The Can Manufacturers Institute (CMI) is extremely disappointed that President Trump didn’t excludes aluminum can sheets, aluminum ingot and tinplate steel from tariffs.
Aluminum and steel play a vital role in nourishing American families and in employing tens of thousands of workers across the country. Tariff restrictions will have severe economic impact on the can manufacturing industry and its employees. This recommendation could have a ripple affect across the supply chain.
Like most industries, can makers depend on predictability in supply and price. If the aluminum supply is hindered by unnecessary tariffs, it could lead to supply inefficacies and affect product availability. Meanwhile, over the past five years, aluminum can manufacturers invested well over $1 billion in U.S. manufacturing facilities. Even a small tariff will result in greater uncertainty about prices, supply, financing and would dramatically curtail investment and hiring in the United States.
U.S. tinplate steel production does not meet domestic demand. In 2016, U.S. can industry demand was 2.1 million tons, while domestic tinplate production was 1.2 million tons; only 58 percent of domestic demand can be met by U.S. tinplate producers.
The can manufacturing industry provides high paying jobs across the country in plants that produce durable metal containers for nutritious, affordable, accessible foods and beverages. A tariff on these aluminum and steel products will harm our industry and put food and beverage cans at a disadvantage among competitive packages, such as plastic and glass, which are not subject to tariffs. This would ultimately harm U.S. consumers, who would pay more for canned food and beverage products.
Even a small increase in the price of raw materials would create a destructive competitive disadvantage, forcing possible closures of can manufacturing plants in the United States and negatively impacting the 10,000 workers and their families in these U.S.-based plants. One could easily foresee where finished cans or even cans with food products made overseas could be imported at lower costs than U.S. produced cans.
We are extremely disappointed that the President did not to side with American consumers and workers. CMI plans to file a petition with the Commerce Department asking for administrative relief from tariffs on imports of aluminum can sheets, aluminum ingots and steel tinplate.
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