Challenges in the Printing and Packaging Industry Amid China-US Trade Tensions

Recently, trade frictions between China and the United States have escalated once again. The U.S. government has announced new tariffs on some Chinese goods, affecting multiple sectors, such as electric vehicles, batteries, and semiconductors. Although the printing and packaging industry is not the core target of this new round of tariff increases, as a vital part of the global supply chain, it is inevitably being impacted indirectly. Rising raw material costs, fluctuating export orders, and intensified international competition are testing the resilience of Chinese printing and packaging enterprises.

In this blog, we at DQ PACK—a custom flexible packaging manufacturer and trading company—will explore how the industry is being affected by the evolving China-US trade situation and how we are adjusting our strategies to seek new opportunities amidst uncertainty.

Industry Challenges: Soaring Costs and Export Pressures

Prices of imported PE and PP resin materials have surged like a rocket, with tariffs directly pushing costs up by 10–15%. Some specialized film materials have even become unavailable without notice, forcing us to make temporary adjustments to production plans.

The impact on export business has been even more significant, with noticeable declines in overseas orders and extended payment cycles from international clients. The overall business landscape has become more complex and uncertain.

Our Breakthrough Strategy: From Cost Control to Value Upgrade

Facing pressure from both ends, DQ PACK is proactively transforming challenges into opportunities by shifting our focus from cost-driven models to value-driven innovation.

Localizing the Supply Chain to Reduce Import Dependence

We are optimizing domestic sourcing channels to lower our reliance on imported raw materials, effectively mitigating cost pressure from tariffs.

Driving Digital Transformation to Boost Production Efficiency

By introducing two intelligent coating machines y upgrading printing equipment, we have significantly improved our production efficiency and product yield, ensuring a more stable and high-quality supply for our clients.

Investing in Sustainable Packaging R&D

We’ve increased R&D investment by 30% year-over-year, focusing on water-based inks and mono-material packaging for dot layout structures. Our newly established Environmental Materials Lab has already delivered promising results. The recently launched mono-material recyclable packaging series has gained strong interest among export-oriented customers who are seeking sustainable solutions.

Looking Ahead: Reshaping Industry Value in a Changing Landscape

The tariff war is accelerating the reshuffling of the printing and packaging industry. Based on our projections, the next three years will see a “dual-track” development pattern:

Low-end, standardized products will continue to migrate to Southeast Asia.

Meanwhile, the market demand for high-end, customized, smart, and sustainable packaging will grow rapidly.

To thrive in this shift, companies must redefine their value proposition—evolving from traditional manufacturers into innovative partners for global brands.

Conclusión

While the future of China-US trade relations remains uncertain, what is certain is that the printing and packaging industry has entered a new era of innovation-driven development.
En DQ PACK, we believe that those who can transform crisis into opportunity will not only survive but also lead the industry into the future.
In this critical turning point, clinging to the old model is the biggest risk—proactive change is the best form of risk management.