‘Reuse is a solution that addresses Trump tariffs as well as sustainability’

Fluctuating tariffs and diverging regulatory environments threaten the entire consumer goods industry. So does the growing opposition to over-packaging and plastic in particular.

Luckily, there is an answer that addresses both with a long-lasting and long-standing smart solution: reuse. Tariffs mean that every time your product, or one of its components including its packaging, crosses a border, your company is hit with a fee.

Reuse means the packaging only crosses a border once every 10, 20 or 30 times by keeping packaging in local circulation, without the need for remanufacturing. When using regional co-packing facilities, the whole product only crosses a border once, even if it’s sourced from elsewhere.

This is a secure and efficient business strategy. Reuse systems are shovel-ready in most of the world and already exist in many countries. Global reusable packaging standards are being introduced now and assure the safety, interoperability, efficiency and environmental metrics of new reuse systems.

These six standards cover the whole system (ie: washing safety, digital interoperability, labeling alignment) and were developed and vetted by a panel of over 80 members led by PR3: the Global Alliance to Advance Reuse. In addition to avoiding tariffs, reuse systems provide companies with more certainty and control by localising supply chains, assuring that geopolitical disturbances don’t interrupt product availability and more easily include cultural preferences in local co-packing plants.

Once early infrastructure (ie: wash hubs and co-packing facilities) are developed, reuse becomes cheaper all around as packaging, transport, supply chain, private waste hauling and carbon fees all go down.

Reuse also improves recycling. At the end of its life (after multiple uses), a reusable container is more likely to get back with the producer than an untrained consumer, leading to better sorting and a cleaner waste stream of materials rather than the mixed-up mess we have now.

The Agricultural and Applied Economics Association notes that canned goods operate on one of the lowest margins of any industry and should be produced as close as possible to canning facilities. However, tariffs are pushing companies to source materials farther afield, adding cost and strain.

“Imagine a marketing campaign for reuse that can claim strong environmental bona fides without using smoke and mirrors”

James Quincey, the chief executive of Coca-Cola, recently acknowledged that surging aluminium prices could push the company back toward plastic. Reuse, where each can or bottle is used many times, would be a wiser long-term solution. On top of financial security, reuse provides tremendous environmental and social benefits. Even if a company has cut back on its ESG plans, it can only benefit if its carbon and waste footprint is greatly diminished and its operations include local economic development in major markets. Yes, reuse does that too.

Reuse can eliminate up to 90% of packaging manufacturing and 80% of the emissions compared to single-use alternatives. This benefits every company and can even help marketing in a tough sales environment. Currently, expensive and ubiquitous ad campaigns tout dubious claims about recycled bottles. Imagine a marketing campaign for reuse that can claim strong environmental bona fides without using smoke and mirrors, and create new consumer appeal, especially with younger buyers.

Also, as global companies localise parts of their packaging and supply chains, they build new relationships with the communities where they operate. It’s hard to put a price on this local economic development, but bringing the social aspects back into commerce would be as refreshing as someone actually answering the phone when you call.

This Plastic Free July, I invite UK retailers to think bigger than bags and bans and increasing recycled content. Tariffs, geopolitical turbulence and environmental concerns all call for shorter supply chains and more security on price and availability. Reuse is a safety valve to secure the future of the retail industry.