President Donald Trump’s steel tariffs are increasing costs for American tin can manufacturers, even as the United States continues to rely heavily on imported tin-plated steel. The situation is also contributing to higher prices for canned fruits and vegetables across the country.
According to reporting from The New York Times, imports of tin plate surged in 2025 despite tariffs intended to strengthen domestic steel production. Industry groups say U.S. manufacturers still lack enough domestic supply to meet demand.
The issue highlights a broader challenge within the American steel industry. While tariffs were designed to encourage local production, companies that manufacture food cans remain dependent on foreign steel products. At the same time, consumers are facing higher grocery costs tied to packaging expenses.
Canned food producers and steel companies are now navigating a market shaped by import taxes, supply shortages, and growing competition from imported food products packaged overseas.
Domestic Production Remains Limited Despite Tariffs
Tin plate, the thin steel coated with tin and used in food cans, has become a focal point in the debate over Trump’s steel policy. The tariffs, imposed under Section 232 of the Trade Expansion Act on national security grounds, currently stand at 50 percent.
According to Harbor Intelligence, more than 80 percent of the tin plate used in the United States last year was imported. Domestic production has steadily declined over the past decade as steel companies moved away from tin-plate manufacturing because of lower profit margins compared with other steel products.
Scott Breen, president of the Can Manufacturers Institute, told The New York Times that U.S. can makers still have little choice but to import large quantities of tin plate. “There’s not any more being produced here than there was before,” he said.
U.S. Steel recently announced plans to restart production at a facility in Gary, Indiana, beginning next year. The Commerce Department said the move reflects an improved business environment created by Trump’s trade policies. Still, analysts and steel executives told the newspaper that imports are expected to account for more than two-thirds of American tin plate consumption for years to come.
Ohio Coatings, a company based in Yorkville, Ohio, illustrates the pressure facing domestic manufacturers. The firm coats imported blackplate steel with tin to produce packaging material for can makers. According to the company’s chief executive, Dave Luptak, roughly three-fourths of its blackplate is imported and subject to tariffs.
Luptak said suppliers lowered some prices to offset tariff costs, though Ohio Coatings still raised customer prices by a “single-digit” percentage last year and absorbed part of the financial burden internally.
Higher Packaging Costs Push Canned Food Prices Upward
The increase in steel costs is now filtering into grocery prices. A can represents roughly one-third of the wholesale cost of canned fruits or vegetables, according to The New York Times.
Government data cited in the report showed canned fruits and vegetables were 5.7 percent more expensive in March than a year earlier. By comparison, overall food-at-home prices rose 2 percent during the same period.
Industry representatives also warned that imported canned foods are becoming more competitive because filled food cans entering the United States are exempt from steel tariffs. The Can Manufacturers Institute argued that this loophole disadvantages domestic producers and called for tariffs to apply to imported food-filled cans as well.
Scott Lincicome of the Cato Institute criticized that proposal, saying additional tariffs on imported food products would worsen affordability concerns for consumers. He told The New York Times that higher production costs in the United States inevitably reduce the competitiveness of domestic canned goods.
Meanwhile, trade disputes continue within the steel sector itself. U.S. Steel recently filed a petition alleging dumped tin-plate imports from China, Taiwan, and Turkey, arguing that foreign products were undercutting domestic prices.
Enjoyed this article? Subscribe to our free Newsletter for engaging stories, exclusive content, and the latest news.
