Chinese aluminum cans gain advantage amid U.S. tariffs

By the Editorial Team · Monday, September 21, 2026

Aluminum can manufacturers near Shanghai are selling products at prices about one-third lower than in the U.S., driven by tariffs that have raised costs for North American producers. This price gap is prompting Canadian beverage companies to increasingly source cans from China despite supply risks, reshaping market dynamics amid ongoing trade tensions and potential policy changes.

Factories producing aluminum cans near Shanghai are offering their products at prices roughly one-third lower than those in the United States, a trend driven in part by U.S. tariffs that have increased costs across North America. While Canada remains a significant aluminum producer, the United States leads in producing aluminum coil used to manufacture cans. Pricing for can contracts on both sides of the U.S.-Canada border typically hinges on U.S. Midwest aluminum prices, which have been elevated by the tariffs.

The United States imposed a 50% tariff on Canadian aluminum, prompting Canada to retaliate with similar duties, though it has exempted goods used in food and beverage packaging. This trade dynamic has created a distinct competitive advantage for Chinese aluminum can manufacturers.

Shane Vear, owner of Caravan Bev Co., a Southern Ontario-based importer and distributor of Chinese cans, reported a 30% increase in business over the past year. He noted that many companies initially sourced cans from the U.S. until prices surged due to tariffs.

For certain can sizes, prices from Chinese suppliers now approximate what American-made cans cost before the introduction of tariffs following President Donald Trump’s 2017 inauguration. This cost differential, up to approximately eight cents a can, presents a substantial challenge for Canadian beverage producers who collectively fill about 3.7 billion cans annually. Yuri Akeroyd, president of The Strait & Narrow, a Vancouver Island maker of canned gin and vodka cocktails, said a five-cent difference per can can determine a company’s profitability.

Since last year, The Strait & Narrow has shifted the majority of its can purchases to China, citing not only cost but also the volatility and uncertainty of U.S. trade policy. After nearly two years of fluctuating tariffs and trade tensions, Akeroyd expressed a preference for the relative stability he has found in overseas supply despite potential risks.

Smaller beverage companies like The Strait & Narrow have been more agile in adapting to these shifts, while larger producers are often bound by multiyear contracts, which has tempered rapid changes in the market. Canadian trade data for 2025 showed a 14% increase in the value of Chinese aluminum can imports and an 11% rise in imports from the U.S., which still dominates the market. These figures do not, however, yet fully capture shifts seen in 2026 or the portion of increased U.S. import values attributable to tariffs.

Crown Holdings, a major U.S. aluminum can manufacturer with facilities in Calgary, Toronto, and multiple U.S. locations, reported higher net sales in 2025 largely due to passing through increased aluminum costs. The company did not provide comment. Local loyalty remains a factor for some customers, as evidenced by Big Rock Brewery in Calgary, which values proximity to Crown’s plant but has faced rising costs. Aluminum tariffs have cost Big Rock more than $1 million this year, contributing to a workforce reduction of 10%.

Despite a multiyear contract with North American suppliers, Big Rock is exploring alternative sources as tariff-related costs mount. President David Kinder emphasized the need to prioritize business viability over preferences for local sourcing.

Some brewers question whether Chinese cans are genuinely more economical once shipping complexities are included. Ocean freight rates have become highly volatile, partly due to geopolitical tensions such as the conflict in Iran. Jim Lister, president of Victoria-based Phillips Brewing and Malting Co., characterized sourcing from Asia as challenging due to shipping unpredictability and prefers North American sources. Phillips holds contracts for North American cans through early 2027 but is evaluating alternatives while hoping for resolution, possibly via a new Canada-U.S. trade agreement or changes following the upcoming U.S. midterm elections.

Lister warned that without adjustments, rising input costs could force beverage producers to increase product prices, underscoring the broader economic pressures stemming from tariffs and international trade disruptions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.