President Donald Trump’s recent decision to double steel and aluminum tariffs to 50% has sparked concerns among packaging manufacturers, especially those in the food industry. The move, which is not impacted by a recent court ruling blocking many levies, is aimed at protecting the U.S. steel industry. However, industry experts warn that these tariffs could have far-reaching consequences for businesses and consumers alike.
Can Manufacturers Institute President Robert Budway expressed strong opposition to the increase in tariffs, stating that it will lead to higher costs for canned goods at the grocery store. This additional cost will ultimately be borne by American families who rely on canned foods produced by U.S. farmers, food producers, and can makers. The announcement of the 25% tariff earlier this year had already raised concerns among metal packaging manufacturers about increased costs and their ability to pass these hikes on to consumers.
The Aluminum Association also raised concerns about the unintended consequences of the tariffs, emphasizing the need for a more tailored approach to support the domestic aluminum industry. While the Association appreciates the focus on strengthening the U.S. aluminum industry, they stress the importance of distinguishing between aluminum and steel and the need for policies that encourage domestic production.
Both the Can Manufacturers Institute and the Aluminum Association are in communication with the Trump administration to better understand the details of the tariffs and advocate for a more targeted approach. They urge the administration to reserve high tariffs for countries like China, which flood the market, while providing relief to proven partners like Canada. This approach, they argue, will ensure access to the aluminum and steel needed for economic growth while supporting domestic production.
Foreign leaders are also considering their response to the increased tariffs. The European Commission expressed regret over the sudden doubling of tariffs and plans to make a case for the U.S. to reduce or eliminate all announced tariffs, including those on steel and aluminum. The EU had previously imposed and then suspended countertariffs on U.S. imports in response to earlier metal duties.
In summary, the doubling of steel and aluminum tariffs by President Trump has raised concerns among packaging manufacturers, particularly in the food industry. Industry experts emphasize the need for a more tailored approach to tariffs that support domestic production while avoiding negative consequences for businesses and consumers. Foreign leaders are also watching closely and considering their response to these tariffs.
