Tariff Swings Shake U.S. Glass Packaging Industry

The U.S. glass packaging industry and its customers are facing ongoing challenges due to unpredictable tariffs, according to leaders from the Glass Packaging Institute, the Wine Institute, and the Distilled Spirits Council of the United States. These organizations discussed the current situation during a virtual event on Monday, emphasizing their continued support for the Toasts Not Tariffs Coalition. This coalition, which includes retailers, distillers, and restaurant groups, advocates for reciprocal and tariff-free trade with international partners.

Industry leaders explained that shifting tariffs have created significant uncertainty for manufacturers and exporters. Scott DeFife, president of the Glass Packaging Institute, addressed the misconception that tariffs on metal packaging would benefit glass packaging. He explained that food and beverage manufacturers cannot quickly switch their packaging materials in response to changing tariffs. “A food or beverage manufacturer just cannot flip their packaging choice on a 30-day, 45-day, even a 60-day, 90-day notice,” DeFife said.

Packaging companies have had to adapt over the past year as trade policies have affected inventory and shipments. O-I Glass reported during its recent earnings call that trade policy changes led to inventory adjustments in both the U.S. and Mexico, which impacted shipments at the end of 2025.

A recent decision by the U.S. Supreme Court in February blocked one method for imposing tariffs. However, DeFife noted that President Donald Trump still has other options available for implementing tariffs under existing trade authorities such as Section 232, Section 301, or anti-dumping measures. Charles Jefferson, vice president of federal and international public policy at the Wine Institute, pointed out that some newer tariff mechanisms do not offer the same structured processes as traditional trade authorities. He called for a return to more predictable systems that allow businesses to plan ahead.

The wine industry is experiencing its most difficult period in decades, according to Jefferson. He reported that exports to Canada—historically the largest export market for U.S. wine—fell by almost 80% in 2025. Globally, U.S. wine exports dropped below $1 billion for the first time since 2009. Imports also declined by 10% in value and 4% in volume last year.

Jefferson explained that wine supply chains are longer than those of typical consumer packaged goods because wine is closely tied to its place of origin. This makes it impossible for producers to simply relocate production in response to tariffs or other disruptions. After the wine itself, glass is the second-most expensive component in production. “We can't operate in an environment where tariffs are shifting on a day-to-day basis,” Jefferson said. He noted that there have been four possible tariff rates in just the past few weeks, making it difficult for businesses to invest with confidence.

The spirits industry is also struggling with similar issues. Robert Maron, senior vice president of international trade policy and market access at the Distilled Spirits Council of the United States, reported a 3.7% drop in exports last year. Exports to Canada fell by 63%, causing Canada to drop from being the second-largest export market for U.S. spirits to sixth place in 2025.

Maron emphasized that certain regional spirits like bourbon and tequila cannot be produced outside their designated regions due to legal protections and tradition. The spirits sector is seeking a return to stable trading conditions with zero-to-zero tariffs among major partners—a system that supported industry growth for nearly 25 years.

Industry leaders agreed that their top priorities include restoring zero-to-zero tariff agreements with key trading partners and preventing retaliatory trade actions. They stressed that resolving current uncertainties is essential for long-term investment and stability across the wine, spirits, and glass packaging sectors.