During the AWA Global Release Liner Summit, a host of industry experts discussed tariffs and the potential impact on the pressure sensitive label industry. AWA’s Anum Beg and Catalina Steenbakkers shared the latest data from converters and suppliers across the globe. Meanwhile, Calvin Frost, chairman of Channeled Resources Group, and Steve Hicknell, VP of sales at Kruger and a Canadian native, delivered their perspectives.

More than 200 attendees joined the event, held March 19-21, in Chicago, IL, USA, which covered a wide range of pressing industry topics. The opening session on tariffs, which took place on March 19^th, explored the impact of imports and exports around the world.

According to AWA, the United States relies heavily on imports of PS label materials. Total imports of PS labels into the USA measured approximately 23.167 metric tonnes in 2024. This represented growth over 2023, which saw 20.568 metric tonnes imported. As an example, Europe imported 7.312 metric tonnes in 2024.

“Europe has been much more of an export market while North America has historically been more of an important market, specifically in labels,” stated Steenbakkers. “For the US, China is an important trade partner. Mexico and Canada also play significant roles when it comes to these types of materials.”

There are numerous factors that have impacted China. “Over the past few years, the economy in China has slowed down significantly,” said Beg. “That’s expected to continue long term.”

China is still a critical trade partner for the US, as “the material that comes into Europe and North America is quite cheaper than if it were sourced locally,” added Beg.

AWA notes that material entering Europe and North America can sometimes be 20% cheaper than if that material was sourced locally. Market implications have been influenced by price pressures, supply chain and distribution shifts, and compliance and regulatory challenges.

“Covid led people to re-evaluate their suppliers and have a diversified portfolio,” noted Beg. “Tariffs on materials coming out of China could shift the entire supply chain, with how companies procure their materials. And there could be other trade policies that impact this market, as well.”

“It’s still early to see how tariffs will impact our industry, but they will,” added Steenbakkers. “And it could be detrimental to a lot of people in this room. We expect that when these tariffs are in place, there will be a decline in exports of PS label materials. It remains to be seen whether that is short term or long term. The US market still has capacity concerns to meet demand, which will impact cost and how much material makes it into the US.”

China expected to focus less on exports and focus on the local economy and region. China could also export more to Europe. Chinese companies are also looking at investing in production in Vietnam and other markets to circumvent tariffs.

“The US market is still an attractive market for Chinese and Asian markets,” said Steenbakkers. “Even with the uncertainty and who will absorb the costs, the long term trade dynamics between the two regions is very important. We will monitor this very closely.”

Frost noted the potential complications that will arise from tariffs. “It’s harder than hell to talk about tariffs and not talk about politics,” said Frost. “Paper suppliers will get charged more, then those costs will be passed on to converters, then customers and consumer. That’s called inflation.

“Tariffs, in my opinion, do not solve problems,” added Frost. “We need to have collaboration and sit down with other countries. We have to come to a better understanding of how we’re playing and competing on an even playing field. It is complicated, but tariffs are not the answer. At the end of the day, the consumer pays more. We are global, and tariffs are not the solution. A 25% tariff is almost the death knell of smaller businesses in other countries.”

Hicknell addressed how the tariffs between the US and Canada have impacted the Canadian marketplace. “Hopefully we can get to a point where we can get along and work to grow our businesses,” he stated. “A lot of Canadians are hurt. To a certain extent there have been some lax things in our government, but we still need to have those borders open for trade. We’re two great countries that need to work together. A 25% tariff is an aggressive number for anyone to be able to take.

“I’ve always loved this industry and it’s upsetting to see what the implications could be going forward,” added Hicknell.