On the heels of U.S. President Donald Trump’s 2025 inauguration – and a wave of immediate executive orders – Tim Sykes, Packaging Europe’s brand director, weighs up the potential effects on the packaging industry at large, from trade limitations to changes in business and consumer behaviour.
Yesterday marked the second inauguration of Donald Trump as the president of the United States. As he makes his return to the Oval Office, I am one of millions around the world reflecting on what this might mean for the future; that of the packaging industry, in my case.
Protectionist policies are increasingly on the agenda of the leading international powers, and Trump has threatened to implement tariffs on imported goods. How would such barriers impact global trade in recycled materials? Would they provide a boost to the domestic recycling industry in the USA (at a time when European recyclers are pleading for protection against imports of cheap PCR)?
Market implications aside, Trumpism represents a step away from a focus on international collaborative efforts to solve collective problems, particularly in environmental matters. This is especially concerning when taking into account the ticking clock of climate change – and Trump’s own history of dismissing “the Global Warming Hoax”, having now announced America’s second withdrawal from the Paris Agreement.
Mechanisms in the US packaging space tend to be at state, rather than federal, level. However, there are grounds to question whether Biden-Harris Administration’s strategy to tackle plastic pollution, for example, will carry over into a new presidency that is explicit that economy takes precedence over environment, and which intends to reverse pre-existing climate policies to stimulate the American market.
Moreover, if our world leaders, do not accept the climate crisis as a reality, what does that say about consumer-driven responsibility? Can we even expect corporations to push for improvement when their government (in particular, a government elected by the popular vote of tens of millions of American citizens) does not share their view?
There may also be more localized and indirect impacts on packaging from Trump 2.0. For instance, if Trump’s promise to broker peace between Russia and Ukraine comes to fruition, this could lead to boycotts lifting and the stabilization of lumber and energy prices in case of a peaceful resolution; or it could lead to escalation if Putin comes out on top.
All we can do for now is wonder, but the implications could be big. Now is a critical time to bolster this industry and help reverse the damage done to our planet; it remains to be seen whether the Trump Administration will help or hinder us.
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