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

Recently, President Donald Trump announced that a new 25% tax, known as a tariff, will be placed on all imports of steel and aluminum into the United States. This decision means that companies in the U. S. that import these metals from countries like Canada, Mexico, Brazil, and the European Union will have to pay more. The tariffs are set to take effect next month, and many businesses are concerned about how this will affect their costs and, ultimately, the prices that consumers will pay for various products. The Can Manufacturers Institute, which represents companies that produce cans, has warned that the increased costs of steel could lead to higher prices for canned foods, beer, and soft drinks. Currently, about 70% of the steel used in the U. S. to make food cans is imported. After previous tariffs were imposed in 2018, many can manufacturers received exemptions, allowing them to import steel without paying the extra tax. However, with the new tariffs, these exemptions will not be available, and the prices of canned goods are likely to rise. Robert Budway, the president of the Can Manufacturers Institute, expressed concern that these tariffs could undermine food security in America, as they would make it more difficult for companies to produce affordable canned foods that many people rely on daily. The automotive industry is another sector that could be significantly impacted by the new tariffs. Major car manufacturers like Ford and General Motors have already indicated that the tariffs could add around $1 billion to their costs. Analysts estimate that this could result in an increase of approximately $300 in the price of cars for consumers. David Whiston, an analyst at Morningstar, noted that while it is uncertain how much of the costs will be passed on to buyers, it is realistic to expect some price increases. The car market is still recovering from the effects of the pandemic, and affordability is a major concern for many consumers. Ford's CEO, Jim Farley, has warned that the recent tariff announcements are causing significant challenges and costs for the automotive industry. Lastly, the construction industry is also facing challenges due to the new tariffs. Steel is a crucial material for construction, as it is used in building frames, appliances, and various other components. Carl Harris, chairman of the National Association of Home Builders, stated that the decision to impose tariffs on steel and aluminum contradicts the goal of making housing more affordable. He warned that these tariffs would raise costs and deter development, ultimately leading to higher home prices for consumers. The National Association of Home Builders has urged the president to exempt building materials from the proposed tariffs. Additionally, appliance manufacturers like Whirlpool have already experienced significant cost increases due to rising steel prices. If companies cannot absorb these costs, they will likely pass them on to consumers through higher prices in stores. In summary, the new tariffs on steel and aluminum could lead to increased prices for a variety of everyday products, affecting consumers across multiple industries.