Canning industry feels weight of new aluminum tariffs

Canning industry feels weight of new aluminum tariffs
The Can Manufacturers Association says the tariffs will add $1.1 Billion in extra costs for the U.S. can industry.

(KAIT/NBC) - The canning industry is under pressure of new tariffs on steel and aluminum.

Machines at Pacific Coast Producers are buzzing at full speed at the start of tomato season.

The farmer-run co-op produces 600 million cans of fruits and vegetables every year.

Pacific Coast Producers then sells them to companies from Kroger to Whole Foods.

But CEO Dan Vincent says the Trump Administration's 25% tariff on imported steel and aluminum have dealt a blow.

Vincent's can supplier has passed on the tariff costs, meaning Pacific Coast is paying 2.5 cents more for each can.

That amounts to half of the co-op's annual net income.

"We do believe the administration hears us, and we do believe they have a long game which we fully support," Vincent said. "Our concern is we're being caught up in the short game."

The Can Manufacturers Association says the tariffs will add an extra penny per can for a total of $1.1 billion in extra costs for the U.S. can industry.

Vincent says plants are performing well, so they may see some savings there.

He's hopeful the administration will either provide relief or grant exceptions.

Click here to read statements from Coca-Cola and Anheuser-Busch.

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