Proposed tariffs threaten to cause supply chain issues and raise prices for processors who make canned meat and seafood products. Tom Madrecki, vice president of the Consumer Brands Association, shares his insights on these proposed tariffs. He also recently provided testimony on this issue at the International Trade Commission.

While a preliminary decision is yet to be made by the International Trade Commission and U.S. Department of Commerce, Madrecki said that while the tariffs would raise costs for processors.

“If passed, the proposed tariffs would sharply increase the cost of packaging for canned meat and seafood processors,” Madrecki said.

He said that the proposed tariffs, if passed, would disrupt the supply chain of tin mill imports.

“The tariffs would apply to U.S. tin mill imports from eight countries: Canada, China, Germany, the Netherlands, South Korea, Taiwan, Turkey and the United Kingdom,” Madrecki said.

He noted that the implementation of these tariffs would directly negatively impact U.S. steel manufacturers, who currently are only able to meet half of the country’s demand for tin mill for can manufacturers – the rest of the tin mill comes from imports.

Madrecki also noted that these tariffs would lead to canned meat and seafood processors having to increase their price points.

“Those cost increases would make domestic can making less competitive with foreign imports, hurting sales and even shuttering long-standing U.S. businesses as the tariffs take full effect,” he said.

Madrecki cited a study by the Trade Partnership, which discovered that the tariffs would greatly hurt employees.

“Meat and seafood processors -- along with thousands of other businesses specializing in canned products -- would have no choice but to cut back on the number of people they employ or reduce wages,” he said.