Many small businesses are getting creative to offset rising costs driven by tariffs, especially when it comes to packaging, according to a recent article by Supply Chain Dive. One cosmetics business swapped higher-cost branded kraft boxes for plain corrugated cartons from a U.S. supplier, and then added tissue wrap and a sticker to keep the brand feel, cutting the per-unit cost significantly. The change required time, new minimum-order quantities and slight warehouse adjustments, but the owner found it worth the investment. For these firms, tariffs are just one part of a broader decision-matrix: cost, functionality, brand experience, sustainability and sourcing all play a role. Because tariff policy remains volatile, many small companies are wary of making large, permanent shifts like switching an overseas bottler, redesigning packaging or retooling for domestic sourcing may be too risky if duties change again. One founder noted that planning ahead is the hardest part: predicting where tariffs will be a year from now is nearly impossible. For small brands operating with tight margins, packaging redesigns offer a tangible lever to control cost without sacrificing the customer experience, but the trade-offs in time, inventory and supplier fit must be managed.
Toy maker Mattel is feeling the pinch of rising import tariffs just as it prepares for the holiday season. Retailers, wary of the additional levies on imported goods, are shifting their sourcing strategies by placing more frequent but smaller orders, and assigning more of the importation and warehousing burden onto Mattel itself. This shift reflects broader trade-induced supply-chain pressure: to avoid large upfront commitments and extra costs, retailers are migrating away from large advance shipments and instead opting for flexibility.
For Mattel, this means managing higher inventory risk, tighter margins and increased complexity in forecasting consumer demand during the critical fourth quarter. While the company’s diversified production footprint offers resilience, the changed ordering patterns place more inventory and cost burden on the manufacturer rather than the buyer. As price sensitivity remains high in the toy category, there’s limited room for passing extra costs onto consumers without risking market share.
Looking ahead, the toy industry’s profit picture will hinge not only on consumer demand but also on how effectively companies adapt to these tariff pressures through smarter sourcing, logistics optimization and tighter collaboration across retailer relationships. For stakeholders, the holiday season may deliver strong sales, but it also brings elevated risk from trade-driven supply disruption and cost escalation.