US Metal Can Packaging Costs Stay Under Pressure — Aluminum and Tinplate Barriers Persist Despite Tariff Overhaul

Cost pressure on the US can-manufacturing industry shows little sign of easing in the second half of 2026. Although the US government restructured how Section 232 tariffs on steel, aluminum, and copper are calculated back in April, fully metal products like beverage and food cans are still subject to the maximum 50% rate. Combined with a sharp rise in aluminum premiums, both can manufacturers and the food and beverage companies that rely on them are reporting mounting cost pressure.

Reference: Packaging Dive — High Midwest Premium, ongoing tariffs, Iran conflict hit aluminum

1. Aluminum Premium Tops $1/Pound for the First Time Ever

The Midwest Premium — the markup added to aluminum sold in the US — topped $1 per pound for the first time ever in late January 2026. Domestic US prices have risen more steeply than international benchmark prices, leading some observers to describe the tariff regime as effectively decoupling the US aluminum market from global pricing.

Middle East instability tied to Iran is cited as an added variable. As of 2025, the Middle East accounted for roughly 21% of US unwrought aluminum imports and about 13% of wrought aluminum imports, meaning any regional supply disruption could feed directly into cost.

Reference: Supply Chain Dive — Ongoing tariffs, Iran war weigh on aluminum prices

2. April's Tariff Overhaul — the Calculation Changed, But Cans Didn't

Effective April 6, 2026, the US shifted how Section 232 tariffs on steel, aluminum, and copper are calculated — from a method based on the value of metal content to one based on the full tariff value of the finished product. Rates were restructured as follows:

Reference: Korea Ministry of Trade, Industry and Energy — US restructures Section 232 tariffs on steel, aluminum, and copper (Korean)

Aluminum can lids were reclassified as derivative products, lowering their rate to 25%. But the fully metal can body itself remained in the 50% top bracket even after the overhaul. Can Manufacturers Institute President Scott Breen said the industry's request for rate adjustment was effectively denied across the board, stating:

"Instead, these tariff rate adjustments keep the status quo, solidifying a win for foreign canned goods."

Reference: Packaging Dive — Metal tariff adjustments aren't a win for packaging, trade groups say

The Brewers Association, representing US brewers, similarly voiced concern that aluminum sheet and containers remain subject to the 50% tariff.

3. Structural Import Dependency — Why the US Can't Simply Lower the Tariff

Behind can manufacturers' push for tariff relief lies a structural dependency on imported raw material. The US relies on imports for roughly 80% of its tinplate demand for can bodies — a dependency that has actually deepened since tariffs were first imposed in 2018. According to industry associations, 9 of the 12 US tinplate production lines active in 2018 have since gone idle, and the country currently lacks the domestic production capacity and technical capability to manufacture tinplate to the specifications can-making requires.

Reference: Can Central — Majority of Americans Point to Steel Tariffs for Skyrocketing Grocery Costs

The same survey found that roughly 25% of the approximately 1.7 billion canned goods the US imports annually come from China, while 87% of respondents expressed concern about rising grocery prices and 72% supported a tariff exemption for tinplate.

4. From Cost to Checkout — How the Tariff Passes Through

According to an analysis by the American Action Forum (AAF), if the 50% tariff holds, tariffs could account for up to 12% of can manufacturers' total costs — a marked jump from the 1–5% range seen under the 25% tariff in 2018 and the 1–6% range in 2019. Canned food prices rose 1.4% in 2018 and 5.2% in 2019 following the initial tariffs, and in 2025 rose a further 2.6% between April and May and 0.6% between May and June.

Reference: American Action Forum — Steel and Aluminum Tariffs: Impact on Canned Food

The cost pass-through also shows up in individual companies' results:

Reference: Packaging Digest — Trump Steel Tariffs Drive Price Hikes for Food & Beverage Packaging

Campbell's stated that tariffs account for roughly 4% of its fiscal 2026 cost of goods sold, with about 60% of that stemming from Section 232 steel and aluminum tariffs. The company said it plans to offset a significant portion of the tariff cost, but noted that a substantial share of the year-over-year decline in its FY2026 adjusted EPS guidance is attributable to the net impact of tariffs.

5. Implications for Korean Companies

• Korea benefits from reduced tariffs on certain steel and aluminum derivative products under its trade arrangement with the US, but this reduction is limited to specific derivatives such as agricultural and industrial machinery. Whether beverage and food aluminum/steel cans themselves qualify for this reduction has not been confirmed — companies handling these items should verify individual tariff classifications directly through US Customs and Border Protection (CBP) notices. (Whether Korea-specific rate adjustments apply to cans specifically requires separate confirmation.)
• Korean companies producing or distributing canned food and beverages in the US, or using metal cans in finished goods bound for the US market, should prepare for the likelihood that locally sourced can costs remain elevated — reviewing long-term supplier contract terms and alternative packaging materials in parallel is worth considering.
• Korean metal packaging and can manufacturers weighing US exports or local production should design their cost structures on the assumption that the 50% rate on fully metal products is likely to persist for the foreseeable future.

Summary

Even after the recalculation of Section 232 tariffs, the underlying cost pressure on the US metal can packaging market remains structurally unchanged. With a weak domestic tinplate production base and high tariffs persisting, costs continue to pass sequentially from can manufacturers to food and beverage companies to consumer prices. Korean companies supplying canned products to the US market, or sourcing can raw materials, should review their procurement strategy on the assumption that this structural cost pressure is unlikely to ease in the near term.