President Trump Intends to Levy Tariffs that May Impact CPG Companies
Late last week, the President announced his intention to impose tariffs on steel and aluminum imports to protect U.S. domestic industries. Congressional Republicans have voiced concerns with the proposal, fearing that it will result in retaliatory measures from impacted countries and a protracted trade war. Industry groups have pushed back, citing the impact tariffs could have on the costs of Consumer Packaged Goods (CPG) that include the affected metals. They argue that many products and kinds of packaging will become more expensive, resulting in a wide variety of price hikes to a wide variety of goods, ranging from soup cans to beer to cars to iPhones, and cost American jobs. There is also concern about the impact of retaliatory tariffs on US goods and commodities, including items on this draft list released by the EU.