13 May 2026 – Steel tariffs also have an impact in areas that are highly political: food prices. One frequently overlooked fact is that many packaging materials are made of steel and can account for a significant share of the production costs of a food product. On the LME, copper prices today jumped above the mark of USD 14,000 per tonne.
LME: Copper Rises Above USD 14,000
After the LME copper price on Tuesday was only just below the USD 14,000 mark, it had already crossed that threshold in early trading today. Nickel prices also recently moved into positive territory at more than USD 19,000 per tonne. Aluminum has so far shown a stable sideways movement.
Steel Tariffs Drive Food Prices Higher
The higher U.S. Section 232 tariffs on steel and aluminum have now been in force for more than a year. This is also hitting companies in the food industry hard that depend on imports of so-called tinplate for the production of cans. Tinplate has not been produced in sufficient quantities in the United States for years, because it is more attractive for domestic steel producers to manufacture products that generate higher margins.
The cost of a tinplate can accounts for roughly one third of the finished food product – 50% tariffs therefore feed directly into production costs and, because margins for food products are already calculated very tightly, must be passed directly on to consumers. U.S. media are currently reporting on this.
Tariffs Harm the Competitiveness of Downstream Companies
This is an effect of tariffs that applies not only in the United States, but also in the European Union. Tariffs have a direct impact on the competitiveness of downstream companies and on consumers’ wallets. This specific example impressively shows that the European Union is trying to push through a silent yet massive tax increase on consumers.
European Parliament: Significant Additional Burden from CBAM and Steel Tariffs
The significant additional burdens on the metal-processing downstream industry caused by CBAM and tariffs are increasingly being noticed by parts of the European Parliament as well. In several written questions over recent weeks and months, attention has been drawn to this serious and one-sided distortion of competition, with major concern expressed that this would place an excessive burden precisely on small and medium-sized enterprises.
The Italian association Assofermet had also recently pointed out, in relation to the planned EU steel tariffs, that domestic steel producers could enforce their high prices only because of trade barriers. However, this would not generate any demand.
Overall, the current situation shows that the European Union does not need any further market protection. Instead, urgent measures must be taken to dismantle an artificially inflated price level. Otherwise, competitiveness and incomes in the EU will only come under even greater pressure – and this even in the politically sensitive area of basic food supply.
Given the current circumstances, we would like to add: this is something that members of governing parties in major EU member states, such as Germany, should finally start to understand.
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