Following President Donald Trump’s announcement to increase steel and aluminum tariffs from 25% to 50%, Conagra Brands CFO David Marberger stated that the company will take steps to counteract the impact of the duties.
Marberger emphasized the challenges posed by the doubled tariffs on steel and aluminum, particularly affecting the company’s canned goods business. He mentioned plans to mitigate the effects of the tariffs during a keynote interview at the CFO Leadership Council’s spring conference in Boston.
The trade situation has been described as constantly evolving, requiring ongoing communication and adaptation. Marberger highlighted the importance of staying informed and agile in response to changing tariff policies.
During the company’s earnings call in April, Marberger had mentioned the monitoring of tariff policy changes and the potential impact on the business. The company anticipated a limited impact on fiscal Q4 expenses and outlined strategies to offset cost increases through various means.
Conagra Brands sources tin plate steel for packaging from overseas due to the limited availability of such steel lines in the U.S. This reliance on international sourcing has necessitated the company to navigate the implications of tariffs on its operations.