>> Dan Vincent feels like he's getting crushed.>> Well, ultimately, the customer, the consumer will see some of this impact.>> The head of Pacific Coast Producers, a California based farm cooperative that sells canned fruits and vegetables to supermarkets, food service providers, and restaurant chains, is seeing costs surge due to President Trump's sweeping steel and aluminum tariffs.
The Trump administration has tried to downplay the impact as minimal. But Reuters correspondent Nick Carey learned the tariffs will tack on at least $0.3 per can.>> $0.3 doesn't seem like an awful lot of money until you realize that Americans consume around about 24 billion cans of food a year.
Which means that $24 billion times $0.03, you got about $720 million in additional expenses. That either has to come out of the bottom line of companies like Pacific Coast Producers or it has to come out of the pocketbook of Americans.>> And squeezing that out of the notoriously cost-conscious supermarket food and restaurant industries or the typical canned food consumer who tends to be lower income and unwilling to pay more than $0.99 per can won't be easy.
That leaves canners like PCP in a bind as it looks to ship 700 million tin coded steel cans this year.>> The CEO of Pacific Coast Producers, the phrase that he used was we don't want to become an unintended consequence. They feel that the policy has just not been well thought through as to what the impact of imposing broad steel tariffs is going to be.
Pacific Coast Producers' foreign competitors can still import canned fruit and vegetables without tariffs because once they're in the can, it's a finished good. It's no longer qualified as steel.>> PCP could end up with 75% hit to company profits unless Vincent is able to do some quick thinking and find savings from somewhere.