Briefing-president-US

Can Makers Miss Out on Trade War Benefits

Sept. 11, 2019
An expected surge in domestic demand for food cans due to trade wars has failed to materialize.

Food can manufacturers are suffering setbacks after a surge in domestic demand for their product due to the Trump administration’s trade wars failed to materialize, the Wall Street Journal reports.

Suppliers of cans, and the tinplate used to make them, anticipated a windfall after the government slapped a 25% duty on aluminum and steel imports in March 2018. The suppliers raised their prices to match the new, higher import price, and the two major producers of tinplate, U.S. Steel and ArcelorMittal, invested in improvements in their production lines.

But a lower-than-expected vegetable crop is depressing demand for cans, and in May, the Trump administration exempted Canada and Mexico from the 25% tariff. Can makers, who now have a more assured source of tinplate from abroad, are therefore expected to pressure the tinplate producers to lower prices in the next round of contract talks, the Journal reports.

Sponsored Recommendations

Troubleshoot: Grittiness in gluten free cookies

Learn how to adjust gluten free cookie recipes for a softer texture.

Clabber Girl: Rising Success

Uncover how Clabber Girl Corporation achieved a remarkable 7% growth and improved manufacturing efficiency by seamlessly integrating Vicinity's batch manufacturing solution with...

Intelligent Blends: Taking Technology to the Next Level

Find out how our friends at Intelligent Blends use VicinityFood and Microsoft Dynamics GP to produce the best coffee around.

Key ingredient: Mother Murphy's Laboratories

Flavorings manufacturer Mother Murphy’s Laboratories integrates front office with production facility — improving operations from initial order to final invoice.