SUPPLY CHAIN

Trade & Tariffs

Strengthening American Manufacturing

The consumer packaged goods (CPG) industry is America’s largest domestic manufacturer by employment, supporting 22.3 million jobs across the country and $2.5 trillion to the U.S. GDP.

Many CPG facilities are in rural areas with strong agricultural ties and while U.S. companies source up to 90 percent of ingredients from American farms and suppliers, certain inputs like coffee, cocoa and spices, and specific packaging materials, like tin mill steel, cannot be sourced locally in sufficient quantity or quality.

As a result, the industry relies on international trade to maintain resilient supply chains and ensure product availability and affordability.

Tariffs

The CPG industry makes every effort to source the vast majority of ingredients and inputs from U.S. farms and domestic suppliers. However, CPG companies depend on global supply chains for certain imports due to unique growing conditions and other limiting factors around the world. While the industry is committed to supporting a strategic “America First Trade Policy” it is also crucial to protect American jobs and keep food, beverage, household and personal care products affordable and available.

Tariffs on key materials and ingredients, which are otherwise unavailable in the United States, can significantly impact the overall price and availability of American-made products. Tariffs on these unavailable natural resources inevitably lead to higher consumer prices as costs ripple through the supply chain or endanger U.S. CPG manufacturing jobs as foreign finished product imports become more cost competitive. These tariffs can also trigger retaliatory tariffs and other trade barriers globally, limiting market access for U.S. CPG companies abroad.

Domestic Manufacturing

As the largest manufacturing employer in the nation, the CPG industry plays a vital role in the U.S. economy, not only through its significant economic footprint but also through its ongoing commitment to American manufacturing. By producing goods domestically, we’re not just creating products — we’re creating opportunities for American workers and communities.

Everyone knows the iconic American brands on grocery store shelves, but not everyone knows what goes into making the products consumers depend on every day. From farmers harvesting ingredients to lab technicians ensuring product safety, to truckers transporting goods and supply chain leaders using the latest advancements in AI and automation to keep operations humming efficiently, the people across the country who keep the industry moving at the speed of the consumer are the true story and pulse of the industry.

Over the past five years, the CPG industry has demonstrated impressive wage growth, with a 30% increase in direct industry wages over that time. As we look toward the future, it’s clear that these well-paying, domestic jobs highlight the importance of federal and state policies that facilitate job growth and innovation, while building consumer confidence. From building new factories to creating jobs and meeting shifting consumer demands, the industry remains steadfast in its commitment to providing safe, affordable and convenient products.

Supply Chain Resiliency

The CPG industry supplies the products that consumers rely on daily, highlighting the constant need for accessible and affordable products which would not be possible without a strong and resilient supply chain. Whether it be ensuring that shelves are stocked with toilet paper or that critical OTC medications are available, the CPG industry does everything they can to meet consumers where they are. However, global supply chain disruptions like COVID-19 or geopolitical conflict can pose significant challenges, such as halting the flow of supplies and staffing deficiencies. Government policy also plays a pivotal role in delivering consumers the products they rely on, shaping the landscape of supply chains while contributing to national competitiveness and the ability to respond quickly and resiliently in crisis.

What We Do

Advocate for smart trade policies that protect American consumers and jobs, recognizing the unique needs of food, beverage, household and personal care manufacturer supply chains.

Build awareness and thoughtful dialogue around trade issues with key policymakers about what’s at stake for domestic manufacturing, championing incentives and avoiding unintended consequences.

Lead industry efforts to collaborate with federal legislators and government agencies to deliver on the promise of America First Trade Policy and create the best possible outcome for the CPG industry, ensuring product availability & affordability for years to come.