The Consumer Brands Association unveiled two studies it conducted in conjunction with Trade Partnership Worldwide, LLC and The Juday Group to show the risks of implementing tariffs of up to 300% on tinplate steel imports. These could generate a huge labor loss of close to 40,000 union and non-union workers and make canned goods on the market up to 30% more expensive.
Consumer Brands is fighting to prevent the Department of Commerce and the International Trade Commission from authorizing Cleveland-Cliffs to charge up to 300 percent more for imported products such as tinplate steel. These measures will have immediate effects on computable costs, i.e., consumer prices would be affected if these mandatory tariffs are implemented. The research suggests that tinplate steel exists in many packaged products, from soup to shaving cream, and for this reason, imposing the requested tariffs would increase production costs for U.S. can makers and trigger price increases for all consumers, as supported by the research.
According to David Chavern, a senior manager at Consumer Brands, Cleveland-Cliffs has been taking advantage of trade laws to increase its profits at the expense of those who purchase significant quantities of food products.
The tax agencies, the Department of Commerce and the ITC, must fulfill their responsibility by reviewing in detail the facts of the above case and analyzing the two economic impact studies. This decision must be neutral and not benefit a single company to the detriment of an industrial sector that is as important for the country as it is for consumers. In addition, studies conducted by The Juday Group showed that the price increase for canned food and canned goods will mean an increase in cost of up to 58 cents per product.
A recent study by Trade Partnership Worldwide LLC also produced an alarming result: the use of tariffs would jeopardize a large number of jobs, in excess of half a thousand, which would be related to manufacturing in the United States. Furthermore, such a measure would make the United States even more dependent on other countries such as Mexico and China for its canned and food products, as we have seen this year with the 19% increase in imports from China.
Robert Budway, who is president of the Can Manufacturers Institute, remarked that such a tax will affect Americans directly.
“If this can tax is imposed, it will not only hurt our industry, but it will also hurt consumers, especially those who rely on affordable and accessible canned foods.”
he remarked.
“What is intended to be a tool to protect U.S. manufacturers will have exactly the opposite impact because can makers need access to certain steels that are not even made in the United States.”
he remarked.
what standards apply to tinplate containers?
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