U.S. President Donald Trump's plan to impose 25% tariffs on aluminum and steel imports, effective March 12, is causing concern and uncertainty in Canada's can manufacturing sector. The tariffs, coupled with the potential for retaliatory measures from Canada, are expected to increase costs for brewers and other producers who rely on metal cans. While some Canadian companies are seeing an opportunity to boost domestic production, the widespread impact on supply chains and affordability remains a major concern.
TORONTO — U.S. President Donald Trump's threat to impose sweeping metals tariffs is creating worry and opportunity in can manufacturing and packaging, an industry that relies heavily on the raw materials.
U.S. manufacturers of cans import metal from Canada — the metal makes up about 70 per cent of the price of a can. Tariffs would make those imports more costly for the U.S. firms, in turn increasing the cost of those cans when they are sold back to Canadian companies.'We're still in an affordability crisis.
The previous round of tariff threats did lead to some increased domestic production of cans, but given the costs involved and the integrated nature of the two countries' economies it was not easy to increase capacity, said Hélie. Anticipating more demand for his domestically-produced cans, Vachon is working to add another shift to increase capacity and offset a bit of the hit."So I need to have three shifts a week, and of course we're looking to increase the capacity of the factory."
The trade association has urged Trump to at least exempt tin mill steel from the tariffs, as, contrary to the intent of the tariffs, American producers ended up shutting down nine mill lines after Trump last imposed the import taxes on metal.
TARIFFS METAL CANADA MANUFACTURING CONSUMPTION
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