Steel and aluminum tariffs could cause broad price hikes across industries, experts say
sweep the floor Tariff 25% on all U.S. steel and aluminum imports It may cause prices for a variety of products, including cars and washing machines and other consumer goods, as well as components used to manufacture and build (such as nails).
Everything from homes and cars to metal-made from canned food and beverages may soon get new prices.
“All manufacturing industries that use steel or aluminum will be affected,” Christine McDaniel, a senior fellow at George Mason University, told CBS MoneyWatch.
Dr. Wayne Winegarden, a senior fellow and director of the right-leaning think tank Pacific Institute, called the upcoming tariff impact a “barn burner”, leading to higher prices and slowing economy.
He added that all “broad-based core goods” are vulnerable to price increases due to taxation. In addition to cars and electronics that rely heavily on metals, less obvious goods such as canned goods, which may increase if packaging costs rise.
“We’re going to see it where you don’t expect it,” Winegarden said.
American consumers may see higher prices for cars
Automobile, truck, bus and tractor parts were the largest import categories last year, which will be covered by tariffs, according to the U.S. International Trade Commission.
The U.S. Automotive Policy Committee, which represents Ford, General Motors and Stratlandis, said the new tariffs “will add huge costs to automakers, suppliers and consumers in a statement from CBS News.
Inevitably, some of these increased costs Will be passed to the consumer.
“For American companies that use steel and aluminum elsewhere, you can find it elsewhere,” Layna Mosley, professor of political and international affairs at the Princeton School of Public and International Affairs, told CBS MoneyWatch.
Metal parts on doors, window frames and other hardware used in home construction will also be subject to levy, resulting in rising costs for home builders.
Jim Tobin, CEO of the National Housing and Building Association, noted that the estimated metal tariffs could increase the cost of homes by $10,000, although he noted that the impact could take several months to clarify. He told CBS News that the fees would be passed on to the final homeowner or renter. ”
Machine parts (including wires, screws, etc.) may also hit, from dishwashers and dryers to garbage disposal and air conditioners.
“Just look around the house. Anything that has steel or aluminum inside will be exposed to the tariffs,” McDaniel said.
Mosley noted that the tariffs are expected to take effect, allowing them to drop in a short period of time, gyms and sports equipment will also be subject to tariffs, although manufacturers may have stored some materials.
Higher price for aluminum cans
In a recent report, S&P Global Ratings said that in addition to automakers, construction projects and possible defense contractors, tariffs will increase costs for “canned manufacturers including food processing and packaging.”
Coca-Cola CEO James Quincey said in a report call last month The company imports aluminum for its cansIf the tariffs make it more expensive, it may start selling more drinks in plastic bottles.
“Because we involve strategies that ensure affordability and ensure consumer demand, if the input costs of a package increase by a certain increase, we will continue to offer other packaging products that enable us to compete in the affordability field,” Quincy said. “For example, if aluminum cans become more expensive, we can place more emphasis on pet (plastic) bottles, and so on.”
“Tariffs and non-TV barriers tend to put disproportionately on small and medium-sized businesses,” Panday added. “Profits are likely to be squeezed at profit margins. In the range where businesses can transfer through rising costs, consumers will eventually see their prices rise. Overall, the pressure on inflation will rise as markets and consumers appear to be sensitive to inflation expectations.”
Co-founder Leann Darland recently told CBS News’ Kelly O’Grady that for Brooklyn-based brewery Brewery Talea, the company’s aluminum tariffs for beer can result in higher operating costs. Darran said she hopes to share any increased costs with suppliers because she is not sure if consumers are willing to swallow any price increases.
Even without tariffs, Darran said we sometimes complain that our beer is too expensive. ”
– CBS News’ Natalie brand contributed to this report.
