Today, the US canned food industry asked President Donald Trump and Commerce Secretary Wilbur Ross to exclude tinplate steel from tariffs or other restrictions based on the potential increases in manufacturing cost and American manufacturing jobs losses.
In a letter, signed by nearly 20 groups representing various segments of the canned food industry, the Trump administration was asked to exempt tinplate steel because it is not used in any defense or national security applications. Tinplate steel, which is about two percent of all steel used for can making, is already recognized by the US Department of Commerce and the International Trade Commission as a separate category.
The canned food industry makes nearly 20 billion cans annually using tinplate steel, and food can producers and supplier partners generate more than $20 billion in total economic activity in the United States and pay more than $3 billion in federal and state taxes.
The industry letter stated that tariff or trade restrictions against tinplate steel would adversely affect the food can industry and US-based manufacturing employees. The dominant issue is that US tinplate steel production does not meet domestic demand; only 58 percent of domestic demand can be met by US tinplate makers. In 2016, US demand was 2.1 million tons, while domestic tinplate production was only 1.2 million tons.
Any tariff or restriction on tinplate steel would competitively disadvantage cans compared to other forms of packaging, which are not subject to tariffs. The industry letter stated that even a small increase in the price of raw materials would create further price pressures on both can makers and food manufacturers in an already challenging economic environment.
The following groups signed the industry letter to exclude tinplate steel from any tariffs or trade restrictions: Ardagh, Ball Corporation, Bush's, California Cling Peach Association, California League of Food Processors, Can Manufacturers Institute, Crown Holdings, Del Monte Foods, Lakeside Foods, Mid-America Food Processors, Midwest Food Processors Association, Morgan Foods, National Council of Farmer Cooperatives, Northwest Food Processors Association, Pacific Coast Producers, Red Gold, Seneca Foods, Silgan Containers, Stanislaus Food Products, and Texas Food Processors Association.