Packaging Industry Raises Alarm Over Doubled Tariffs on Steel and Aluminum

Background: U.S. Increases Metal Tariffs to 50%

Former President Donald Trump announced a significant tariff increase last Friday, doubling the import duties on steel and aluminum from 25% to 50%. The new tariffs are expected to take effect this Wednesday and are not subject to a recent court ruling that limited certain trade actions. This move aims to reinforce domestic steel and aluminum manufacturing.

Packaging Sector Voices Strong Opposition

Can Manufacturers Institute Warns of Consumer Impact

The Can Manufacturers Institute (CMI) strongly opposes the tariff hike. President Robert Budway stated, “Doubling tariffs on steel will increase the cost of canned goods, affecting millions of American families who depend on affordable food options.”

Higher Costs for Food and Beverage Packaging

Major packaging producers like Ball and Crown have previously warned that tariffs raise material costs, impacting not only cans but also products such as closures, aluminum foil, and industrial drums. These costs are likely to be passed on to consumers.

Industry Response and Mitigation Plans

Greif Establishes Task Force

Greif, a global packaging company, is proactively evaluating the potential consequences. Kim Kellermann, Executive VP and COO, stated the company has “established a dedicated team to assess the impact of the 50% tariff increase and consider necessary mitigation strategies.”

Aluminum Association Calls for Comprehensive Policy

The Aluminum Association supports strengthening U.S. aluminum but warns that tariffs alone won’t drive production. Matt Meenan, Senior VP, noted that over $10 billion has been invested in domestic aluminum operations over the past decade. He emphasized the need for “affordable, reliable electricity and a robust recycling infrastructure,” calling for targeted trade enforcement and tariff exemptions for allies such as Canada.

Call for Tariff Exemptions and Strategic Trade Policy

CMI Seeks Relief for Key Packaging Materials

Budway from CMI urged the administration to exempt tinplate packaging and aluminum used in cans, much of which is currently imported due to a decline in U.S. specialized steel production. He warned that failure to do so could benefit foreign competitors and weaken U.S. food security.

“About 80% of tinplate steel is now imported,” Budway said. “Without relief, overseas food canning operations—particularly in China—will have a pricing advantage in the U.S. market.”

International Response: EU Pushes Back

The European Union expressed regret over the U.S. tariff hike and demanded the full removal of metal-related duties. The bloc also threatened to take retaliatory measures if the increased tariffs are not reversed.