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Miami Herald
2 days ago
- Business
- Miami Herald
Trump tariffs could hike canned food prices up to 15%, trade group says
Dive Brief: The 50% tariff on imported steel levied by the Trump administration could increase canned food prices between 9% and 15%, according to the Consumer Brands trade group estimated up to 20,000 U.S. food manufacturing jobs could be at risk if tariffs cause consumers to curtail their purchases of higher-priced canned goods and CPG companies opt to switch away from tin-plate steel to cheaper packaging steel tariffs are impacting a slew of products in the food space, including sauces, seafood, soup and vegetables. Dive Insight: As the White House doubles tariffs on steel and aluminum, CBA moved quickly to underscore the negative impacts they could have on manufacturing and consumer shopping habits. The CBA, whose members include Coca-Cola, The Campbell's Company and Del Monte Foods, noted that while the majority of ingredients and inputs are sourced from the U.S., there are exceptions. A major one is tin mill steel. Domestic can makers and canned food producers import nearly 80% of the material from foreign trade partners, Robert Budway, president of the Can Manufacturers Institute, said last week. Conagra Brands CEO Sean Connolly said in April that his company has "no choice" but to import the majority of its canned food packaging, estimating about 75% of the tin plate steel lines in the U.S. have been eliminated since 2018. CFO David Marberger said last week that the Hunt's tomato and Wendy's canned chili maker was working through how it will "mitigate" the higher cost for the material on its business. "Unfortunately, the domestic steel industry does not produce tin mill steel in the quality or quantities needed by U.S. can makers," Tom Madrecki, vice president of supply chain resiliency at CBA, said in a statement. "The Trump administration should fine tune its approach to recognize supply chain dependencies and protect all U.S. manufacturers, workers and consumers." A handful of other food and beverage manufacturers have warned that tariffs will impact their operations. Campbell's, which imports tinplate steel for cans and canola oil for chips, noted trade headwinds could cut into its fiscal-year earnings by 3 cents to 5 cents a share. Coca-Cola said in February that the Sprite and Dasani maker may shift some products sold in aluminum cans to PET bottles if input costs rise in light of new tariffs. Copyright 2025 Industry Dive. All rights reserved.
Yahoo
3 days ago
- Business
- Yahoo
Trump tariffs could hike canned food prices up to 15%, trade group says
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. The 50% tariff on imported steel levied by the Trump administration could increase canned food prices between 9% and 15%, according to the Consumer Brands Association. The trade group estimated up to 20,000 U.S. food manufacturing jobs could be at risk if tariffs cause consumers to curtail their purchases of higher-priced canned goods and CPG companies opt to switch away from tin-plate steel to cheaper packaging alternatives. The steel tariffs are impacting a slew of products in the food space, including sauces, seafood, soup and vegetables. As the White House doubles tariffs on steel and aluminum, CBA moved quickly to underscore the negative impacts they could have on manufacturing and consumer shopping habits. The CBA, whose members include Coca-Cola, The Campbell's Company and Del Monte Foods, noted that while the majority of ingredients and inputs are sourced from the U.S., there are exceptions. A major one is tin mill steel. Domestic can makers and canned food producers import nearly 80% of the material from foreign trade partners, Robert Budway, president of the Can Manufacturers Institute, said last week. Conagra Brands CEO Sean Connolly said in April his company has 'no choice' but to import the majority of its canned food packaging, estimating about 75% of the tin plate steel lines in the U.S. have been eliminated since 2018. CFO David Marberger said last week that the Hunt's tomato and Wendy's canned chili maker was working through how it will 'mitigate' the higher cost for the material on its business. 'Unfortunately, the domestic steel industry does not produce tin mill steel in the quality or quantities needed by U.S. can makers,' Tom Madrecki, vice president of supply chain resiliency at CBA, said in a statement. 'The Trump administration should fine tune its approach to recognize supply chain dependencies and protect all U.S. manufacturers, workers and consumers.' A handful of other food and beverage manufacturers have warned that tariffs will impact their operations. Campbell's, which imports tinplate steel for cans and canola oil for chips, noted trade headwinds could cut into its fiscal-year earnings by 3 cents to 5 cents a share. Coca-Cola said in February that the Sprite and Dasani maker may shift some products sold in aluminum cans to PET bottles if input costs rise in light of new tariffs. Recommended Reading Conagra seeking to mitigate steel tariffs' impact on cans 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
02-06-2025
- Business
- Yahoo
U.S. steelmaker shares jump after Trump hikes industry tariffs to 50%
Stocks of major U.S. steel companies jumped Monday after President Trump announced he would double tariffs on steel and aluminum. Cleveland-Cliffs steel manufacturer was up 25.2% in early morning trading. Nucor Corp., one of the nation's largest steel manufacturers, and Steel Dynamics, a steel producer and metals recycler, were both up 10%. The surge in steel stocks followed an announcement by Mr. Trump on Friday that he would double tariffs on steel and aluminum from the current rate of 25% to 50%. The 25% tariffs, announced in February, were enacted under Section 232 of the Trade Expansion Act of 1962, which gives the president authority to restrict imports he deems a national security threat. The new 50% tariffs are slated to take effect on June 4. The spike in U.S. steel tariffs is sparking concern that consumers could see prices hikes on big-ticket products, such as cars, houses and large appliances. Experts warn that grocery prices also could rise given how widely the material is used in packaging for canned goods. Steel and aluminum prices jumped Monday, according to Bloomberg. Automakers, which rely on steel and aluminum to produce vehicles, suffered early losses on Monday, with Ford shares falling 3.7% and General Motors dropping 4.1%. Robert Budway, president of trade group Can Manufacturers, told The Associated Press that manufacturers have become increasingly reliant on imported metals and that as prices climb, the cost is "levied upon millions of American families." EU says it will hit back The European Union on Monday said it is preparing "countermeasures" against the United States in response to Mr. Trump's higher tariff announcement which has roiled global markets. The 27-country trading bloc is currently in negotiations with the U.S. and has demonstrated that it is eager to strike a deal. Mr. Trump in May announced a "planned partnership" between U.S. Steel and its Japanese competitor Nippon Steel. Few details have emerged about what exactly the $14 billion deal will look like, although the White House has said it will create "at least 70,000 jobs" and that it will "ensure steel is made in America for decades to come." Stocks were mixed in early trading as investors continue to wrestle with uncertainty as a result of the Trump administration's on-again, off-again tariff policy. The markets experienced heightened volatility last week after the Court of International Trade on Wednesday sued to block tariffs imposed by the Trump administration on China, Mexico and Canada. Stock initially jumped Thursday after the decision was announced, but ultimately finished lower on Friday after a federal appeals court in Washington, D.C., temporarily suspended the trade court's decision. As the legal battle unfolds, the administration's levies remain in place. The trade court's lawsuit does not affect tariffs introduced under Section 232, which include the steel and aluminum tariffs. The wonderfully weird world of artist Luigi Serafini Fans turn out for estate sale at home of Tom Petty Watch: Italy's Mount Etna volcano erupts, spewing hot ash and lava 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
