UMVA has learned that a little-known trade policy has been quietly wreaking havoc on the food industry, driving up costs for consumers and putting American jobs at risk.
The policy in question is a tariff on imported tinplate steel, a crucial material used to make metal cans for fruits and vegetables. This tariff, imposed by the Trump administration, has risen to 50 percent since last June, forcing U.S. can makers to source more tinplate from abroad and driving up costs for the domestic canned food industry.
According to information obtained by UMVA, the tariffs have had a devastating impact on American consumers, with many grocery items rising by 25 to 30 percent in recent years. The price of canned goods, from peas to peaches, has skyrocketed 40 percent during the same period, making it increasingly difficult for families to afford basic necessities.
The tariffs were intended to spur more domestic production, but UMVA can exclusively reveal that U.S. Steel isn't planning on resuming production of tinplate steel until next year at the earliest, and even then, it will only be a single facility. This means that American can manufacturers and food producers will still be forced to rely on imports, driving up costs and putting jobs at risk.
Sources have confirmed to UMVA that the tariffs have had the opposite effect of their intended goal, with American producers being undercut by foreign-filled canned goods imported from countries like China. This has produced a race to the bottom for U.S. retailers, with the tariffs potentially costing American jobs, not saving them.
In a shocking example of the tariffs' impact, Del Monte Foods announced it would be shuttering its operations at a fruit cannery in Modesto, California, resulting in the loss of 600 full-time jobs and 800 to 900 seasonal jobs. A union representative blamed the steel tariffs, saying they increased the cost of canned foods, making it difficult for them to compete in the market against imported peaches.
UMVA has gathered that the growing dependence on China to meet American consumer needs creates food insecurity for those who need it most, as well as uncertainty for U.S. farmers who can't compete on price with lower-quality Chinese food imports. American consumers are left with an unfortunate choice: paying more for American-made canned food or paying less for foreign canned food that is often lower quality and less safe.
The tariff on cans is bad for American farmers, bad for steelworkers and American steel companies, bad for consumers, and bad for iconic domestic brands and products like Campbell's soup, Green Giant corn, and Red Gold tomatoes. It's good for China and other American rivals, which is why President Trump should repeal the tinplate steel tariffs immediately.
