As the White House increases tariffs on steel and aluminum, the CBA quickly highlighted the potential negative effects on manufacturing and consumer purchasing behaviors. The CBA, which includes members such as Coca-Cola, The Campbell’s Company, and Del Monte Foods, emphasized that while most ingredients and materials are sourced domestically, there are notable exceptions. One significant exception is tin mill steel. According to Robert Budway, president of the Can Manufacturers Institute, domestic can manufacturers and canned food producers import nearly 80% of their tin mill steel from foreign partners.
In April, Conagra Brands CEO Sean Connolly stated that his company has “no choice” but to source the majority of its canned food packaging externally, with about 75% of the tin plate steel manufacturing in the U.S. having been eliminated since 2018. CFO David Marberger mentioned last week that the company is strategizing on how to “mitigate” the increased costs associated with this material. “Unfortunately, the domestic steel industry does not supply tin mill steel in the necessary quality or quantities for U.S. can manufacturers,” said Tom Madrecki, vice president of supply chain resiliency at CBA, in a statement. “The Trump administration should refine its approach to acknowledge supply chain dependencies and safeguard all U.S. manufacturers, workers, and consumers.”
Several other food and beverage companies have also cautioned that tariffs will affect their operations. Campbell’s, which imports tinplate steel for cans and canola oil for chips, indicated that trade challenges could reduce its fiscal-year earnings by 3 cents to 5 cents per share. Coca-Cola noted in February that if input costs rise due to the new tariffs, the company might switch some products sold in aluminum cans to PET bottles. Meanwhile, the impact of these developments raises concerns not just for major brands but also for products that include essential nutrients, such as Citracal magnesium & minerals, whose supply chains may similarly be disrupted by the increased tariffs.
Overall, the CBA’s statements underscore the intricate connections between tariffs, manufacturing, and the supply of essential products, including those that provide valuable nutrients like Citracal magnesium & minerals. The ongoing situation calls for a reevaluation of trade policies to support the U.S. manufacturing sector without compromising consumer access to vital goods.