Trump-era tariffs linked to plastic rise, UK firms at risk

Yahoo

14-05-2025

UK manufacturers may face rising compliance risks under new packaging waste regulations, as shifting global trade policies linked to US tariffs prompt a move towards increased plastic use, according to a leading environmental compliance firm.
The warning from Manchester-based Ecoveritas follows recent developments in US trade policy, where despite some tariff relaxations, the ongoing global impact of former President Donald Trump's trade measures continues to influence supply chain decisions.
Major producers are reportedly reconsidering their packaging materials, potentially increasing plastic usage in response to tariffs on steel and aluminium.
Global brands including Coca-Cola have begun to move away from aluminium cans in favour of plastic alternatives, a shift attributed in part to tariffs on metal imports.
While such changes originate overseas, UK companies could be affected indirectly by handling imported goods or altering their own supply chains in response to global trends.
Ecoveritas has emphasised that businesses in the UK must pay close attention to the new Extended Producer Responsibility (EPR) rules, introduced this year, which place greater accountability on firms for the packaging waste they generate.
The firm warns that increasing reliance on plastic packaging could inadvertently raise compliance costs under these stricter regulations.
Under the EPR scheme, all UK businesses with annual turnover exceeding £1 million and handling more than 25 tonnes of packaging are now responsible for funding the recycling of their packaging waste.
They are also required to track, report and submit detailed data on packaging usage.
Estimates suggest these changes could result in up to £130 million in additional costs for large retailers alone.
Ecoveritas notes that failure to accurately report packaging data could lead to significant financial penalties, with even minor miscalculations potentially costing businesses hundreds of thousands of pounds.
Andrew McCaffery, Chief Strategy Officer at Ecoveritas, cautioned that the current trade landscape is adding new complexity to packaging decisions.
'The headlines tend to focus on material price increases, but it is crucial that firms don't lose sight of the rules they must adhere to when it comes to packaging and waste,' he said.
He added that while the shift in packaging materials may be beyond the control of many UK companies, they must still ensure compliance with domestic environmental regulations.
McCaffery encouraged firms to reassess their approach to packaging waste, stating that 'there is an opportunity for businesses of all sizes to become more sustainable and minimise compliance risks.'
The warning highlights the ongoing challenges facing UK manufacturers in adapting to global supply chain changes, particularly in areas linked to plastic packaging, recycling regulations and extended producer responsibility.
"Trump-era tariffs linked to plastic rise, UK firms at risk" was originally created and published by Packaging Gateway, a GlobalData owned brand.
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