In response to President Trump’s announcement of sweeping baseline tariffs, the U.S. Department of Commerce released a document detailing separate 25% duties on imported aluminum cans and canned beer. These tariffs are set to take effect just after midnight on Friday. The newly announced duties cover these imports from any country, updating the list of items included in aluminum tariffs that were previously announced in February. The tariff codes indicate that the 25% rate applies to empty aluminum cans as well as to beer made from malt. Other previously listed items such as certain aluminum foils and sheets remain unchanged.
President Trump also announced a universal baseline tariff of 10% on nearly all imported goods from all countries, effective Saturday. Certain trading partners such as China, Japan, and the European Union are subject to higher rates set for April 9. The directive includes exemptions for goods like copper and lumber, while previously announced tariffs on steel, aluminum, cars, and automotive parts will remain unchanged.
The beer and can tariffs will impact packaging suppliers and the beer industry, which has already been experiencing sales dips due to changing consumer preferences towards hard seltzers, ready-to-drink cocktails, and alcohol-free beverages. The controversy surrounding Bud Light in 2023 also affected sales for packaging suppliers like Ardagh and Ball. While Constellation Brands’ Modelo rose to the top spot in beer sales following the Bud Light controversy, industry analysts anticipate that the new beer and can tariffs will negatively impact Constellation, which imports all of its beer from Mexico.
Tom Madrecki, Vice President of Supply Chain Resiliency at the Consumer Brands Association, highlighted the importance of certain imported ingredients and inputs for the consumer packaged goods industry. He emphasized that no amount of tariffs will bring these inputs back to the U.S., urging President Trump to fine-tune the trade policy to protect manufacturing jobs and prevent unnecessary inflation.
Industry associations like the Can Manufacturers Institute and the Aluminum Association have expressed concerns about the impact of tariffs on steel and aluminum on prices for canned foods and beverages. They call for targeted tariff relief to ensure that products packaged in steel and aluminum cans continue to be “Made in America.”
Aluminum Association CEO Charles Johnson emphasized the industry’s investments in the U.S. aluminum industry and the need for necessary aluminum access while addressing unfair trade practices. The industry supports actions against unfairly traded aluminum while maintaining a competitive tax environment and strong trade enforcement.
In conclusion, the newly announced tariffs on aluminum cans and canned beer, along with the broader tariffs on imported goods, will have significant implications for the packaging industry, the beer industry, and the consumer packaged goods sector. Fine-tuning trade policies to protect manufacturing jobs and prevent inflation is crucial to mitigating the impact of these tariffs on businesses and consumers alike.
