The global aluminum can industry faces a dynamic regulatory landscape in 2025, with tariffs, sustainability mandates, and trade policies reshaping supply chains and production costs. As aluminum is a critical input for beverage packaging—accounting for 30% of global aluminum demand in consumer goods—these changes impact manufacturers, brands, and consumers alike. Below is a breakdown of the most impactful tariffs and regulations, drawing on updates from the World Trade Organization (WTO), EU Commission, and U.S. Department of Commerce.

A key regulatory shift is the EU’s CBAM (Carbon Border Adjustment Mechanism) Phase 2, which expands coverage to aluminum (including aluminum cans) in 2025. Under CBAM, importers of aluminum-based products must pay a carbon fee based on the emissions generated during production. For aluminum cans, this translates to a cost of €80–€120 per ton of aluminum, depending on the origin: cans made from primary aluminum (high-emission) will face higher fees than those using recycled aluminum (low-emission). This policy aims to level the playing field for EU-based manufacturers, which already adhere to strict carbon reduction targets (e.g., the EU’s 2030 Climate Law). For non-EU exporters (e.g., China, India), CBAM incentivizes investment in recycled content to avoid higher costs—many are now increasing recycled aluminum use in cans from 30% to 50% to qualify for lower fees.

In the U.S., the Section 232 tariffs on aluminum imports remain in place but with targeted adjustments in 2025. Initially imposed in 2018 to protect domestic aluminum production, the tariffs (10% on most imports) now include exemptions for countries with robust recycling programs: Canada, Mexico, and Japan have secured permanent exemptions, while the EU and UK have temporary exemptions (renewed quarterly). Notably, the U.S. has introduced a “Recycled Aluminum Credit” for can manufacturers: those using 70%+ recycled aluminum in cans receive a 2% tariff reduction, encouraging adoption of secondary aluminum. This credit aligns with the U.S. EPA’s goal to boost aluminum can recycling rates from 68% to 80% by 2030. However, the tariffs continue to strain U.S.-China trade: Chinese aluminum can exporters face the full 10% tariff, leading some U.S. beverage brands (e.g., PepsiCo) to shift sourcing to domestic or exempted suppliers.

Asia’s regulatory focus in 2025 is on export controls and recycled content mandates. China, the world’s largest aluminum producer, has tightened restrictions on primary aluminum exports to prioritize domestic supply (critical for its EV and renewable energy sectors). For aluminum cans, this means Chinese exporters must secure government quotas, which are limited to 50% of 2024 levels. To offset this, China has mandated that all domestic can manufacturers use at least 40% recycled aluminum by 2025 (up from 25% in 2024), driving demand for scrap aluminum. In India, the government has introduced a “Green Packaging Tax” on non-recyclable beverage packaging: aluminum cans are exempt, but plastic and glass bottles face a 5% tax—this has boosted aluminum can adoption by 15% among Indian beverage brands (e.g., Coca-Cola India).

Global ESG compliance requirements are also shaping the industry in 2025. The Task Force on Climate-Related Financial Disclosures (TCFD) now requires all public beverage and packaging companies to disclose the carbon footprint of their can supply chains. For example, Nestlé and Unilever must publish data on aluminum sourcing (primary vs. recycled), emissions from production, and recycling rates for their cans. This transparency pushes manufacturers to partner with certified suppliers (e.g., those with ASI Aluminum Stewardship Initiative certification) to meet investor and consumer demands. Additionally, the UN Global Compact’s “Packaging for a Circular Economy” initiative has 200+ signatories in 2025, all committed to making aluminum cans 100% recyclable and using 50%+ recycled content by 2027.

These tariffs and regulations create both challenges and opportunities: while they increase costs for some players, they accelerate the shift to a more sustainable, circular aluminum can industry. Manufacturers that invest in recycled content, carbon reduction, and ESG transparency will be best positioned to navigate 2025’s regulatory landscape.