Trump’s Steel Tariffs Strain U.S. Factory as Costs Climb and Orders Drop
In the heat of summer, Independent Can Company in Belcamp, Maryland is busy producing holiday-themed metal containers — complete with snowmen and sleighs. But inside the factory, frustration is rising just as quickly as the temperature, as the business contends with a new wave of Trump-imposed tariffs on steel.
CEO Rick Huether, who began working at his family’s company at age 14 and now leads it at 73, is determined to see the business thrive for future generations. But he says Trump’s steep tariffs on imported steel and aluminum — first set at 25% and recently doubled to 50% — have made that mission increasingly difficult.
“We’re living in chaos right now,” Huether told AFP.
Tin Shortage, Rising Costs, and Shrinking Orders
Independent Can produces a wide range of metal tins used for cookies, coffee, dried fruit, and milk powder. These tins are made from tinplate — steel sheets coated with tin to prevent corrosion.
But there’s a major issue: only about 25% of the necessary tinplate is produced in the U.S., Huether says. That means up to 70% must be sourced internationally, which is now far more expensive due to the tariffs.
“We want to strengthen U.S. manufacturing,” Huether said. “But there’s not enough domestic supply, and these tariffs are hurting businesses like ours.”
While he supports reducing U.S. reliance on foreign supply chains, Huether is concerned about Trump’s unpredictable tariff strategies, including imposing duties on products that aren’t even produced domestically.
Price Hikes and the Risk of Losing Customers
Despite the challenges, Independent Can — which employs nearly 400 people across four locations — is not planning layoffs. However, one of its Iowa plants shut down last year, partly due to earlier steel tariffs under Trump’s first term.
Now, with a 50% tariff in place, Huether says a price increase of more than 20% is likely. Some customers have already cut orders by 20–25%, citing economic uncertainty and weak consumer demand.
While some buyers are now more inclined to “buy American,” Huether warns that such sentiment may be fleeting. During the COVID-19 pandemic, when Chinese supply chains were disrupted, business at Independent Can surged by 50% — but when the crisis passed, many customers returned to cheaper overseas suppliers.
“We’ll welcome any new business,” he said. “But this time, we’re asking for two-year contracts to ensure stability.”
Uncertain Outlook, But Holding on to Hope
Founded during the Great Depression, Independent Can is approaching its 100th year. Despite current volatility, Huether remains cautiously optimistic about the company’s resilience.
“I think our business will survive,” he said. “But it’s hard to predict what we’ll even be selling in the next six months.”
