US-EU tariff deal: Packaging industry faces supply chain shocks and energy transition challenges

The US Government and the EU have announced an import tariff deal, imposing a 15% tariff on most goods entering the US from Europe, with the exception of steel which is still taxed at 50%. But while the agreement may have diffused a trade war, it risks sidelining shared priorities such as climate targets, circularity, and harmonized safety standards.

Packaging Insights delves into the tariffs’ potential consequences for the packaging economy and trade relations on both sides of the Atlantic. 

“This decision [to impose 15% import tariffs on EU goods] introduces a serious barrier for many EU packaging material providers, especially SMEs,” Iva Werbynska, European ambassador of the World Packaging Organization and managing director at the Czech and Slovak Packaging Institute SYBA, tells us. 

“The EU is a global leader in high-quality and sustainable packaging materials — from fiber-based solutions to advanced barrier technologies. A 15% tariff makes these products less competitive in the US market and may discourage transatlantic collaboration at a time when joint innovation is needed most.”

An environmental trade-off

For US packagers, Werbynska says the deal may lead to rising input costs, “particularly where local alternatives are limited or not yet aligned with circular economy goals.”

“We might also see delays in adopting sustainable innovations that originate in Europe.”

Werbynska expects the tariffs to pose a serious trade barrier for EU packaging material providers.

The deal also requires the bloc to invest in US energy products. This part of the deal may lower energy costs for some manufacturing sectors, including energy-intensive packaging materials such as plastics or glass. 

But Werbynska stresses that the environmental trade-off is significant. “I’m concerned this shift could undermine Europe’s transition toward renewable energy and circular packaging models. The packaging sector needs stability, not just in trade but in its decarbonization roadmap.”

Reactions vary 

While the German Government has accepted the negotiation’s outcome, the French Prime Minister, François Bayrouis, says the deal marks a “dark day for the EU.”

The French Minister for Trade, Laurent Saint-Martin, criticized the EU’s handling of the negotiations, saying the bloc should “hit back” in what he saw as a “power struggle initiated by Donald Trump.”

“Trump only understands force,” he told France Inter radio station. “It would have been better to respond by showing our capacity to retaliate earlier. And the deal could have probably looked different.”

Meanwhile, the German Federal Ministry for Economic Affairs and Energy has released a statement saying that it is important that an agreement has been reached. 

“In these challenging times, security and reliability are important for future trade relations between the EU and the US. The agreement is challenging for our economy, but it provides security,” says Katherina Reiche, German Federal Minister for Economic Affairs and Energy.

“It is important that some sectors have been excluded. We have worked for this.”

“Now, rapid clarity on implementation is needed, and we will coordinate closely with the European Commission on this.”While the German Government is content with the deal, the French Minister for Trade says the EU should have sooner retaliated against the US to achieve a stronger outcome.

“The German and US economies are closely linked. Good and reliable trade relations with the US are particularly important for our companies: They exported goods worth around €161 billion [US$186 billion] to the US last year. Almost 6,000 German companies have invested in the US and created around 900,000 jobs. Thirty-five percent of these are in manufacturing."

Packaging system transition

Werbynska says the packaging trade landscape has been changing, and expects to see a shift toward more regionalized supply chains, new partnerships within the US, and a reassessment of logistics strategies. 

“Tariffs force companies to rethink where and how they produce. Unfortunately, this can slow progress on sustainability, as cost becomes a stronger driver than environmental performance.”

“Packaging is more than just a product — it’s part of a system that includes regulation, logistics, materials science, and consumer behavior,” she adds.

“Now more than ever, we need cooperation between the EU and US not only on trade terms, but on innovation and sustainability in packaging.”