Prices for cans of soup, beans, and even pineapples are likely to rise—not necessarily because of the food inside, but due to the can itself.
The Trump administration’s recent decision to increase tariffs on imported steel by 50% is projected to elevate the cost of tin-coated steel, a crucial component for food cans.
Experts in the industry warn that this could lead to an increase in prices for major food brands, like Campbell’s, Hormel, and Del Monte, potentially ranging from 9% to 15%.
This means that a can of vegetables priced at $2 could see a rise of about 30 cents. That’s according to insights from the Wall Street Journal.
“Consumers in America will face higher prices for cans,” noted Dan Dietrich, vice president of strategy at Trivium Packaging, in a chat with the Journal.
The tariffs announced on June 4 are designed to boost demand for domestically produced steel by making imported options less competitive. However, manufacturers indicate that the available domestic supply of ultra-thin tin-coated steel for food cans isn’t enough to satisfy ongoing demand.
Most steel in the U.S. is derived from scrap and doesn’t meet the purity standards needed for food-grade tin plates.
“We’ve observed a significant demand for tomato products,” stated Robert Gatz, general manager at Can Corp. of America, a firm in Pennsylvania that focuses on canned tomatoes.
Can Corp. produces about a billion cans annually, yet only 12% of the tin plates are sourced from U.S. suppliers, Gatz shared with the Journal.
Across the industry, approximately 75% of the tin plates utilized in the U.S. are imported from places like Europe and Canada. In 2023 alone, around 1.5 million tonnes of tin plates were imported into the country, according to data from the Census Bureau.
While U.S. Steel still manufactures tin plates, it has scaled back its operations in recent years. Another significant domestic player, Cleveland Cliffs, closed its tin plate factory in Wayton, West Virginia, this year.
“Once a change is made, it’s hard to go back,” said Goncalves, speaking to reporters last week.
Manufacturers predict that the initial 25% tariffs from March had already led to a price hike of 7% to 8%. Doubling those tariffs could push prices even higher. These increased costs will naturally pass down to food companies and ultimately consumers.
Thomas Hunter, co-president of McCall Farms, a canned vegetable producer in South Carolina, mentioned that they have already been dealing with rising costs related to labor and produce over the last five years.
Now, the spike in packaging prices could make canned goods even less appealing.
“Our main worry is that canned vegetables may reach a price point where consumers start to shy away from them,” Hunter explained.
Cans, known for their ability to hold staple foods and their long shelf life, might see manufacturers shift to cheaper packaging options if costs get too high.
“We’re approaching a tipping point along with many clients,” remarked Rick Huether, CEO of Maryland’s Independent Can Co.
“This might just push them towards plastic packaging instead.”
The Consumer Brands Association alerts that about 20,000 jobs in U.S. food production could be at risk if consumers begin to move away from canned products due to rising costs.
A White House spokesperson, Kush Desai, mentioned in an email that strengthening domestic steel and aluminum production is vital for defense and national security.
“The Trump administration is focused on revitalizing manufacturing, which is crucial for our economy and security. They continue to push for supply-side reforms, including deregulation and tax cuts that can offer economic relief to Americans,” Desai stated.
He further added, “The commitment to steel and aluminum production, along with ongoing inflation forecasts, indicates it’s possible to achieve both economic growth and security goals.”
