Karat Packaging Broadens Global Sourcing Strategy with New Sourcing Arrangements in South America
Company Expects to Benefit from Recently Announced Tariff Reduction in Taiwan
CHINO, Calif., Feb. 18, 2026 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (the “Karat” or “Company”), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced it 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.
“Our new South American sourcing arrangements represent an important step in our global strategy to diversify our product sourcing and optimize costs,” said Alan Yu, Karat’s Chief Executive Officer. “Coupled with the recent substantial tariff reduction on goods from Taiwan, we expect these developments to position us to stay highly competitive, maintain attractive pricing for our customers, and improve margins as the year progresses.”
About Karat Packaging Inc.
Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings throughout the United States. Its products include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves and other products. The Company’s eco-friendly Karat Earth® line offers quality, sustainably focused products that are made from renewable resources. Karat Packaging also offers customized solutions, including new product development and design, printing, and logistics services. To learn more about Karat Packaging, please visit the Company’s website at .
Forward Looking Statements
Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the timing and expected impacts of the new sourcing arrangements and lower tariffs. Readers are cautioned that forward-looking statements are predictions based on current expectations about future events and are subject to risks and uncertainties. Actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of the Company’s most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in other Company filings with the SEC. The forward-looking statements included in this press release are made only as of the date hereof and are expressly qualified in their entirety by these cautionary statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
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