Trump’s steel tariffs disrupt operations at US metal can factory

BusinessWORLD
Trump’s steel tariffs disrupt operations at US metal can factory

In Belcamp, Maryland, a U.S. metal can manufacturer is struggling as steep steel tariffs imposed by President Donald Trump impact production, forcing the company to reconsider its pricing and future operations.

Independent Can Company, a nearly century-old business northeast of Baltimore, feels the strain of President Donald Trump’s steep tariffs on imported steel and aluminum. Since his return to the presidency in January, Trump has reimposed a 25 percent tariff on these metals and later doubled it to 50 percent.

Huether, now 73, says he is determined to keep his manufacturing company afloat for generations to come, but Trump’s tariffs are complicating this task.

“We’re living in chaos right now,” said CEO Rick Huether, who began working at the family-run company at the age of 14 years.

With the steady beat of factory presses, steel plates coated with tin to prevent corrosion are transformed into containers for cookies, coffee, milk powder, and dried fruits. Yet, Huether points out a major problem: there simply isn’t enough American-made tinplate to support U.S. manufacturing needs.

“In the United States, we can only make about 25 percent of the tinplate that’s required to do what we do,” he explained. “Those all require us to buy in the neighborhood 70 percent of our steel outside of the United States.”

While he supports strengthening U.S. manufacturing, Huether worries about the unpredictable nature of Trump’s trade policies. “Globalization has gone almost a little bit too far,” he said.

The uncertainty has created a difficult environment for long-term planning. Huether said the company had to close one of its plants in Iowa during Trump’s first term due to earlier steel tariffs.

With nearly 400 employees spread across four sites, the company is doing its best to avoid layoffs despite the ongoing pressure.

Others in the industry are becoming more inclined to “buy American,” especially following the lessons of the COVID-19 pandemic. During that period, Independent Can’s business surged by 50 percent as foreign supply chains collapsed and domestic producers stepped in to fill the void.

“During the pandemic, we took everybody in. As China shut down and the ports were locked up, our business went up 50 percent,” Huether stated. “Today if people want to come to us, we’ll take them in,” he said, but added, “We need to have a two-year contract.”

Huether remains cautiously optimistic. With roots dating back to the Great Depression, he believes the company can survive this current challenge. “I think that our business will survive,” he said. “It’s trying to figure out what you’re going to sell in the next six months.”

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