The implementation of high tariffs on steel, a key move by President Trump to reduce imports and strengthen local production, is encountering significant challenges, particularly in the can manufacturing industry. Despite these tariffs, which were aimed at boosting domestic metal production under the auspices of national security, imports of steel used specifically for can production have seen a surge since the tariffs were enacted in 2025.
Scott Breen, president of the Can Manufacturers Institute, emphasizes the industry’s ongoing dependence on foreign tin plate supplies, stating that the domestic production of this crucial material has not increased. Currently, over 80 percent of tin plate consumed in the U.S. is imported. The Can Manufacturers Institute represents several major can producers who are grappling with rising costs—canned goods have seen a 5.7 percent price hike year-over-year, outpacing the general food inflation rate of 2 percent.
The tariffs, set at an unusually high rate of 50 percent, have created additional burdens for consumers reliant on canned goods, as they directly contribute to increased wholesale prices for these products. The economic strain on households is becoming increasingly evident as the cost of essential staples, such as fruits and vegetables in cans, rises.
U.S. Steel, the largest domestic producer of tin plate, recently announced plans to revive production at a facility in Gary, Indiana. This decision is viewed by some as a response to the tariff environment, potentially paving the way for greater domestic output. Meanwhile, the Department of Commerce claims that Trump-era steel policies are fostering an improved business landscape for tin plate manufacturers.
However, even with renewed domestic production efforts, experts maintain that American can makers are likely to rely heavily on imports, with projections indicating that over two-thirds of their tin plate will still come from foreign sources in the years to come.
Compounding the issue, Dave Luptak, CEO of Ohio Coatings, which produces coated tin plate, highlights the complexity imposed by tariffs. His company, which imports about 75 percent of its uncoated steel, is absorbing some of the tariff costs while raising prices marginally—a strategy that continues to impact their profit margins. Luptak has suggested that waiving these tariffs temporarily could assist domestic companies in ramping up production to alleviate import dependency.
Historically, American steel manufacturers produced more than 60 percent of the tin plate used domestically, but this share has dramatically decreased to less than 20 percent today. Various companies, including Cleveland-Cliffs, have exited the tin plate market in recent years due to unfulfilled profit expectations compared to other steel products.
U.S. Steel is also taking steps by filing complaints with the International Trade Commission regarding alleged dumping practices by foreign producers, which they argue are undermining American competitiveness through significantly lower pricing. Notably, imported tin plate from Turkey was reported to be as much as 75 percent cheaper than U.S. equivalents last year.
Adding to the intrigue, the landscape of canned goods is influenced not just by tariffs on materials but also by import regulations that exempt food-filled cans from these tariffs, putting American producers at a disadvantage. The Can Manufacturers Institute has urged that tariffs should apply to imported canned goods as well, but such changes have yet to be adopted.
Experts caution against introducing further tariffs on food items, suggesting that escalating production costs could lead to even less competitiveness for U.S. manufacturers in a global market. The situation remains complex, balancing the goals of protecting American industries against the need for affordability for consumers. The ongoing dynamics in the tin plate market paint a clear picture of the broader implications of trade policy, particularly as it relates to essential consumer goods.
