In just the first few months of 2025, the American economy (and the world) has experienced a seismic shift.
The application of global tariffs ranging from 10% to over 100% on imports from numerous countries has led nearly every industry to adapt on a whim to changes to their operations and bottom line.
While most industries are feeling some impact, those in the defense sector and others requiring military-grade specialty packaging are feeling a larger pinch.
These developments represent a critical operational challenge that could affect everything from procurement budgets to mission readiness.
US Tariff Implementation (So Far)
The recent wave of tariff implementations has been sudden, with a variety of different aspects going into effect and changing within days. Here’s a short rundown of where things stand as of May 2025:
- Baseline Tariffs: The Trump Administration placed a baseline 10% tariff on imports from all countries in early April 2025
- Country-Specific Tariffs: There have been additional tariffs (from 20% to over 100%) applied to countries with which the US has significant trade deficits (on pause for 90 days)
- Material-Specific Measures: A 25% tariff on steel imports and increased 25% tariffs on aluminum imports (up from the previous 10%)
- Exemption Removals: There has been a wide elimination of previous country-by-country exemptions and an overall termination of the general approved exclusions
The US administration is currently in a 90-day pause on the highest tariffs, during which they have invited countries to approach them to discuss new trade deals. In the meantime, these tariffs have immediate and far-reaching effects on raw materials, manufacturing costs, and delivery timelines.
How are Tariffs Impacting Military Packaging?
The tariffs have had an impact on the specialized materials that military packaging relies on. The aluminum and steel tariffs, as well as impacts on foam and plastics, are seeing prices rise and movement of materials slow across the board.
The 25% tariffs on metals, protective containers, hardware elements, and reinforcements have led to immediate price increases that can impact ammunition cans, transit cases, and similar metal packaging.
Plus, many of the high-performance foams, such as anti-static foams, polyethylene shock-absorbing materials, and molded inserts, are seeing impacts as well.
But while costs are getting the most airtime, there are also significant supply chain disruptions to be expected as global economies try to adapt:
- Materials that had previously taken 4-6 weeks to source may now require 8-12 weeks or more as suppliers shift product movements
- Some critical materials are now on allocation, which means suppliers have to limit their quantities based on past purchases, not future forecasts
- As manufacturers rush to find alternative sources or substitute materials, there may be a reduction in quality control
Looking At The Broader Economic Context
It’s always key to remember that these specific packaging challenges exist within a much larger economic picture.
According to recent economic reports, the current tariff implementation represents the largest tax increase since 1993. It could potentially raise federal tax revenues by $163.1 billion in 2025 alone.
But that same revenue could come with costs to consumers and businesses in:
- Rapid Cost Increases: Companies are now trying to adapt to sudden, substantial increases in material and component costs
- Strategic Uncertainty: Many businesses are simply stopping their major supply chain decisions while awaiting news on whether current tariffs will remain, be reduced, or increase
- Resource Reallocation: Procurement budgets planned before the tariff implementations can’t be used, and many companies are refusing to present forecasts for operations until the economic news is clearer
How Companies Can Adapt to a New Tariff Regime
While Alta Max operates in a packing and security landscape, much of the same wisdom applies to any company:
Start Looking Into Supply Chain Diversification
A key first step companies should consider is creating new connections with suppliers who maintain more diversified manufacturing capabilities and material sources that may be tariff-resistant.
Try finding domestic suppliers for critical components – even if at a premium – to reduce tariff exposure.
Analyze Your Inventory and Purchasing Strategies
It’s more important than ever to secure longer-term purchase agreements to lock in current pricing before you see any potential additional increases. Similarly, buidling a larger inventory can act as a buffer against any supply chain disruptions.
This is also a great time to look into contract renegotiation. Working with suppliers on flexible pricing models can help – particularly if they are open to adjusting partnership specifics as the tariff situation evolves.
How Alta Max is Approaching the Tariff Challenge
At Alta Max, we've been providing military-grade packaging solutions since 2001, and we've been through all the ups and downs of economic changes. While today’s tariff situation is unprecedented in its scope, our team is hard at work taking proactive steps to help our clients keep their operational readiness:
We Bring Our Material Expertise to Alternative Solutions
We’re not new to the industry. Our engineering team has deep experience identifying alternative materials that meet those same regulated military specifications that clients expect, while minimizing tariff exposure. We never compromise quality while working to keep costs low.
Domestic Manufacturing Prioritization Has Been In Our DNA
Our team has already invested heavily in our domestic manufacturing capabilities. This means we can produce many critical packaging components within the United States. We can work to reduce our (and our client’s) dependence on tariff-affected imports.
We’re Experienced in Supply Chain Resilience
Our experience over the years – including the COVID-19 pandemic – has helped us create redundant supply channels for critical materials while keeping relationships with suppliers across different regions. This means you can expect availability tomorrow, no matter the tariff changes today.
We Maintain Strategic Inventory Management
For clients with predictable packaging needs, we've implemented forward buying and inventory management programs that help lock in pricing and availability for extended periods, providing stability in an otherwise volatile market.
Partner with Alta Max for Tariff-Resilient Solutions
Any time there’s a major economic shift, it’s easy to get caught up in the headlines. But when it comes to critical shipping and logistics, a cool head always prevails. At Alta Max, we bring two decades of experience to bear on a changing global economy.
Our team is working to stay ahead of all tariff developments, and we’re here to help each of our clients identify potential exemptions or exclusions that may apply to their specific requirements.
Above all, we're committed to transparency in our pricing and helping you know the exact factors that impact packaging costs. Trust Alta Max to provide the expertise and solutions you need.
Want to ensure your critical military equipment remains properly protected while managing tariff-related cost pressures? Contact us today and discover how Alta Max's expertise can safeguard your shipments and your budget.