American consumers could soon face higher prices for canned goods and beverages as new tariffs on imported steel and aluminum take effect, industry experts warn. U.S. President Donald Trump's announcement of sweeping 25% tariffs on steel imports—without exemptions for trading partners like Canada and Mexico—has sparked concerns about ripple effects across supply chains.
The Can Manufacturers Institute reports 70% of steel used for U.S. food cans is imported, primarily from Germany, the Netherlands, and Canada. 'These tariffs undermine food security and supply resiliency,' said CMI President Robert Budway, noting canned goods account for over half of U.S. fruit and vegetable consumption.
Coca-Cola CEO James Quincey flagged potential price hikes for canned beverages and hinted companies might pivot to plastic packaging. The move comes as aluminum tariffs previously cost the beverage industry $1.7B (2018–2022), according to the Beer Institute.
Craft breweries—already grappling with inflation—could be hit hardest. Aluminum cans represent 75% of U.S. craft beer sales, per the Brewers Association. 'Our small brewery owners and customers will pay the price,' the Illinois Craft Brewers Guild tweeted.
While framed as a national security measure, critics argue the tariffs may strain household budgets and complicate inflation control efforts. The policy's impact on consumer goods could emerge as a key economic issue ahead of the 2024 election cycle.
Reference(s):
Who pays for tariffs? Price of canned goods in U.S. could rise
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