Industry News & Insights

25 Jun 2025

When politics meets packaging: metal tariffs shake up global costs

When politics meets packaging: metal tariffs shake up global costs

The doubling of US steel and aluminium import duties to 50% under President Trump is significantly increasing costs for metal packaging across food and beverage industries.

Reuters reports that cans are now more expensive, prompting companies to consider switching materials amid uncertainty over tariffs.

Metal tariffs raise packaging costs


US firm Pacific Coast Producers, which supplies canned fruit and tomatoes, says the cost of specialty steel has risen by about 6%, leading to an estimated $40 million extra expense next year.

With tariffs rising from 25% to 50% on 4 June 2025, can prices may increase by as much as 24% by next spring.

Retailers and consumers could face food price increases in the range of 9–15% on canned goods, according to industry estimates.

Exploring alternative packaging materials
 

Faced with higher can costs, some producers are reviewing options like aseptic cartons (such as Tetra Pak), foil pouches, glass bottles or plastic. However, alternatives bring challenges: glass is heavier to ship, pouches require new production lines and materials like plastic carry different logistical limitations.

Major brands—such as Coca‑Cola and PepsiCo—are able to shift more easily thanks to diverse packaging strategies.

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