From Yahoo Finance: 2025-04-01 12:35:00

Consumer product companies are adjusting their products to cut costs and avoid price hikes due to new import taxes. U.S. consumers feel inflation pressure, businesses face higher expenses, and tariffs impact profits. Strategies include reworking products, economy packaging, and removing extras. Companies like Abacus Brands and Aurora World are making changes to minimize price increases.

President Trump’s tariffs on Chinese goods and materials have pushed companies to rethink their products. From using thinner paper to reducing paint colors, adjustments are being made to absorb the financial impact. Companies like Abacus Brands and Aurora World are exploring different options to counteract the effects of tariffs while maintaining product quality.

Companies may reduce packaging and shift to eco-friendly options to appeal to consumers. Basic Fun CEO Jay Foreman is exploring packaging alternatives like tray-only or unwrapped products. These changes could reduce costs but may not fully offset the impact of tariffs. Companies like Abacus Brands are considering switching from plastic to cardboard to further cut production costs.

Consumers may have to assemble more products at home as companies aim to cut shipping costs. Product redesigns and reevaluating essential versus extra components are strategies being considered. Wedding gift retailer Groomsday is carefully assessing what items are truly necessary to include in their products to minimize costs and maintain quality.

Shrinkflation, reducing product size without lowering prices, may return as companies navigate rising costs due to tariffs. Consumer advocate Edgar Dworsky predicts companies may use shrinkflation to hide the impact of tariffs on their products. Changes in product sizes or weights could be a way for companies to offset increased expenses.

Read more: No batteries? Thinner packaging? US businesses look for ways to offset tariffs