Tariffs and the American Food Supply Chain

President Donald Trump’s tariffs on steel have prompted a shift that many in Washington would not have foreseen just five years ago: they have renewed focus on American economic security. And that’s significant.

The trade discussion has transformed fundamentally, benefiting American workers and manufacturers. However, even if the overall argument seems convincing, not every detail of the policy works seamlessly from the outset. There’s a particular issue in the food supply chain that, if overlooked, could undermine the strategy the tariffs were intended to support.

Here’s where the problem lies.

Tinplate steel is essential for food cans, and American producers can only meet less than a third of domestic demand. This forces American can manufacturers to turn to imports, which increases their costs significantly due to current tariff levels.

The tariffs are signaling the right message, but since 2018, domestic tinplate production has actually dropped as manufacturers transition to more lucrative materials.

The gap is widening rather than closing.

The supply chain isn’t overly complex, but it’s crucial to track it through to the end.

Tinplate becomes cans, which food processors fill. These finished products are then distributed to grocery store shelves.

When the costs of the initial inputs rise, that effect ripples throughout the supply chain. Meanwhile, foreign manufacturers can produce and fill cans abroad, avoiding many of those increased costs altogether. They can then sell their products in American stores at a lower price.

This isn’t just a hypothetical scenario—imports of filled food cans have been steadily increasing.

Grocery retailers operate on tight margins. They don’t make decisions based on ideology; they simply look at prices.

If imported canned goods are cheaper, they’ll get more shelf space. It doesn’t happen all at once but gradually, through successive sourcing choices. If you take a look at a can of peaches in your local store, you’ll see evidence of this on the label.

Farmers are affected too, often in less visible ways. When costs increase for food processors—who are their customers—they tend to become more price-sensitive, pushing pressure back throughout the supply chain.

A tariff on tinplate that was designed to bolster American industry could inadvertently be tightening the screws on American agriculture if the domestic capacity shortfall isn’t addressed.

This situation doesn’t weaken the broader argument for the tariffs; in fact, it strengthens it. China and other global players are actively growing their influence in both tinplate and finished canned goods. They’re already eyeing opportunities created by this gap in domestic capacity.

Addressing this gap isn’t a retreat—it’s about seeing the job through.

So, what’s the solution?

A focused reduction or removal of tinplate tariffs could help, supporting American can manufacturers while alleviating cost pressures on food processors. This would also help protect the farmer-to-shelf supply chain that the administration has been working to fortify and would limit foreign competitors looking to take advantage.

There’s another route to explore as well: applying the 50% steel tariff to imported filled canned goods—those finished products coming from countries like China and Greece. Right now, those imports escape the cost burdens that American producers shoulder. Fixing this imbalance doesn’t necessitate a new policy; it means consistently applying the existing one.

Polls indicate that 77% of voters support the Trump administration making adjustments to tariffs to safeguard U.S. food and manufacturers, along with boosting domestic tin mill steel production for increased can manufacturing.

Congress also has a role in this. Currently, most Americans are unaware of the true origin of their canned foods. With imports on the rise, this is an important issue. The bipartisan American CANS Act—backed by six Republicans and six Democrats—could change that by mandating country-of-origin labeling on canned foods.

The label on a can of corn or peaches often doesn’t offer that choice. Passing the American CANS Act would be a practical step that transforms a trade policy success into tangible actions for families when they shop.

President Trump has laid the groundwork. The adjustments needed are straightforward: tweak tinplate tariffs and apply the same standards to imported finished canned goods as those that American producers must adhere to. This isn’t about changing course; it’s about completing the task at hand.