President Donald Trump has decided to increase steel and aluminum tariffs to 50%, a move that has packaging manufacturers concerned about the impact on the food industry.
Despite a recent court ruling blocking many tariffs, Trump’s decision aims to protect the U.S. steel industry. During a visit to a Pittsburgh steel factory, he highlighted Japan-based Nippon Steel’s pending acquisition of U.S. Steel as part of this effort.
However, industry groups warn that the higher tariffs could harm various U.S. businesses in metal supply chains, leading to increased costs for businesses and consumers alike.
The Can Manufacturers Institute President, Robert Budway, expressed strong opposition to the doubling of steel tariffs, citing concerns about the impact on canned goods prices and American families who rely on these products.
Following earlier tariff announcements, metal packaging manufacturers like Ball and Crown raised concerns about cost increases and the potential burden on consumers. The Aluminum Association also emphasized the need for a tailored approach to tariffs to support domestic production.
The Aluminum Association is working with the Trump administration to address the tariffs’ details and ensure access to necessary aluminum resources. They stress the importance of differentiating between countries flooding the market and reliable partners like Canada.
Budway from the Can Manufacturers Institute also calls for a more targeted approach to tariffs, expressing concerns about foreign competition undercutting American producers and risking food security. He specifically requests tariff relief for tin mill steel and aluminum used in American can production.
As foreign leaders consider potential countermeasures, the European Commission has expressed regret over the tariff increase and plans to advocate for tariff reductions or eliminations with the U.S.
It is crucial to address these trade issues thoughtfully to support domestic industries and maintain economic stability amidst global challenges.
Sarah Zimmerman contributed to this story.