Each month, the packaging and materials part of the market becomes increasingly challenging to predict due to the erratic implementation of tariffs and ensuing trade wars. That being said, both the threat and actual application of tariffs have cascading implications for wine and spirits sales of finished goods and all the components.

The US government enforced 25% tariffs on imports from Canada and Mexico, effective March 4, 2025. The administration rowed back somewhat on March 6, postponing until April 2 tariffs on all products imported from Canada and Mexico covered by the USMCA. However, a 10% duty on Canadian energy will likely remain in place. Additionally, the administration pressed ahead with 25% tariffs on all steel and aluminum imported into the US, effective March 12, arguing it will help level the playing field for US manufacturing. Unfortunately, this will likely have profound implications for the cost of goods of many products including – most pertinently for our industry – canned alc-bev products.

In parallel, the US administration has imposed an incremental 10% tariff on Chinese imports. The total incremental tariff for Chinese imports in 2025 is 20% (10% on February 4 and 10% on March 4). Increased tariffs will apply upward pressure on domestic pricing as domestic demand increases in a constrained capacity market. Unless there is tariff relief by the beginning of summer, wineries that have not secured guaranteed bottle contracts at stable prices may face significant cost increases and potential shortages.

This is a very fluid situation, and the terms can change at any moment. We will work with the Ciatti team to update you as additional information becomes available.

In other news, the International Longshoremen’s Association (ILA) has ratified a new six-year contract covering East and Gulf Coast ports. This deal provides labor stability until 2030.

In tandem, we are seeing fuel prices continue to increase. The US Diesel $/Gal monthly price increased in February to $3.675 versus January’s price of $3.634. With Canadian energy tariffs in effect, US fuel prices are expected to continue rising due to the large volume of Canadian gasoline, heating oil, and diesel traded by the US.

In better news, ocean freight from Asia to the West and East coasts has decreased since last month. Additionally, tariffs on Chinese goods place downward pressure on Asia's import volume and ocean freight pricing.

Hopefully, our next update will be able to report a stabilization of the market so wineries can adequately plan for the 2025 bottling.

Bottled Tidbits—There are two key components to making glass. The first is Silica (Silicon Dioxide or SiO₂), most commonly found in nature as quartz. According to 2021 statistics, China was the leading producer of Silica, with an output of approximately 6 million tons, followed by Russia at 580,000 tons, Brazil at 390,000 tons, Norway at 350,000 tons, and the US at 310,000 tons.

The other key component is Soda Ash (sodium carbonate or Na₂CO₃), often contained within mineral trona from lake brines or mineral deposits. Interestingly, Wyoming's Green River region holds the world's largest deposits. In 2025, China produced approximately 20 million metric tons of soda ash, the US produced around 11 million metric tons, and Turkey contributed about 4 million metric tons.

Also worth noting, Saxco’s own Stephanie Ramczyk published an article about our philosophy of “RightWeighting” bottles versus the incorrect myopic focus on “Lightweighting”. To learn more, you can read Stephanie’s piece here.

While this diagram represents a measurement of heavier bottles from Mexico, the concept of RightWeighting goes beyond just measuring bottle weight to assess a wine package’s carbon footprint. RightWeighting involves evaluating various factors – including the source of materials, production processes, and distribution footprint – to determine each product's most environmentally friendly packaging options.

 Nicolas Quillé, MW, of Crimson Wine Group (not a Saxco customer), has developed the gold-standard framework, set out here. This initiative is designed to reduce carbon emissions effectively by adjusting bottle weights for their most widely distributed products, while also using lighter yet trustworthy packaging for their smaller production and premium wines. This approach balances the goal of minimizing environmental impact with maintaining consumer confidence in the quality of their packaging.

packaging tariffs