for each country, then subtracted the product’s existing MFN (Most Favored Nation) rate to determine how much additional tariff, if any, was needed.

For example, if the target effective tariff for a country like France is 15% and a product already faces a 6% MFN rate, the IEEPA tariff would be 9%. However, if the MFN rate is already at or above the target, no IEEPA reciprocal tariff will be added.

As a result, some EU-origin goods are seeing meaningful increases, while others, especially those already subject to high base tariffs or with favorable tiers, are seeing little to no change. This approach favors EU countries that already allow strong U.S. market access and penalizes those with larger trade surpluses or perceived regulatory barriers.

For brands sourcing from the EU, this means two things:

• First, it matters which specific country your goods are manufactured in. Germany and Ireland are no longer tariff-equivalent.

• Second, looking up your product’s MFN tariff rate is essential to understand whether any additional IEEPA tariffs will apply.

The bottom line is that the EU’s treatment under IEEPA is more nuanced than that of many other nations. Sourcing decisions once straightforward within the EU may now require country-specific analysis and HTS-level tariff forecasting.

While the IEEPA reciprocal tariff rates announced on August 1st are now in effect, this framework is still highly fluid. Many countries received their final rate through opaque negotiations, diplomatic pressure, or political posturing rather than hard-and-fast trade data. As a result, we anticipate further rate adjustments in the coming months. The following countries are worth watching closely.

• Vietnam: Initially threatened with a 46% tariff, Vietnam landed at a moderate 20%. However, given its rising importance to U.S. supply chains (especially apparel and packaging), and the strategic need to reduce dependence on China, many expect this rate to fall further, especially if Vietnam expands trade cooperation or signs a formal agreement.

• India: With a 25% tariff rate, India is considered a critical manufacturing partner for U.S. consumer goods and pharmaceuticals. Both governments are in ongoing dialogue, and intense business community pressure exists to lower tariffs. Watch for a possible reduction if a bilateral deal is struck.

• European Union (esp. Germany, France, Italy): The EU avoided steep penalties (with rates at 0–15%), but some member states are still concerned. A formal agreement or retaliation could drive changes, either up or down, depending on how trade talks evolve this fall.

• Indonesia & Malaysia: At 18–19%, these countries were hit harder than expected. Their alignment with U.S. trade norms and their value as China alternatives could lead to pressure for lower rates, particularly if the U.S. is looking to stabilize consumer product prices heading into an election year.

• Canada: While most Canadian goods remain exempt under USMCA, non-qualifying imports are now subject to a steep 35% tariff—one of the highest among U.S. allies. This unusually high rate may be a strategic move to enforce strict USMCA compliance or pressure Canada on long-standing trade tensions in sectors like lumber, dairy, and aluminum. Given Canada’s close economic ties with the U.S., and the political sensitivities involved, this rate could be subject to negotiation or adjustment—especially if U.S. businesses push back. Brands should monitor this closely and double down on verifying USMCA eligibility.

• Thailand, Cambodia, Bangladesh, Pakistan: While their current rates fall in the 18–21% range, these nations are often flagged for weak labor protections, lack of IP enforcement, or growing ties with China. If the U.S. escalates its push against “unfair” trade, these countries could face higher tariffs or new conditions.

• Mexico: Increased scrutiny of rules of origin, transshipment concerns, or political shifts could cause certain goods of Mexican origin to lose their preferential status or become caught up in Section 301 reviews.

• Brazil: With a 50% reciprocal tariff and ongoing friction over agricultural access, Brazil may remain a trade target. But if negotiations improve, it could also be a candidate for recalibration.

• Switzerland and South Africa: These countries may lobby for reductions despite facing unexpectedly steep tariffs (39% and 30%). However, change is uncertain if significant trade volume or geopolitical leverage is absent.

• China: While unlikely to see lower tariffs soon, China’s central role in global supply chains means any diplomatic breakthrough could dramatically shift the trade landscape. On the flip side, further escalation is also possible.

For example, corrugated boxes have a different HS code than poly mailers or padded mailers.

This code determines duty rates, tax applicability, and regulatory requirements.

Here is a list of HS Codes for the majority of packaging we sell and ship:

So, for example, a paper mailer made in the US from recycled paper sourced in Canada and meeting the product-specific rule (like tariff shift or value content requirements) would qualify as USCMA-eligible under Preferential Criteria: C.

At EcoEnclose, domestic manufacturing has always been central to our sustainable packaging vision. We’re working toward a future in which all packaging is made from packaging—and can become packaging again in its next life.

To make that future a reality, we believe the U.S. must have a robust recycling and remanufacturing infrastructure that can collect, sort, and reprocess recycled materials right here at home rather than shipping them overseas. That’s why we’ve long prioritized sourcing and manufacturing domestically—not to shield ourselves from tariffs but to help build a truly circular economy.

That said, this commitment does offer a clear advantage in today’s volatile trade environment: for the majority of our packaging lines, neither EcoEnclose nor the brands we serve is directly affected by the latest wave of tariff increases.

For many enterprise EcoAlly brands that work with us on their high-volume mailer needs, their EcoEnclose packaging may be manufactured overseas. Decisions like this are always made in close partnership with our EcoAlly brands to support their unique cost or operational considerations.

If you are an enterprise brand whose EcoEnclose packaging is manufactured overseas, your account manager will be working closely with you to:

• Understand your exposure: We’ll assess how new tariffs impact your packaging costs based on country of origin and specific materials used.

• Assess total landed cost: Tariffs remain just one part of the cost equation. Other hard costs include the actual unit cost of your packaging, ocean and ground freight, and storage costs. Other business costs include lead times, print quality, and sustainability features such as recycled content and traceability.

• Explore alternatives: We’ll collaborate on possible shifts to domestic manufacturing, alternative overseas countries of origin, alternative materials, or design modifications that help minimize tariff impacts while meeting your operational and budgetary needs.

• Ensure compliance and stay true to your values: We'll help you navigate these changes while maintaining your commitment to sustainability, transparency, and responsible sourcing.

A very small number of our stock packaging solutions, such as our cello tape and hemp twine, are also manufactured overseas. We are working to minimize the long-term tariff burdens on our brands as much as possible.

Across the board, brands are asking big questions right now. You’re trying to understand:

1. How tariffs could reshape your cost structure,

2. Whether to make accelerated purchases during this 90-day pause, and

3. What portion of these costs, if any, to absorb vs. pass on to customers—and what that means for forecasts and pricing models.
   
   

One theme we keep hearing: how to reduce packaging costs without sacrificing your sustainability values.

If that’s where you’re at, let us help. Our team can:

• Work with you to identify cost-effective packaging options that align with your sustainability goals.

• Help you better communicate your sustainability efforts, so you can deepen customer loyalty and justify premium pricing where needed.

• Explore material changes—like switching to thinner paper, reducing packaging sizes, or shifting from paper to 100% recycled plastic—solutions that may even improve your environmental impact while saving costs.

Example: Bubble Mailers

A forward thinking cosmetics brand has been using 50% recycled bubble mailers manufactured in Malaysia. Tariffs are causing them to revisit their sourcing strategy. They are working with their EcoEnclose Account Manager to review US, Mexico, China and Malaysian options. The tariff rates vary drastically.

When unit costs and other hard costs are factored in, US and Mexico become stronger options (despite the fact that the US option has the highest unit cost associated).

After factoring in other soft costs, such as lead times, the ability to color match closely, and the ability to add PCR and a dual seal strip for returnability, the U.S. option emerges as the clear winner… for now.

As China and Malaysia tariff rates are revisited and potentially see reductions, they may become more favorable options. EcoEnclose is well-positioned to help large enterprise clients move to onshore manufacturing, while keeping the Malaysian option live longer-term as the tariff landscape evolves long-term.

If you’re a brand outside the U.S. and sourcing from EcoEnclose, we’re honored to be part of your sustainability journey.

We want to ensure you know that tariffs and import duties may apply to your shipments, depending on how your country responds to current U.S. trade policies.

When your order ships from our warehouse in Colorado, it crosses your country’s border and becomes subject to local customs and import regulations. This means:

• You, as the importer, are typically responsible for paying any customs duties, VAT/GST, and import tariffs that apply.

• These charges are based on the shipment’s declared value, the product classification (HS code), and your country’s tariff schedule for packaging materials.

If you’re unsure how this might affect your next order, we’re happy to help you anticipate and plan around these charges.