SON · CIK 91767
What Sonoco Products Company told the SEC could break it.
Sonoco's disclosures concentrate on metal input costs and the tariffs that move them. Its metal packaging operations depend on aluminum and steel — it had hedged about 27% of its anticipated 2026 aluminum usage — leaving it exposed to metal price swings and availability. Layered on top is a fluid tariff regime: expanded Section 232 duties of 50% on most imported steel and aluminum raise its raw-material costs, and a 25% U.S. tariff on Canada and Mexico imports (partly mitigated by a USMCA exemption) plus Canadian retaliation raise the cost of materials and finished goods crossing North America.
3 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- 25% U.S. tariff on Canada/Mexico imports (USMCA exemption)medium
A 25% U.S. tariff on all Canada/Mexico imports (partly mitigated by a USMCA exemption) plus Canadian retaliatory tariffs raise costs of raw materials and finished goods moving across North America.
“On March 4, 2025, the U.S. government imposed a 25% tariff on all imports from Canada or Mexico. After imposing this tariff, the U.S. government allowed for the temporary exemption from the tariff for any goods that comply with the USMCA, which has helped mitigate the impact of the tariff on the Company's operations in North America.”
- Section 232 tariffs on steel & aluminum (50% duty)medium
Expanded Section 232 tariffs make imported steel and aluminum from most countries subject to a 50% duty, raising raw-material costs for Sonoco's metal and industrial paper packaging businesses.
“On February 10, 2025, the United States announced the expansion of Section 232 Tariffs on steel and aluminum imported into the United States, effective March 12, 2025, and the termination of the granting of new exclusions to mitigate these tariffs.”
Commodity & input dependence
- aluminum (and steel) for metal packagingmedium
Metal packaging operations depend on aluminum and steel; Sonoco hedges aluminum (27% of 2026 anticipated usage) and is exposed to metal price/availability and tariff-driven cost increases.
“At December 31, 2025, there were no natural gas swaps covering anticipated natural gas usage in 2026 and aluminum swaps covering 6,133 metric tons of aluminum represented approximately 27 % of anticipated aluminum usage for 2026.”
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