Food Companies Urge Tariff Exemption of Steel to Make Food Cans

Steel imports used for canned foods should be exempt from any duties that the Trump administration may put on steel imports via a Section 232 investigation, several food companies told President Donald Trump in a letter."Since tinplate steel makes up approximately 60% of the cost of a can, a tariff as low as 5% would result in increased can costs of approximately $1 billion/year," a coalition of major food companies and can makers said in a letter. "Given the industry's thin margins, manufacturers cannot absorb this cost and will be forced to pass it on to consumers." The companies, including Conagra, Del Monte and other canned food manufacturers, warned that it will costs consumers more if the tariffs were imposed.The Commerce Department has not yet given Trump two reports on the investigation — one on steel and one on aluminum — even though two weeks ago they indicated the reports were in the final stages of review at that point.