Three American goods that could rise in price due to metal tariffs

Recently, President Donald Trump announced new tariffs that could lead to higher prices for several American products. The tariffs impose a 25% tax on all imports of steel and aluminum into the United States. This decision ends previous exemptions for major trade partners such as Canada, Mexico, Brazil, and the European Union. As a result, many U. S. businesses that rely on these metals for their products will face increased costs. This situation raises concerns about how these added expenses might be passed on to consumers. Steel and aluminum are essential materials used in a wide range of goods, so it is important to consider which items might become more expensive as a result of these tariffs. One significant category that could see price increases is canned food and beverages. According to the Can Manufacturers Institute, approximately 70% of the steel used in the production of cans in the U. S. is imported from countries like Germany, the Netherlands, and Canada. When Trump first imposed tariffs on steel in 2018, many can manufacturers received exemptions from these import taxes, allowing them to continue producing cans without facing higher costs. However, the situation has changed, and steel manufacturers have reduced their production, leading to increased prices. Robert Budway, the president of the Can Manufacturers Institute, expressed concerns that without exemptions for can manufacturers, grocery prices for canned foods made in the U. S. are likely to rise. He emphasized that while the tariffs may be intended to protect the steel industry, they could undermine food security and the supply of canned goods that Americans rely on daily. Additionally, companies that produce beverages, such as Coca-Cola, have also warned that the tariffs on aluminum will lead to increased costs, which could ultimately result in higher prices for consumers. Another area that could be impacted by these tariffs is the automotive industry. After the initial tariffs on steel and aluminum were imposed, car manufacturers like Ford and General Motors warned that these measures would add significant costs to their operations. Morningstar, a financial services firm, estimated that the tariffs could lead to a price increase of around $300 for consumers purchasing new cars. David Whiston, an analyst at Morningstar, noted that Ford might face similar cost increases this time around, but it remains uncertain how much of these costs will be passed on to buyers. The current market conditions, where car sales have not yet returned to pre-pandemic levels, may limit the extent to which companies can raise prices. Ford's CEO, Jim Farley, highlighted the challenges posed by these tariffs, stating that they are causing considerable costs and chaos within the industry. Furthermore, TD Economics has estimated that if blanket tariffs on goods from Canada and Mexico are implemented, the price of cars could increase by approximately $3,000. Lastly, the construction industry is another sector that could feel the effects of these tariffs. Steel is a crucial material used in construction, from building frames to appliances. Carl Harris, the chairman of the National Association of Home Builders, expressed concerns that the decision to impose tariffs on steel and aluminum contradicts Trump's stated goal of making housing more affordable. He warned that these tariffs would raise costs and deter development and rebuilding efforts. Ultimately, consumers may bear the burden of these tariffs through higher home prices. The National Association of Home Builders has urged the president to exempt building materials from the proposed tariffs. In 2018, when steel tariffs were first imposed, appliance manufacturer Whirlpool experienced a significant increase in costs, amounting to $350 million, due to rising steel prices. Companies that cannot absorb these additional costs may have no choice but to pass them on to consumers through higher prices in stores.