Steel tariffs open 'can of worms', drive up prices
The humble tin can is the latest victim of US steel tariffs as domestic manufacturers say producing cans at home has become more expensive than importing them, despite Washington's push to bolster steel production and limit imports.
A decade ago, United States producers made 60 percent of the tinplate and other packaging steel used nationwide, according to Harbor Intelligence, a steel analysis and research company. Last year, that share fell to less than 20 percent, with imports accounting for the remaining 80 percent, The New York Times reported.
In recent years, US steelmakers have deliberately moved away from tinplate production, favoring more lucrative steel products used in cars and buildings. The trend has intensified concerns among can manufacturers, who argue that tariffs are driving up costs while doing little to restore domestic tinplate capacity.
The pressure has prompted industry groups to urge President Donald Trump to remove steel tariffs.
Scott Breen, president of the Can Manufacturers Institute in Washington, said the administration's recent tariff measures on steel and aluminum "keep costs high to make metal cans in America".
During his first term, Trump used Section 232 of the Trade Expansion Act of 1962 to impose a 25 percent steel tariff and a 10 percent aluminum tariff. On April 2, his administration restructured tariffs on steel, aluminum and copper, lowering some rates while introducing new sourcing rules.
David A. Gantz, the Will Clayton fellow for trade and international economics at Rice University's Baker Institute for Public Policy, told China Daily that US tariffs on metal and other goods imported from virtually all trading partners have a negative impact on the US economy.
The United States imports much of its canned food from Asia, South America and Europe. In the US market, the cost of a can accounts for one-third of the wholesale price of canned fruits and vegetables. According to The New York Times, the tariffs have driven up not only the price of tinplate, but also the cost of canned food products.
Government data showed canned fruits and vegetables cost 5.7 percent more in March compared with the same month last year.
Essential part
Robert Ayars opened the first US cannery in 1812. More than two centuries later, metal cans remain an unremarkable but essential part of daily life.
On West 36th Street in Manhattan, directly opposite a luxury condominium building site, people line up in the sweltering afternoon heat for a food pantry to open.
Mikaela, manager of the food distribution service at the Metropolitan Community Church, is in charge of the pantry that provides free meat, produce and canned food to people in need. The church also serves hot meals.
"The canned goods are probably the most important thing we offer, because if we run out of everything else or don't get enough donations, the cans are always helpful," she told China Daily.
"We feed at least 40 to 50 people per day over a period of three days. Sometimes it's more."
She said most of the canned food comes from New York's government and food rescue organization City Harvest. The local government also provides funding, while public donations are welcomed.
"If people didn't get the food or the canned goods, they might not eat that day," Mikaela said. "So we make sure we have enough to give them, because the canned food is very important."
belindarobinson@chinadailyusa.com




























