Import tariffs can significantly influence sellers’ profits when bringing products into the US. This is true for items that need blister packaging, like electronics accessories, toys, pharmaceuticals, and consumer goods. An effective way to reduce these tariff costs is to perform blister packaging in the US. This guide explains how domestic packaging can reduce import duties, streamline logistics, and enhance profit margins.

What is the Current Tariff Landscape in the US?

Tariffs in the US are mostly based on the Harmonized Tariff Schedule (HTS), which assigns tariff codes and rates to different product categories. Finished products, especially those packaged abroad and ready for retail sale, typically attract higher duty rates. Conversely, importing goods in bulk or unfinished form and packaging them domestically can significantly reduce tariff exposure.

The latest amendments in the tariff policies have made imports quite challenging for the US. As of 2025, the $800 de minimis exemption has been removed for goods from China and Hong Kong, increasing duty costs on those shipments. However, for goods from other countries, shipments under $800 may still enter duty-free if they meet personal-use rules and avoid extra tariffs like anti-dumping duties. 

Potential of Blister Packaging for Tariff Cost Reduction

Blister packaging is a standard retail product packaging method that uses transparent plastic shells attached to cardboard. It’s simple but very useful for domestic packaging. Items in blister packs are usually seen as finished goods, which means they have higher tariffs. If these products are imported without packaging, they might be classified differently, which may lead to lower import costs.

Why does Blister Packaging in the US Make Financial Sense?

Thanks to certain trade agreements and tariff codes, bringing in products as bulk items or components often means lower or no tariffs. Sellers can take advantage of these savings by completing the blister packaging process within the US. While the revised reciprocal tariffs have pushed intermediate goods like electronics under the tariff, some raw materials are still exempt from these heavy taxes.

In addition, domestic packaging allows customization for seasonal promotions or consumer preferences, reducing inventory obsolescence by 10%–12%. This responsiveness helps minimize inventory risk and allows quicker reactions to market changes.

Step-by-Step Guide to Implementing Domestic Blister Packaging

The trade market has always been brutal, and the only way for any US business to survive is to be receptive to change. Blister packaging may not be as relevant for global imports, yet it continues to be a cost-effective solution in the domestic market. To take the maximum advantage of this packaging method, sellers can follow these simple steps: 

1. Evaluate Your Current Tariff Exposure

Start by reviewing the HTS codes for your imported items. Analyze the pricing for fully packaged goods compared to bulk imports. Investigate potential savings by switching to packaging sourced domestically.

2. Partner with a US-based Packaging Facility

Build a relationship with a reliable US packaging partner. Powerpak Industries can help you start a low-cost packaging setup or connect with a trusted local vendor. Choose a facility with the right capacity, quality standards, and experience.

3. Optimize Your Supply Chain Logistics

Transporting goods in bulk is a way to cut down on shipping costs. Using bulk packaging optimizes the space in containers. This efficiency results in lower freight charges and overall costs.

4. Coordinate Packaging Designs and Requirements

Work with your packaging facility to create efficient, standardized blister packaging designs. Use recyclable materials and simple layouts to reduce costs and streamline inventory.

Cost Savings: The Impact in Numbers

The savings from domestic packaging can be significant. Studies show real financial benefits:

• Tariff Reduction Savings
  Shifting from importing finished, blister-packaged goods to bulk shipments can reduce tariffs by 4%–10%, depending on the product type and source country. For example, when packaged abroad, an item with an 8% tariff might only face 2% when imported unpackaged. On a $500,000 shipment, this could save $30,000 in duties.
  
• Reduced Transportation Costs
  Bulk shipping with blister packaging’s compact design can cut freight costs by 15%–20%, saving $7,500–$10,000 on a $50,000 shipment.
  
• Inventory and Warehouse Efficiency
  Domestic packaging makes it easier to match production with real-time demand. This approach can lower warehouse costs by 10%–15%, boosting overall profitability.

Potential Challenges and Considerations

While domestic blister packaging offers many benefits, there are a few challenges to consider:

• Initial Setup Costs
  Switching to US-based packaging may require upfront spending on equipment, packaging design, or inventory planning. However, these costs are often recovered quickly through tariff and logistics savings.
  
• Regulatory Compliance
  Ensure your packaging flow follows US labels, safety, and materials rules. A reliable packaging partner can help you stay compliant.
  
• Consistency and Quality Control
  Choose a partner with strong quality control processes to maintain consistent packaging and protect your brand image.

Powerpak Industries is equipped to help you overcome these challenges. With more than 35 years of expertise in blister packaging machinery and supplies, we provide professional advice. Furthermore, every machine we offer is backed by a lifetime warranty.

How Onshore Packaging Can Lead to Higher Profits?

Moving blister packaging operations to the US is a smart strategy to cut import tariffs and shipping costs. By importing products in bulk and packaging them locally, sellers can enjoy lower duties, reduced freight costs, and greater market flexibility. With the right plan and trusted partner, domestic packaging opens the door to better profit margins and stronger market performance.