President Donald Trump ordered 25% tariffs on imported steel and aluminum on February 11, 2025, aiming to increase domestic production. The problem is, according to the Aluminum Association, the U.S. doesn’t have enough aluminum smelting capacity to satisfy the growing needs for the material, particularly in the food industry. According to the U.S. Census Bureau, about 25% of steel and 50% of aluminum used in the country are imported, with Canada being the primary supplier.
Predictably, these tariffs could potentially lead to price hikes, particularly on items frequently bought by price-sensitive consumers. Think of beverages like beer and soda, canned foods, foil-packaged foods, snacks, dairy products, etc. This was confirmed by major packaging companies Amcor, Ball, and Crown, who predicted that the costs will be passed down to producers, then to retailers, and finally to customers.
As a result, low-income consumers, especially those on food assistance programs like SNAP, may switch to cheaper imported products, which undermines the purpose of the tariffs to begin with. Ultimately, it could put the nation’s food safety at risk. And if Trump imposes further tariffs on European goods (such as pulp, paper, and packaging materials), the cost of packaged goods could rise even further.
The Can Manufacturers Institute (CMI) has also raised red flags about the impact on food packaging. “The new tariffs are going to increase the cost of tin plate steel used to make food cans,” said CMI President Robert Budway in an interview for Packaging Dive. “These costs will be passed down the supply chain—from food producers to retailers and, ultimately, consumers. The expected result: higher food prices and added pressure on already strained household budgets.”
Apart from the limited aluminum smelting capacity, the U.S. also can’t cover the food industry’s needs for tin mill steel, with 70% of the material being imported today. In fact, during President Trump’s first term, the Section 232 tariffs had a negative effect on domestic tin mill production, with nine manufacturing lines being closed.
Another point of concern is potential retaliatory tariffs from trade partners and broader global trade tensions. Notably, Canadian Prime Minister Justin Trudeau said the government will stand up for businesses and workers. Meanwhile, European Commission President Ursula von der Leyen said the EU will introduce “firm and proportionate countermeasures.”
