Tue, 11 Feb 2025

Tue, 11 Feb 2025 The American goods that could rise in price from metal tariffs

Donald Trump's plans for tariffs risk raising prices for items from cars to canned food.
A 25% tax will be imposed on imports of steel and aluminum into the US, affecting countries including Canada, Mexico, Brazil, and the European Union. This move is expected to increase costs for many US businesses that import these metals. As a result, prices may rise for various consumer goods:
* Canned food: 70% of US can manufacturers' steel imports come from countries like Germany, the Netherlands, and Canada. Without exemptions, grocery prices for canned foods could increase.
* Aluminum products: Brewers and fizzy drink makers, such as Coca-Cola, warn that higher aluminum costs may lead to price hikes for customers.
* Cars: Car manufacturers, including Ford and General Motors, estimate that tariffs on steel and aluminum will add around $1 billion in costs per company. This may result in a 1% or $300 price increase for consumers.
* Construction industry: Steel is a crucial component for building materials. Imposing tariffs may raise costs and deter development and rebuilding, ultimately leading to higher home prices. Some companies are urging the president to reconsider his decision or provide exemptions for specific industries or products:
* The National Association of Home Builders has asked the president to exempt building materials from the proposed tariffs.
* Appliance maker Whirlpool faced a $350m jump in costs due to steel price increases after similar tariffs were imposed in 2018.
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