U.S. tariffs on imported steel and aluminum have doubled to 50%, significantly affecting companies like Pacific Coast Producers, which relies on these metals for food packaging. The increase in costs is expected to lead to a $40 million rise in expenses next year, prompting companies to explore alternative packaging solutions such as aseptic cartons and plastic. This shift could alter the competitive landscape as companies adapt to higher costs and changing consumer preferences.

Major players in the beverage and food industries, including Coca-Cola and Campbell Soup, are reassessing their packaging strategies in response to the tariffs. While Coca-Cola may pivot towards more plastic packaging, Campbell Soup is working to mitigate cost increases while maintaining its reliance on steel cans. The tariffs are creating a ripple effect across the industry, with potential long-term implications for packaging materials and market dynamics.