The Startup CPG Podcast Bonus: Tariffs 101 with Aaron Alpeter
Feb 6, 2025
In this enlightening discussion, Aaron Alpeter, founder of Izba, shares his expertise on navigating the complexities of tariffs in the CPG sector. He delves into the implications of recent tariff changes affecting trade with Canada, Mexico, and China. Aaron breaks down how these tariffs can disrupt supply chains and influence pricing strategies. He also offers practical advice on tariff engineering and alternative sourcing to help businesses adapt. Tune in for crucial insights that could shape the future of your brand.
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Potential Objectives of Tariffs
- The true objective of the tariffs may extend beyond fentanyl, potentially targeting access to the Arctic or influencing Canadian elections.
- Trump's dislike for Trudeau might also be a factor, highlighting the multifaceted nature of this issue.
Tariffs: A Pre-Planned Strategy
- The tariffs seem pre-planned, aligning with Trump's prior emergency declaration and recent confirmations of key personnel.
- These tariffs could be a long-term strategy, potentially remaining for six months or a year, hurting American consumers and the Republican base.
Impact on US Brands Sourcing Ingredients
- US brands sourcing ingredients from Canada, Mexico, or China will face a 25% or 10% tariff increase respectively.
- This broad-based tariff impacts all goods, including ingredients, packaging, and secondary packaging, regardless of HTS codes.