As the 25% tariff on aluminum and steel imports goes into effect this week, trade groups in the U.S. that rely on metals are urging the Trump administration for exemptions.
Robert Budway, president of the Can Manufacturers Institute, expressed concerns about the potential inflationary impacts of the tariffs on steel and aluminum imports in a statement on Wednesday.
“Recent history has shown that trade protectionist measures can have serious consequences for the U.S. economy and domestic food security,” he said. “Aluminum and steel tariffs are putting pressure on American-made goods by significantly increasing the cost of essential production materials, making U.S.-produced food less competitive against foreign products.”
The domestic can industry, according to CMI, produces around 135 billion food, beverage, aerosol, and general line cans annually and employs over 28,000 people. Since the implementation of tariffs in 2018, nine tin mill lines in the U.S. have been shut down by tin mill steel producers.
“Currently, only three domestic production lines are operational in the U.S., meaning that American steel producers are unable to meet the demand even with the highest tinplate steel costs globally,” Budway explained. “This situation opens the door for cheaper canned foods to flood the U.S. market from countries like China and other foreign competitors.”
The Aluminum Association stated that the U.S. aluminum industry has invested over $10 billion since 2016, primarily in mid-and-downstream production and recycling.
“This growth has been driven by increasing demand, a competitive tax environment, and effective trade enforcement measures that the president has supported,” said CEO Charles Johnson in a statement. “For this growth to continue, the U.S. aluminum industry requires long-term market stability and a reliable supply of affordable metal, which is largely sourced from Canada.”
Johnson emphasized the importance of the longstanding trade relationship with Canada for the U.S. aluminum industry and called for a deal with Canada that ensures a stable supply.
According to the Aluminum Association, Canada supplies approximately two-thirds of the primary aluminum used in the U.S., with 7.71 billion pounds of aluminum imported from Canada in 2023.
In a letter addressed to Trump in February, CMI, along with American canned food producers and packaging companies like Silgan, Sonoco, Crown, and Trivium, requested exemptions from the tariffs.
Which new tariffs will impact steel and aluminum?
- Steel and aluminum: A 25% tariff on all steel and aluminum imports took effect on March 12. The EU is contemplating retaliatory measures on steel and aluminum products, among others.
- Canada and Mexico: While 25% tariffs on Canada and Mexico have been paused until April 2 for USMCA-compliant goods, they are currently in effect for non-compliant items. Mexico was the third-largest source of aluminum for the U.S. in 2023 and 2024, providing approximately 1.22 billion pounds, as per data from the Aluminum Association. Canada has implemented tariffs on U.S. steel and aluminum products worth $8.8 billion and $2 billion, respectively, as reported by the Wall Street Journal.
- China: The U.S. increased tariffs on Chinese goods to 20% on March 3. In 2023 and 2024, the U.S. imported around 646 million pounds of aluminum from China, according to data from the Aluminum Association.