O-I Glass outlined its position on tariffs last week.

The financial charges on goods imported to the USA imposed by President Trump have caused controversy around the globe.

Last week O-I's Chief Financial Officer John Haudrich discussed the potential impact of the tariffs on the world's largest container glassmaker.

He detailed how approximately 14% of O-I’s global sales volumes — both empty and filled bottles — cross US borders, and about 4.5% is exposed to new tariffs.

In a call with investors he said: “This primarily relates to imports of filled containers from Europe, while most cross-border sales between the USA, Mexico and Canada are exempt under the USMCA treaty.

“The bigger unknown is how elevated market uncertainty may impact the consumer and demand elasticity.”

An opportunity may arise from the local nature of glass sales.

Around 85% of the value chain exists within 300 miles of the plant, Haudrich (below) said.

“So, we do not rely on a global supply chain which is more exposed to tariffs,” he said.

“Likewise, domestic glass production is now more competitive compared to imports from China, given new tariffs.”

O-I’s US network stands to capitalise on any future shifts to domestic production, he said.

Aluminium-specific tariffs may improve cost parity for glass, Mr Haudrich said.

Glass containers in North America come at a 25% to 30% cost premium over aluminium alternatives.

“If that goes to 15% or lower, historically we’ve seen shifts over to glass, and we believe that the difference on the aluminium tariff side could impact that call it 5%, 10% points against that 25% to 30% premium. So it could help,” Haudrich said.

CEO Gordon Hardie added: “We're focused on getting our cost base into a position that we close the gap to cans and become more competitive to cans particularly in North America.

"Driving those elements that are within our control and that really is our primary focus.

"Tariffs for us isn't uncontrollable and while it may help us over a short, medium-term period, it's not something we wish to rely on as we as we get fit."