Can Manufacturers Warn About Tariffs, Ask For Targeted Relief

The Can Manufacturers Institute (CMI) has raised concerns over the impact of newly enacted steel and aluminum tariffs.

What Happened: The CMI warns that tariffs will have an inflationary influence on the domestic can industry.

The Trump administration argues that these measures would protect domestic production and reduce reliance on foreign metals. But manufacturers say they will raise costs and harm competitiveness.

"While we support President Donald Trump's efforts to address unfair trade practices, tariffs on steel and aluminum will increase prices for canned foods and beverages," CMI's president Robet Budway said in a statement.

Per the Aluminum Association, Canada provides nearly two-thirds of the domestically used aluminum, while Mexico is the third-largest supplier. The new tariffs apply to all non-USMCA-compliant imports. Even compliant goods from Canada and Mexico will be subject to tariffs starting April 2. Additionally, China faces separate 20% tariffs on its aluminum exports to the U.S.

The U.S. can-making industry produces around 135 million cans annually, employing over 28,000 workers across 33 states. Nine domestic mill production lines have closed since the original 2018 tariffs on tin mill steel. That leaves only three operational facilities. CMI warns that domestic production cannot meet the demand, forcing manufacturers to rely on imports.

Numerous large companies rely on aluminum cans for manufacturing, particularly in the beverage, food, and aerosol industries. They include Coca-Cola KO, Campbell Soup CPB, and Clorox CLX.

Why It Matters: The situation will likely get worse for manufacturers, according to Japanese bank Nomura.

The firm published a special report evaluating the effects of these tariffs. The firm estimated that the effective tariff rate on total U.S. imports will rise from 2.4% in 2024 to 10.1% in 2025 due to the expanded scope of trade restrictions.

Furthermore, it warned about the retaliatory measures from key trading partners, particularly the European Union, which are likely in the coming months.

Nomura anticipates that while the current tariffs are 25%, the cumulative tariff rate on targeted steel and aluminum products could climb as high as 35% once additional country-specific penalties are layered. This would further strain industries reliant on these materials, including can manufacturing.

To prevent this outcome, CMI has called for targeted tariff relief to ensure the competitiveness of U.S.-made canned goods.

"Aluminum and steel tariffs place price pressures on American-produced goods by artificially and dramatically increasing the cost of critical production materials, making U.S.-made food less competitive against foreign products. We are calling on President Trump to provide targeted tariff relief, ensuring steel and aluminum cans and the products packaged in those cans continue to be ‘Made in America.'"

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