Steel Tariffs: How They're Squeezing the Canned Food Industry

Understanding the Impact of Tariffs on the Canned Food Market

The simple tin can is proving to be one of the toughest tests for President Trump's tariffs. Just over a year ago, these tariffs were instituted to protect domestic steel production, but they are now causing ripple effects that reach directly into kitchens across America.

The core issue lies in the fact that imports of the kind of steel used to create cans surged in 2025, with American manufacturers still heavily dependent on overseas supplies, which are now made prohibitively expensive due to the tariffs. Scott Breen, president of the Can Manufacturers Institute, succinctly captures this sentiment: “We have to import all this tin plate. There's not any more being produced here than there was before.”

The Legal Landscape Surrounding the Tariffs

Unlike some of Mr. Trump's earlier tariffs, which courts have since overturned, the steel levies remain legally robust, primarily due to being imposed under a national security provision known as Section 232 of the Trade Expansion Act. At 50 percent, these tariffs are among the highest imposed by this administration.

“A can makes up about a third of the wholesale price of canned fruits or vegetables.”

As the tariffs inflate the cost of tin plate, we can see how canned food prices inevitably rise, burdening households that depend on such essential staples as corn and beans. According to government data, in March, canned fruits and vegetables cost 5.7 percent more than they did a year prior, in stark contrast to a modest 2 percent increase for all food consumed at home.

Domestic Production and Future Prospects

For context, over 80 percent of the tin plate consumed in the U.S. last year was imported. This is critical as tin plate is produced in lower volumes than steel types commonly associated with automotive or construction industries, making it a less appealing business venture for large domestic manufacturers.

However, amidst ongoing challenges, U.S. Steel announced plans to ramp up production by restarting operations next year at its facility in Gary, Indiana. This marks a potential inflection point, offering a glimpse of hope in an otherwise precarious situation.

The Role of Trade Policies

A representative from the Commerce Department points out that the closure of tin plate mills under President Biden created an environment that could be advantageous for U.S. Steel's ventures. Still, experts warn that even with this new domestic supply, American can makers will likely continue to import a significant portion of their tin plate—over two-thirds, according to industry analysts.

Dave Luptak, CEO of Ohio Coatings, which manufactures tin-coated steel, observes the complex landscape they navigate. His company imports approximately 75 percent of its thin, uncoated steel, incurring the added effect of tariffs. Despite initially supporting the tariffs to shield American manufacturers, he eventually calls for reconsideration, seeking temporary waivers to allow U.S. companies time to adjust.

Historical Context and Current Trends

The downward trend in domestic production is noteworthy. A decade ago, American producers manufactured over 60 percent of the tin plate required, a figure that has since plummeted to less than 20 percent. U.S. Steel is now one of only two significant producers left in the industry, with some analysts suggesting that government influence—through the so-called “golden share” acquired during U.S. Steel's sale to Nippon Steel—could have catalyzed the decision to restart production.

“It's kind of hard to know what's economics and what's politics there.”

Despite the reopening of this facility, there are pressing questions about how much tin plate will actually be produced post-restart. Amanda Malkowski, a spokeswoman for U.S. Steel, admits that the volume will depend on various factors.

Looking Forward: A Shift in Market Dynamics

Interestingly, as tariffs elevate the cost of American canned goods, imports of foreign canned products are rising—a troubling dynamic fueled by a loophole exempting these foreign cans from tariffs when they contain food. The Can Manufacturers Institute has urged the administration to impose tariffs on these imports, but such moves have yet to materialize.

The ramifications of this ongoing tariff saga are significant. Industry experts, including Scott Lincicome of the Cato Institute, argue that raising domestic production costs inhibits global competitiveness. “When you raise the cost of making stuff in the United States, in this case, making canned foods, you make production here less competitive globally,” Lincicome states emphatically.

Conclusion

In summary, the current landscape of the canned food market is a multifaceted issue driven by national policies, global dynamics, and domestic production challenges. As U.S. Steel embarks on its production resurgence, the repercussions of tariffs will continue to be felt, shaping not just prices at the grocery store, but ultimately the sustainability of American industries.