US strengthens metal tariffs, raising packaging costs and aiding canned imports

US President Donald Trump has signed a proclamation to strengthen tariffs imposed on imported steel, aluminum, and copper to “more effectively address the national-security threat posed by such imports.” 

However, industry groups warn that the tariffs are raising the cost of packaging for US producers while benefiting foreign competitors.

In response to the proclamation, Scott Breen, president at the Can Manufacturers Institute (CMI), says: “The Trump administration’s recent aluminum and steel tariff actions keep costs high to make metal cans in the US and low to import canned goods from foreign competitors, like China.”

Breen argues that the tariff is opposite to an “America First” trade agenda, a policy the Trump administration is said to pursue. 

“In our derivative inclusion requests, we asked President Trump to level the playing field for US farmers and can manufacturers, who have been forced under the high Section 232 metal tariffs to unfairly compete against foreign-filled canned foods and beverages not subject to the same tariffs. Instead, these tariff rate adjustments keep the status quo, solidifying a win for foreign canned goods.”

Favoring cheaper imports

Breen notes that the recent proclamation has opened the “floodgates to more foreign-filled cans on grocery store shelves.” 

“Keeping foreign canned goods at lower tariffs undermines President Trump’s promises to make groceries affordable again, support US manufacturing, and prioritize US farmers. The Trump administration must provide immediate, targeted tariff relief for US can manufacturers and food producers, which will support those key sectors and lower the cost of critical US canned goods,” he states.

“We remain committed to working with the administration to enact trade policies that, first and foremost, benefit US can manufacturers, farmers, and working families.”

American Fruit & Vegetable Coalition coordinator Denise Bode points out that 94% of fruit and 53% of vegetables served to children in US schools are sourced abroad.

“US jobs and food production are at stake. Already, more than a dozen US fruit and vegetable canners have been driven out of business by cheap foreign imports. The US has become a net food importer, and the lack of action to stop these imports is making this trade imbalance even worse.”

Increasing production costs

In February, Pearce Crosland, senior director at CMI, told Packaging Insights that tariffs and trade are the main challenges facing the US can manufacturing industry. “Current policies and tariffs on tinplate and aluminum are harming the can manufacturing industry, and impacting US consumers and making US goods less competitive on a global stage.”

He highlighted that approximately 80% of all tinplate steel used in the US manufacturing of tinplate steel — the metal used to make food cans comes from global sources.

Bart Watson, president and CEO at the Brewers Association, expresses similar concerns in response to the recent proclamation. “Small brewers are a quintessential part of the domestic manufacturing economy, using US-made agricultural materials and aluminum cans. We agree with the administration that the government has a responsibility to support manufacturers making US products with US inputs, but unfortunately, this updated tariff schedule takes us in the opposite direction.”

“By continuing to tariff key packaging components such as sheet aluminum, the administration’s policy taxes domestic production while now allowing importers to bring in finished beer in lower or tariff-free cans. We believe the solution is to lower costs for US producers, and ultimately consumers, by creating a lower tariff bridge while more US capacity for domestic aluminum comes online.”