Since 2026, the global empty can industry has witnessed significant policy changes. Vietnam’s new Extended Producer Responsibility (EPR) regulation has taken effect, upgrading packaging recycling from a voluntary corporate practice to a legally binding obligation. Meanwhile, the 25% tariff imposed by the United States since 2025 on imported empty aluminum cans and canned beer continues to reverberate, deeply impacting the domestic brewing industry. Below is a comprehensive overview of the latest policy developments in both regions.
I. Vietnam: EPR Mandatory Recycling Regulation Officially in Force
1. Regulatory Overview
On May 25, 2026, Vietnam’s Decree No. 110/2026/ND-CP officially came into effect, detailing the extended producer responsibility for manufacturers and importers of listed products and packaging. The decree requires that, before being placed on the Vietnamese market, such products and packaging must be recycled in accordance with specified specifications and mandatory rates.
Affected enterprises have two compliance options: either to organize the collection and recycling of packaging themselves, or to contribute to an environmental fund to support recycling activities. Contributing to the fund is seen as a quick “responsibility transfer” option, whereas self-organized recycling requires long‑term investment, from packaging design and establishment of collection networks to cooperation with recyclers and full‑process monitoring.
2. Mandatory Recycling Rate Targets
The decree sets mandatory recycling rates for various packaging types. Aluminum packaging has the highest required rate at 22%, the same as rigid PET packaging. Corrugated cardboard packaging, as well as steel and other metal packaging, each have a 20% target. Rigid HDPE, LDPE, PP, and PS plastic packaging are set at 15%, and glass packaging also at 15%.
These rates will be reviewed and adjusted every three years, with each increase capped at 10 percentage points, with the first adjustment expected in 2029.
3. Industry Impact and Practical Challenges
Vietnam’s aluminum can market is substantial. Studies show that aluminum cans and PET bottles together account for approximately 98% of the country’s single‑use beverage container market, with aluminum cans representing about 65% and PET bottles around 33%. Currently, the collection rate for aluminum cans is estimated at 80%, while for PET bottles it is about 50%.
However, Vietnam currently lacks coordinated waste sorting and collection infrastructure. According to the Ministry of Agriculture and Environment, the country generates around 25.3 million tonnes of household solid waste annually, of which up to 60% is disposed of through landfilling. This underscores that EPR implementation is not only a compliance issue but also a test of corporate capability and foresight.
4. Corporate Response Case Study: Vinamilk’s Pioneering Experience
Vietnamese dairy giant Vinamilk is regarded as a typical case of proactive EPR planning. Since 2025, the company has collaborated with licensed entities to collect and recycle six categories of packaging materials, totalling over 12,800 tonnes, exceeding the mandatory rates set by the regulation. Entering 2026, Vinamilk has expanded its recycling scope to cover more than 13,200 tonnes of various packaging materials.
Notably, the company confirmed that self‑organised recycling can save up to one‑third of the costs compared to contributing to the dedicated fund. This practice demonstrates that proactive EPR planning not only meets compliance requirements but also transforms pressure into sustainable economic efficiency and competitive advantage.
In addition, studies suggest that Vietnam could further introduce a Deposit Return System (DRS) for single‑use PET bottles and aluminum cans, with a refundable deposit of VND 1,000–2,000 (approximately USD 0.03–0.06) per container. It is estimated that such a system could divert up to 77,000 tonnes of packaging waste from landfills each year, reduce carbon emissions by about 265,000 tonnes, and create additional employment opportunities in both formal and informal recycling sectors.
II. United States: 25% Tariff on Empty Aluminum Cans Continues to Pressure Domestic Industry
1. Tariff Policy Background
On February 10, 2025, the U.S. President signed a proclamation restoring a 25% tariff on imports of steel from all countries/economies and raising the tariff on imported aluminum to 25%. On April 4, 2025, the U.S. Department of Commerce further extended the tariff to cover beer and empty aluminum cans as derivative aluminum products, imposing a 25% ad valorem tariff on relevant imports from all countries/economies.
The measure is implemented under Section 232 of the Trade Expansion Act of 1962. The HTS code for empty aluminum cans is 7612.90.10.
2. 2026 Policy Adjustments
In 2026, the U.S. government made further adjustments to the aluminum tariff framework. On April 2, 2026, President Trump issued a new metals tariff proclamation that halved the rate to 25% for many steel, aluminum, and copper derivative products, while maintaining a 50% rate on imports of steel, aluminum, and copper commodities.
Specifically for the empty can industry, the updated policy clarifies that aluminum sheet (HTS 7606) and finished aluminum cans (7612) still face the 50% rate, while some derivative products such as aluminum caps (8309.90) have been reduced to 25%. Notably, beer (2203.00.00) is now exempt from Section 232 tariffs, meaning that the aluminum value in imported beer cans is no longer taxed. However, U.S. domestic brewers still face tariff‑related cost pressures on the aluminum cans they use.
The Brewers Association has pointed out that this places U.S. domestic brewers at an additional competitive disadvantage – the aluminum packaging value of imported beer is exempt from tariffs, while domestic brewers’ cans still bear the tariff cost.
3. Impact on Domestic Industry
The tariff has had an immediate impact on the domestic brewing industry. The owner of Stubborn Brothers Brewery in Shawano, Wisconsin, stated that aluminum can prices have risen from 9 cents to 24 cents per can – nearly tripling. The CEO of Wisconsin Aluminum Foundry remarked, “There is no question that the reason for the increase in price is the price of metal and aluminum, the tariffs on imported aluminum, and then energy costs – but at the end of the day, it is the tariffs.”
Data from the Brewers Association shows that nearly 80% of the beer produced by small independent brewers is sold in aluminum cans. Since the U.S. still relies on imported aluminum to meet its demand for can sheet and end stock, tariff fluctuations continue to drive up costs for brewers and consumers.
The tariff has also slowed the industry trend of “bottles‑to‑cans” shifting in the U.S. craft beer sector. Some brewers have begun reducing or cancelling their supply of canned beer to cut costs.
4. Industry Responses and Calls for Action
The Brewers Association continues to engage with the government and Congress, highlighting the impact of tariffs on craft brewers and proposing policy adjustments. In its comments submitted to the Office of the U.S. Trade Representative, the Association stressed that maintaining stability in North American trade is vital – Canada is a key supplier of barley and malt for U.S. brewers, with independent domestic brewers sourcing about 40% of their barley malt from Canada. The Association also called for extending duty‑free treatment for Canadian‑origin aluminum to the aluminum sector.
Despite cost pressures, some brewers have chosen not to pass the costs on to consumers. Stubborn Brothers Brewery stated that it does not plan to raise beer prices, instead controlling costs through measures such as recycling plastic beer caps.
III. Conclusion
In 2026, the global empty can industry is undergoing profound policy‑driven transformation. Vietnam, through its EPR mandatory recycling regulation, is pushing beverage packaging from a linear economy toward a circular economy, turning recycling responsibilities from voluntary encouragement into legal obligations and setting clear recycling rate targets for aluminum cans and other packaging materials. The United States, through Section 232 tariffs, continues to pressure imports of empty aluminum cans; although rates for some derivative products were adjusted in 2026, the domestic brewing industry still faces high packaging cost pressures, and the industry landscape is being reshaped.
Although the two policies follow different paths – Vietnam emphasising strengthened producer end‑of‑life responsibility, while the U.S. leans toward trade‑protectionist tariff barriers – both are profoundly affecting the direction of the global empty can supply chain. For multinational beverage brands and empty can manufacturers, finding a balance between compliance and cost will be a critical competitive challenge in the years ahead.
Post time: Aug-18-2026