Procurement
The Strategic Role of Procurement in Navigating Tariffs: Implications for the Packaging Industry
If you work in procurement in the global packaging industry, 2025 is not business as usual.
It’s a year where US tariffs – some as high as 15% on EU packaging materials and machinery and far higher on selected Chinese imports – are testing every assumption about how and where we source. But the bigger story isn’t the tariffs themselves. It’s how they have pushed procurement – long a critical, strategic function and a driver of business value – even further into the spotlight, with heightened influence not only on the economics of packaging but also on the experience of the end consumer.
In this article I explore the evolving challenges of US tariffs on the global packaging industry and discuss the face of procurement leadership required to navigate this complex landscape.
The Tariff Environment as a Strategic Inflection Point for Procurement
The increased volatility and uncertainty created by changing tariffs have not created procurement’s strategic role but rather amplified it. Procurement leaders have always been responsible for balancing risk, value and resilience. Now, they must also act as geopolitical analysts, trade policy interpreters and brand guardians.
Switching suppliers is no longer a simple exercise in cost reduction; it’s a decision that ripples through marketing, operations and even consumer sentiment. As Fastmarkets notes, the European paper and packaging sector is already modelling new sourcing pathways to mitigate the impact of duties.
Boards are starting to ask in interviews, Can you hold market share in a tariff storm? Can you rebuild a supply network in 90 days without losing quality?
Managing the Interplay Between Cost Efficiency, Product Quality and Brand Equity
In premium packaging the substrate choice isn’t just about cost, it’s about the unboxing moment. Tariff-driven material changes can subtly, but powerfully, change a consumer’s perception of quality.
As Creative Retail Packaging highlights, some brands are facing the prospect of using alternative materials that meet tariff requirements but compromise the tactile brand experience. In best practice environments procurement has always been central to these brand conversations and tariffs only make the stakes clearer, as leaders weigh P&L considerations against long-term loyalty.
Institutionalising Scenario Planning Through Cross-Functional Tariff Response Frameworks
In many global packaging companies, procurement has taken a seat in what are being dubbed “tariff war rooms”. Here, procurement, operations and finance run live models: If pulp tariffs increase by 10%, which mills can we switch to? How will that affect lead times? Which customers will feel it first?
This mirrors strategies seen in other sectors, where companies like Amcor are actively adjusting their global supply networks and acquisition plans to offset trade pressures.
Aligning Sustainable Objectives with Tariff-Driven Constraints
The quickest tariff workaround is often a longer shipping route, a substitute material or changing to regional or local suppliers. But longer routes raise carbon footprints, and some substitutions compromise recyclability or reduce post-consumer appeal.
Some procurement teams are finding creative solutions – such as regional sourcing or investment in recycled materials – that allow them to meet both tariff and ESG objectives. This is not a new balancing act for procurement, but the tariff environment magnifies the need for leaders who can embed sustainability into strategic sourcing decisions.
Assessing the Wider Market Consequences Beyond the Packaging Sector
Procurement’s tariff decisions in packaging don’t just impact the packing industry; they have a ripple effect into the consumer markets.
- Retail pricing: Challenges in manufacturing can translate into noticeable price changes for end consumers.
- Brand experience: A slightly thinner carton board or a less tactile finish may save cost, but it can dull the customer’s sense of value. In luxury, that can mean the difference between repeat purchase and churn.
- Sustainability perception: Consumers are quick to spot if brands backtrack on environmental claims, which can happen when procurement shifts materials under tariff pressure.
Procurement has always indirectly shaped everything from supermarket shelf appeal to online unboxing experiences, however, tariffs make this influence more visible and more decisive in determining the health of entire consumer categories.
Defining the Procurement Leadership Profile for a Tariff-Impacted Future
The tariff era has created a new kind of procurement leader in global packaging – part strategist, part diplomat, part innovator.
They interpret trade policy with precision, anticipating shifts and preparing strategies before market pressures take hold. They engage effectively with marketing, finance and operations, aligning procurement decisions with broader business objectives.
Crucially, they approach procurement as a driver of strategic value – leveraging tariff-related challenges to:
- Reinforce supply chain resilience
- Enhance supplier partnerships
- Shape the customer experience
Final Thoughts
US tariffs are not a temporary disruption. They are a persistent factor shaping the business environment. For organisations where procurement has always been a strategic seat at the table, the function now commands even greater authority, influencing decisions with the same weight as finance or marketing. In this context, procurement is not merely a function of cost management; it is a critical driver of business strategy and operational resilience.
For leaders, this means that the skill set required in 2025 goes beyond traditional sourcing expertise. Boards are looking for professionals who can interpret complex trade policies, manage supplier risk and align procurement decisions with broader business and brand objectives. Strategic thinking, cross-functional communication and scenario planning are now essential capabilities.
Organisations must ensure they have the right talent in place to navigate the uncertainty created by tariffs and leverage procurement as a competitive advantage.
If your business is reviewing its leadership strategy or assessing talent requirements in this evolving landscape, please get in touch to discuss how to build a leadership team that is equipped to meet these challenges.
