In addition to capturing public attention and dividing economic analysts, tariffs have real-world consequence across the supply chain. As a global trade “reset” continues unfolding, in line with the current administration’s America First initiatives, contract packagers and other supply chain stakeholders are weighing the benefits of reshoring. Despite short-term challenges brought on by tariffs, particularly those impacting trade with China and Canada, many manufacturers and producers are embracing opportunities to do business in the US, where performance is proven and pricing is stable.
Tariff Transparency Yields Trade Truths
Armchair economists are weighing in in increasing numbers, decrying the negative potential associated with tariffs. Although big-picture global economics are nuanced and fluid, tariffs are not new or complex. A tariff is nothing more than a tax placed by a particular country on goods imported from another country. Tariffs can be imposed on specific items, classes of goods, or across-the-board, affected everything flowing from one country to another.
Potential negative impacts of US tariffs are mostly associated with the increased costs imposed on businesses affected by tariffs, as well as higher prices in countries exacting tariffs. The financial burden is particularly high on foreign exporters, and it is thought by some that the financial impacts of tariffs may lead to supply chain disruptions.
Tariff detractors are correct pointing out that in modern global trade environments, where producers often cross numerous borders bringing goods to market, tariffs may affect the price of goods at each crossing, resulting in taxation on multiple levels. Because the added tax raises the price of imported materials and finished goods, tariffs commonly impact consumer purchase power within countries responsible for imposing the cost.
The prospect of facing tariff-induced price increases on the heels of recent runaway inflation has US consumer confidence at 28-month lows, which in turn impacts new orders, business investment, and plans for expansion. As the administration continues sorting-out tariff policies and global trade standards, many manufacturers are turning to established US production and packaging relationships for stability in uncertain markets.
Tariff Uncertainty Drives Business to Stable Established US Firms
Trade wrinkles take time to resolve, requiring patience and diplomacy to work out all the details at issue between diverse stakeholders. Although any major shift in US trade policy is likely to give pause, resulting in ambiguity and some degree of instability, Trump’s “here today, gone tomorrow” tariff rollouts have fueled the fire with unprecedented trade uncertainties — even among the United States’ most robust, longstanding trade partners.
While sentiments regarding tariff policies are mixed, many executives are focused on the unknown elements of the emerging import taxes. Faced with challenges planning for uncertain trade environments, “proceed with caution” is the mantra for manufacturers navigating fluid tariff environments. Rather than live or die by tariff policy outcomes, many forward-looking decision-makers are embracing established contract packaging companies and other businesses within the US, enabling producers to sidestep some of the issues associated with tariff transitions.
Benefits of Reshoring Manifest in Time
The short-term outlook related to tariffs may include US inflationary pressure, which could in turn slow the pace of Fed rate cuts. However, as tariff policy congeals, offering greater clarity on the administration’s long-term economic objectives, resulting reshoring of manufacturing businesses to the US could yield long-term economic benefits. Focused on the long-term economic potential of reshoring, committed stakeholders are already doubling down on their relationships with US-based packaging companies and logistics contractors.
Alternate scenarios for a tariff-driven economy recognize the possibility for negative outcomes. For example, reshoring high-value manufacturing to the US follows proven paradigms, in which advanced manufacturing taps into skilled labor forces for consistent production. Low-value manufacturing, on the other hand, is traditionally conducted offshore. Returning low-value manufacturing to the US could result in higher overall production costs for wide-ranging domestic goods.
Consumer sentiment, driven by economic uncertainty, fell to a 28-month low in March. The outlook for businesses is tracking a similar trajectory, with decision makers taking a conservative approach to capital investment. New orders were down in the manufacturing sector during February, further illustrating stakeholders’ cautious sentiment. Rather than embark in unfamiliar territory, many producers are cementing their domestic positions, favoring US stability over uncertain future relationships with trade partners Canada and China.
Domestic Momentum: A Foreshadowing of Post-Tariff Trends
As new tariffs reshape global trade dynamics, manufacturers are increasingly investing in US-based operations to enhance supply chain resilience and meet high-volume production demands. The following case studies illustrate this trend, offering clear signals that reshoring is not just reactive policy, but a structural shift already in motion.
Milwaukee Tool: Expanding US Manufacturing Footprint
Milwaukee Tool opened a new 500,000-square-foot facility in Grenada, Mississippi, backed by an investment exceeding $60 million. The plant currently produces SAWZALL® blades and plans to expand into other product lines, reinforcing Milwaukee’s long-term commitment to domestic high-volume manufacturing.
Source: Greater Grenada Economic Development
Georgia-Pacific: Investing in Corrugated Packaging Capacity
Georgia-Pacific invested over $20 million to upgrade its Lebanon, Tennessee, plant, replacing the existing corrugator with advanced machinery to increase output and quality. The investment supports fast-turnaround packaging solutions for high-volume consumer goods brands.
Source: Georgia-Pacific Newsroom
Unilever: Expanding Production for Liquid IV
Unilever is investing $80 million into its Jefferson City, Missouri facility to scale production of Liquid I.V., its powdered hydration supplement. The upgrade includes automation and new blending rooms, marking a significant reshoring effort for a high-demand wellness brand.
Source: Unilever USA
Campbell Soup Company: Optimizing Supply Chain Operations
Campbell Soup Company is rolling out a $230 million supply chain optimization plan through FY2026. This includes consolidating production and expanding efficient US plants, enabling more scalable, high-volume manufacturing across its soup and snack portfolio.
Source: Campbell’s Newsroom
Sea Change Ahead for US Manufacturing?
Advocates tout reshoring as a generational shift back to the glory days of US manufacturing. Following decades, sacrificing millions of jobs to offshore manufacturing, the current administration strongly believes in the power of reshoring to jump-start the US economy. According to advocates, reshoring is a win/win prospect, setting the stage for increased production, expanded access to emerging markets, and stronger competition among global producers.
It is thought the presidential administration’s sweeping tariffs will spark negotiations, potentially resulting in a trade landscape unlike current conditions. Tariff challengers point to labor force shortfalls, infrastructure concerns, and other stumbling blocks facing US manufacturing resurgence. According to tariff opponents, confidence in reshoring will continue to falter, until US businesses are convinced it’s viable.
Manufacturers doing business across borders will no doubt feel the impacts of tariffs, but it is important to recognize another group of producers already making goods in the United States. For domestic producers, strengthening established US manufacturing, packaging, and logistics partnerships may ultimately strengthen pricing power and offer added consumer appeal, despite new tariffs.
From a tool-maker with a 170-year history of US production, to a veteran-inspired helmet manufacturer scaling domestic fabrication; onshoring production has led to relatively stable conditions, when compared to industries on the front lines of tariff transitions. As diplomatic and economic agendas collide at the tariff talk table, companies already well-partnered within the United States and those on a path toward reshoring are embracing the benefits of working with established packaging contractors and other proven US supply chain partners.
Conclusion: Partnering with Assemblies Unlimited for Contract Packaging Success
As supply chains evolve in response to tariff pressure, shifting global dynamics, and previously with reshoring among the pandemic, many manufacturers are bringing production back to the US to improve stability, reduce lead times, and secure long-term growth. This trend is especially critical for brands managing large production volumes that demand consistent, high-quality packaging solutions.
Assemblies Unlimited provides complete contract packaging services across a wide range of product types and industries. With deep experience in high-MOQ runs, US-based production, and turnkey fulfillment, we are positioned to support your reshoring strategy from concept to completion. For companies looking to strengthen domestic operations and maintain a competitive edge, aligning with a trusted packaging partner is a smart next step.
