Tariffs Push U.S. Food Industry Toward Plastic Packaging Alternatives
June 26, 2025New U.S. tariffs on steel and aluminum are driving a packaging shift across the food and beverage industry, with companies increasingly eyeing plastic as a cost-saving alternative.
The 50% tariffs, enacted on June 4 under former President Donald Trump’s trade policies, have sharply raised costs for canned food producers like Pacific Coast Producers. Based in Lodi, California, the company now faces a 6% increase in the price of specialty steel used for cans — a hike expected to cost up to $40 million next year.
“We’re getting caught up in that brush fire,” said Andy Russick, VP of sales and marketing, whose company supplies private-label canned goods to major U.S. retailers and institutions. With steel and aluminum becoming more expensive, Russick says Pacific Coast is considering switching to foil pouches and aseptic cartons, such as those made by Tetra Pak and SIG Group.
Plastic is also gaining traction. Coca-Cola CEO James Quincey signaled earlier this year that rising aluminum costs could lead to greater reliance on plastic bottles. SIG Group CEO Samuel Sigrist echoed the trend, noting the tariffs have “fueled the conversation” about abandoning aluminum in beverage packaging altogether.
While glass and fiber-based alternatives are also in play, plastic’s low cost and logistical convenience make it a frontrunner — despite ongoing environmental concerns.
“If these tariffs persist, tighter margins will eventually force a response,” said eMarketer analyst Zak Stambor. For many companies, that response could mean more plastic on store shelves.
