Karat Packaging finalizes sourcing arrangements in South America

Karat Packaging (KRT) has finalized new sourcing arrangements and begun importing certain products from South America, further diversifying its global supply network and reinforcing its long-term cost structure. The Company also welcomed the recent U.S. reciprocal tariff reduction on Taiwanese goods to a maximum rate of 15 percent without stacking, down from 20 percent. The Company believes this change is significant for Karat, as roughly half of its global sourcing is from the region. The lower tariff environment, together with the new South American arrangements, is expected to position the Company to further enhance its cost structure and long-term financial performance.