According to Supply Chain Dive, polyethylene bags and other plastic packaging products are now subject to a 50% tariff under Canada’s reciprocal tariffs order, escalating supply chain pressures amid the ongoing U.S.-Canada trade conflict.
Plastic packaging swept into tariff crossfire
The tariff measures — effective September 8, 2026 — target a broad range of plastic items beyond polyethylene bags, including stoppers, lids, caps, other closures, and tableware. These products appear explicitly in Canada’s official list of U.S. imports subject to counter-tariffs. In parallel, 15% tariffs apply to various molds used in manufacturing plastic, metal, and rubber goods — further disrupting production inputs for converters across North America.
Confusion over Harmonized Tariff Schedule codes
As companies navigate the shifting landscape, uncertainty persists around which specific products fall within affected Harmonized Tariff Schedule (HTS) codes. A Rabobank packaging and logistics analyst noted the operational ambiguity:
“Depending on the size of the converter and your influence over the supply chain, there’s probably a lot of confusion.”
This challenge is not unique to plastics; fiber packaging producers have reported similar classification inconsistencies, as highlighted by Hugues Simon, CEO of Canada-based fiber packaging company Cascades, during an August earnings call.
Compounding global trade pressures
The tariff escalation coincides with additional external shocks, including impacts from the war with Iran — making these tariffs among the most urgent concerns for plastic packaging producers right now, according to Rabobank. With no indication of near-term de-escalation, manufacturers face rising landed costs, delayed customs clearance, and increased pressure to reevaluate sourcing strategies across North America. The 50% rate on polyethylene bags alone represents a material cost shift for retailers and foodservice distributors reliant on single-use plastic packaging.
Source: Supply Chain Dive
Compiled from international media by the SCI.AI editorial team.
