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Yahoo
26-07-2025
- Business
- Yahoo
What plastic, paper and metal commodity experts are watching with tariffs
This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. Editor's note: This story is part of a series highlighting takeaways from a July 23 virtual event hosted by Packaging Dive, Supply Chain Dive, Manufacturing Dive and Trucking Dive. Register here to watch the replay on demand. It's normal for commodity markets to ebb and flow due to a variety of domestic and global factors, but recent tariff impacts and changes in the U.S. economy in 2025 have thrown a new wrench in markets for virgin and recycled aluminum, plastic and fiber commodities. Experts in plastics, paper and metals offered an overview of these factors during the 'Supply Chain Outlook: Trends and Risks to Watch in 2025' event on Wednesday. The Trump administration's tariffs have resulted in market uncertainty, and that's playing out in different ways depending on the commodity, speakers said. These were some key takeaways from the event: Varied trade exposure, but also opportunities for US plastic manufacturing In the plastics industry, tariff exposure varies by sector. For example, plastic resins face less uncertainty compared with the machinery and molds sectors, said Perc Pineda, chief economist at the Plastics Industry Association. 'By and large, the plastics industry's exposure to trade is only about 20%,' he said, noting that there's currently 'a lot' of U.S. plastics production capacity and low utilization. 'If there is a need for import substitution because tariff rates are so high it's cost prohibitive, I am confident that domestic manufacturing could actually step in,' he said. The United States is a net importer of recycled plastics materials, he said. At the same time, domestic virgin resin production has increased by 5% year over year, which he sees as a sign that such production could help backfill demand if recycled commodities become harder to source due to tariffs. In June, virgin resin prices rose by 0.3%, which he sees as a sign that higher tariffs haven't automatically translated to higher inflation. However, the U.S. imports about 70% of the machinery it needs for plastic production, plus around half of needed molds, leading the industry to call for certain tariff exemptions in these sectors, he said. The industry is monitoring the situation, but likely won't see the true effects of such tariffs for several months. 'I know things are evolving, but I am hopeful, because I don't think the economy can continue with a scenario like this, when there's so much uncertainty. It has long-term effects, and the knock-on effects on the economy are going to be broad and wide.' Section 232 tariffs continue to impact steel and aluminum can manufacturing Section 232 aluminum and steel tariffs, which have been in place since 2018, went from 25% to 50% earlier this year. That has increased costs for aluminum and steel cans used for food, beverages and other items. The Can Manufacturers Institute and other groups are calling for specific tariff exemptions on aluminum imported from Canada, as well as on tin plate typically used to make steel cans, said CMI President Scott Breen. The industry prides itself on its recycled content use, Breen said. The average aluminum beverage can is made of about 71% recycled content, 'but that does mean that 29% is virgin or new aluminum, and most of that virgin aluminum is imported,' mainly from Canada, he said. For steel cans, nearly 80% of tin plate is imported, and 'we would love to purchase more domestic tin plate, but it's just not produced at the levels we need,' he said. Since 2018, nine of the 12 tin plate lines available in the U.S. have shut down, he said. Breen said continued tariffs will likely lead to increased food prices, citing a study from the Consumer Brands Association estimating a 9% to to 15% increase in the cost of canned goods. Broader economic trends, not tariffs, driving US fiber trade for now Meanwhile, broader changes in the global economy are making more of an impact on the fiber industry than tariffs specifically are, said Terry Webber, vice president of industry affairs for the American Forest & Paper Association. Paper is 'a commodity that tracks pretty closely to general economic performances. There's more economic activity, there's more paper and paper-based packaging consumed,' he said. The U.S. exports about 6 million tons of packaging papers globally. However, about 70% of the nation's external fiber trade is with Canada and Mexico, 'so as long as that trading relationship continues, that's going to cover the lion's share of the business we do,' he said. U.S. exports of recovered fiber to global markets have been declining in recent years, and the U.S. has focused on domestic investments meant to expand manufacturing that uses recycled fiber, namely OCC and mixed paper, he said. He estimated that AF&PA companies have announced about $7 billion in recent investments, 'so we're seeing a long-term positive trend in U.S. mill consumption that's helping to offset some of those changes that we're seeing in global trade flows.' At the same time, the U.S. has seen multiple notable mill closures in the first half of 2025. Webber attributed that activity to the industry adjusting its output to market demands. 'As capacity is coming offline, we're making investments in new capacity' while making the overall supply chains more efficient, he said. Webber noted AF&PA is tracking possible tariff impacts on equipment, which is typically imported from regions like Europe. 'It would be unfortunate if the spending and investment that our companies are conducting becomes subject to tariffs," he said. Recommended Reading ISRI says its rebrand to ReMA reflects the recycling industry's modern values Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Steel and aluminium tariffs threaten US grocery prices
President Donald Trump's decision to double tariffs on imported steel and aluminium to 50% has raised concerns about potential increases in grocery prices across the United States. The tariffs, effective from June 4, 2025, are intended to bolster domestic metal industries but may have unintended consequences for consumers. Steel and aluminium are integral to food packaging, particularly for canned goods. The Can Manufacturers Institute warns that the increased tariffs could lead to higher production costs for items like canned vegetables, soups, and beverages. These costs are likely to be passed on to consumers, potentially raising the price of everyday grocery items. For instance, a can of sweet corn priced at 45 cents could see an increase of up to 5 cents, representing an 11% hike. While this may seem minimal, for households relying on budget-friendly canned goods, especially those using SNAP benefits, the cumulative effect could be significant. In response to rising metal costs, some manufacturers might consider switching to alternative packaging materials like plastic. However, this shift could lead to increased demand and prices for plastics, further impacting the cost of packaged foods and beverages. Companies such as Coca-Cola have previously indicated a potential move towards plastic bottles if aluminium prices continue to rise. This potential shift not only affects pricing but also raises environmental concerns, as increased plastic use could contribute to higher plastic waste. Beyond packaging, the tariffs are expected to influence various sectors of the economy. Industries reliant on steel and aluminium, including automotive and construction, may experience increased production costs. These costs could trickle down to consumers in the form of higher prices for goods and services. Economists caution that while the tariffs aim to protect domestic industries, they may also contribute to inflationary pressures, affecting the overall cost of living. The Congressional Budget Office projects that these tariffs could raise the average annual inflation rate by 0.4 percentage points in 2025 and 2026. As the effects of the tariffs unfold, consumers may need to prepare for potential increases in everyday expenses, particularly at the grocery store. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "Steel and aluminium tariffs threaten US grocery prices" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
04-06-2025
- Business
- Miami Herald
Higher U.S. Tariffs on Steel and Aluminum Imports Take Effect
EDITORS NOTE: EDS: SUBS to expand and revise throughout; SUBS headline; ADDS Mega to contributor line; UPDATES list of related stories. NOTE: Story first moved today at 12:52 a.m. ET.); (ART ADV: With photo.); (With: U.S.-MANUFACTURING-OUTLOOK, TARIFFS-BRITAIN, CHINA-MINERALS-SMUGGLING); Ana Swanson reported from Washington, and Ian Austen from Ottawa, Ontario. Emiliano Rodríguez Mega contributed reporting. WASHINGTON -- U.S. tariffs on steel and aluminum imports doubled Wednesday, as President Donald Trump continued to ratchet up levies on foreign metals that he claims will help revitalize American steel mills and aluminum smelters. The White House called the increased tariffs, which rose to 50% from 25% just after midnight Eastern time, a matter of addressing "trade practices that undermine national security." They were announced during Trump's visit to a mill run by U.S. Steel last week, and appear to be aimed at currying favor with steelworkers and the steel industry, including those in swing states like Pennsylvania, where U.S. Steel is based. The higher levies have already rankled close allies that sell metal to the United States, including Canada, Mexico and Europe. They have also sent alarms to automakers, plane manufacturers, homebuilders, oil drillers and other companies that rely on buying metals. In an executive order, Trump said the higher tariffs would "more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries." Kevin Dempsey, the president of the American Iron and Steel Institute, an industry group, praised the move. He said China and other countries oversupplied the international market, making it harder for U.S. producers to compete. "Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers," Dempsey said. But companies that use steel and aluminum to make their products criticized the tariffs, saying they would add costs for American consumers. Robert Budway, the president of the Can Manufacturers Institute, said doubling the steel tariff would further increase the cost of canned goods at the grocery store. "This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers and can makers," he said. The increase Wednesday is the latest in a mounting array of import taxes Trump has announced since returning to the Oval Office in January, including the 25% tariff on steel and aluminum in March. Taken together, the president's trade tactics have increased concerns of a global downturn and heightened corporate America's worries about the cost of doing business. Economists have pointed out that tariffs on factory inputs such as metals risk slowing U.S. manufacturing, since they raise prices for factories. By adding to the cost of making cars, drilling for oil and building data centers, higher steel tariffs could slow other goals of the Trump administration. An economic analysis published by the U.S. International Trade Commission, an independent, bipartisan government agency, suggested that while the steel and aluminum tariffs levied in Trump's first term helped American steel and aluminum producers, they hurt the broader economy by raising prices for many other industries, including automaking. U.S. unions and major companies like Cleveland-Cliffs and U.S. Steel, which have significant lobbying networks, have argued that tariffs are necessary to keep them in business. After struggling financially for years, U.S. Steel agreed in late 2023 to be acquired by Nippon Steel of Japan, though Trump will make the final call on whether the merger can go through. Foreign governments have bristled at the idea that their steel exports are a national security threat to the United States, in part because American demand for the metals far exceeds the country's current ability to produce them. Canada is the largest foreign supplier of both steel and aluminum to the United States. Mexico, Brazil, South Korea and Germany are major suppliers of steel, while the United Arab Emirates, China and South Korea provide the United States with small amounts of aluminum. On Wednesday, President Claudia Sheinbaum of Mexico called the increased tariffs an unjust order with no legal basis. She also warned that her country could react next week with its own measures. "We disagree with it, we don't think it's fair or sustainable because it makes everything more expensive," she said, adding that Mexican officials are set to meet with their U.S. counterparts to negotiate a deal. "If this is not achieved, then we will also be announcing some measures that we must necessarily take to protect and strengthen jobs. It's not a matter of revenge or retaliation." Mexico's steel trade with the United States has historically shown a deficit, meaning Mexico imports more steel than it exports. On Tuesday, Marcelo Ebrard, Mexico's economy minister, said the country would demand to be spared from the latest tariffs. Britain was granted an exemption from the steel and aluminum levies as part of a preliminary deal struck with the U.S. last month, and it remains to be seen if other countries receive similar treatment as part of trade deals. Canada, which is both the largest exporter of steel to the United States and the largest importer of American steel, followed the initial 25% tariff from Trump with a retaliatory tariff. But to allow manufacturers to adjust and find new sources of supply, it suspended the tariffs' start until October. Some Canadian steel manufacturers have said they believe overseas producers are now selling steel once intended for the U.S. market in Canada at unfairly low prices. Prime Minister Mark Carney said Wednesday that Canada would not respond immediately to the escalation. "We are in intensive discussions right now with the Americans on the trading relationship," he said, adding: "Those discussions are progressing." Unifor, Canada's largest private sector union, was among the groups that called for immediate retaliation Wednesday. They were joined by Doug Ford, the premier of Ontario, the province with the three largest Canadian steelmakers. "We can't sit back and let President Trump steamroll us," Ford told reporters in Toronto. "Every single day that it goes by gives uncertainty through the sectors, it adds additional cost on the steel. So we need to react immediately." Catherine Cobden, the president of the Canadian Steel Producers Association, a trade group, said in a statement that doubling the tariff on imported steel "essentially closes the U.S. market to our domestic industry." The previous 25% tariff on steel already had an effect on Canada's producers. The steel association estimates that since the tariff took effect in March, steel shipments to the United States from Canada have fallen 30%. "Steel tariffs at this level will create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border," Cobden said. The Aluminium Association of Canada said in a statement Tuesday that the expanded tariff "makes Canadian exports to the U.S. economically unviable" and that "the industry may be forced to diversify trade toward the European Union." Electricity accounts for about 40% of the cost of smelting aluminum, and the trade group estimated that replacing Canadian aluminum with American production would require the expansion of U.S. power generation equivalent to four Hoover Dams. "The Canadian industry supports the U.S. goal of increasing domestic aluminum production capacity from 50% to 80%," the group said. "Punitive tariffs do not create the certainty needed for long-term, capital-intensive investments. Even with higher domestic output, the U.S. will continue to rely on substantial aluminum imports." Industry analysts have said the U.S. tariffs have not significantly curbed shipments from Canadian aluminum mills. The U.S. aluminum industry is too small to significantly replace imports from Canada without expansion and investment. Century Aluminum, a U.S. aluminum maker, said last year that it would build the first new aluminum smelter in the United States in half a century, doubling domestic production. But the United States would remain dependent on imports for most of its aluminum. This article originally appeared in The New York Times. Copyright 2025
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Business Standard
04-06-2025
- Business
- Business Standard
Spike in steel tariffs could imperil Trump promise of lower grocery prices
President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The staggering 50 per cent levies on those imports took effect Wednesday, stoking fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. Rising grocery prices would be part of the ripple effects, says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies without aiding a long-term US manufacturing revival. Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and often taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to even further secure the steel industry in the US. That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers, insists Can Manufacturers Institute president Robert Budway. Doubling the steel tariff will further increase the cost of canned goods at the grocery store. Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, the cost is levied upon millions of American families. Food companies were already warily assessing the administration's tariffs before the latest hike. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. We can't get all of our materials from the US because there's no supply, ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products canned foods like tuna, chicken broth and cranberry sauce economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. If a John Deere tractor costs 25 per cent more, consumers pay the price for that, Hafezi says. This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease. Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh on Friday. In a statement, David McCall, president of the United Steelworkers International union, called tariffs a valuable tool in balancing the scales but wider reforms of our global trading system" are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost, Waldkirch says. You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.
The Hill
04-06-2025
- Business
- The Hill
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK (AP) — President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The staggering 50% levies on those imports took effect Wednesday, stoking fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and often taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh on Friday. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system' are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at msedensky@ and
