The U.S. steel and aluminum tariffs have increased packaging expenses for American food manufacturers so Pacific Coast Producers must consider different packaging solutions beyond traditional cans.
The company which provides canned goods to major retailers and institutions experienced a 6% increase in steel costs following President Trump’s decision to raise metal tariffs to 50% during this month. The trade measures directed at China have resulted in damage to domestic firms including Pacific Coast Producers.
The increased duties create challenges for Andy Russick to compete with Asian and European imports that have been selling canned goods at lower prices since 2017 according to his role as Vice President of Sales.
The increasing metal prices have led producers to investigate glass packaging and plastic containers and fiber-based alternatives. Alternative suppliers view this situation as a chance to grow their business because retailers need affordable solutions during inflationary times.
The steel and aluminum tariffs form part of Trump’s industrial policy to fight against Chinese industrial strategies. The critics maintain that these trade measures create difficulties for U.S. manufacturers who depend on specialized materials to maintain food safety and product shelf life.
The supply chain will experience packaging-related cost increases which may result in nationwide price changes at stores.
