Trump administration Tariffs for aluminum and steel increased To this day it's 50%, a move expert says everything from home and cars to home and office supplies can add to the cost.
While the U.S. carved its own niche in its domestic metal manufacturing industry, it also relied on imports from abroad to fill the gap: The U.S. imported 26.2 million tons of steel and 5.4 million tons of aluminum from abroad last year. Canada is the largest foreign source of two metals.
The White House has been actively trying to reliably dictate the United States on foreign countries. 25% tariff on steel and aluminum In February, national security issues were cited. President Trump announced he was when he visited the US Steel Plant in Pittsburgh on May 30 Double that speed up 25% tax to 50%. Higher tariffs came into effect Wednesday at 12:01 AM ET.
Even though the new tariffs have won the victory of some of the largest steel manufacturers in the United States, they see Huge profits At the stock price after Trump's May 30 announcement, experts said taxes would increase manufacturing costs on a wide range of products, making many commodities more expensive. That's because businesses usually transfer most or all tariff-related fees to consumers By higher pricesAccording to economists.
“This will hurt people working in these industries and put their work stress on it,” said Wayne Winegarden, a senior fellow and director of the right-leaning think tank Pacific Institute. “And this will put pressure on consumers, as these prices will rise.”
Although some businesses may end up Select to absorb Experts say some of these increased costs may transfer some of them to customers — just like the first Trump administration’s tariffs on steel and aluminum in 2018.
Here are some consumer products, now effective 50% steel and aluminum tariffs may become more expensive.
Automakers may feel the burning of higher tariffs as they rely heavily on steel and aluminum to produce cars. These materials are found throughout the car's body and structure, from the car's frame to the engine parts to the hubcaps, ducts and bumpers. According to Jay Cushing, senior bond analyst at GIMME Credit, steel accounts for 60% of the average vehicle weight.
Dean Baker, a senior economist at the Center for Economic and Policy Studies, told CBS MoneyWatch that there is about $800 in steel per vehicle. With that figure in mind, he expects tariffs to increase the cost of cars by $400.
However, Cushing's price is even higher. "Increasing tariffs from 25% to 50% could increase the cost of a car from $1,500 to $3,000 per vehicle," he told CBS MoneyWatch in an email.
Although the Trump administration owns Soften industry tariffs To ensure that the additional import tax on imported steel and aluminum is less than twice. "Metal tariffs should apply only once per vehicle," Cushing said.
When shopping for new equipment such as baseball bats, tennis rackets and hockey sticks, athletes may also find a slight increase in prices, sometimes containing aluminum. Industry experts say they have seen prices for aluminum bats that are quite expensive at first: in many cases, up to $100 and up to $400 for premium models.
These higher prices may end up having a negative impact on sports participation. The Sports and Fitness Industry Association, which tracks industry data, has been finding that the lowest household income barriers have the most negative impact on sports participation.
"If we are going to continue to increase the cost of equipment, then those low-income families will continue to stay on the sidelines, literally and symbolically," said Todd Smith, president and CEO of the Sports and Fitness Industry Association.
Whether it's beer, soda or Seltzer, any drink in the can could cost Americans more if it's a beer, soda or Seltzer.
This could lead to a major name brand business changing its strategy. Back in February Coca-Cola CEO says If aluminum cans become more expensive, the company will pay more attention to plastic bottles. Quincy said on a company earnings call in February that the soda giant’s aluminum source is Canadian canned food.
In the grocery store, Americans may feel a little pinched another place. It is often considered aluminium, chickpeas and soup, or non-rotten items, and is often considered a way for shoppers to save. But steel and aluminum prices may increase the price of canned goods.
Robert Budway, chairman of the CAN Manufacturer Institute, told The Associated Press that in recent years, manufacturers have become increasingly reliant on imported materials, and American households are likely to bear the increase in tariff costs.
Baker, an economist at the Center for Economic and Policy Research, has no definite estimates, but says the increase in the cost of canned goods will be quite low. "If you get $2 for soup, maybe it'll go up one or two," he said.
Grocery stores may also increase price increases. Baker said many of the packaging items are made from steel and aluminum machines, meaning products such as cookies may become more expensive.
Equipment from dishwashers and clothes dryers to garbage disposal and air conditioners has become more expensive due to the Trump administration's 50% steel and aluminum tariffs.
The Home Equipment Manufacturers Association did not respond to a request for comment from CBS MoneyWatch, but has said in the past that it strongly supports the "integrated North American market" and calls for a "common sense" trade policy.
"It can range from the grandeur of washing machines and cars to the trivial people like staple food or paper clips," said Winegarden of the Pacific Research Institute.
Lawn mowers can also see prices rising. Baker estimates that the price of lawn mowers will be $250 billion after the tariffs come into effect.
"Will people notice it? Some do, some don't," he said. "But there is no doubt that the direction is higher - what is the question."
Building materials may also be affected and will eventually translate into higher housing prices.
In an April blog post, Realtor.com documented how the price of nails used in home construction due to tariffs began to rise. A box of coil roof nails could increase from $65 to $325, the real estate platform at the time.
Other products used in home buildings such as steel fasteners may also be clamped by the tariff crosshairs. It's already bad for the housing sector, which is already under pressure from high prices, steep mortgage rates and lack of inventory.
"President Trump's move toward double steel and aluminum tariffs will negatively impact housing affordability by further undermining the supply chain of building materials and aggravating business uncertainty," said Buddy Hughes, president of the National Association of Housing Builders.
Before introducing a new 50% tariff, the Trade Association estimates that tariff activities will increase the average cost of new homes by about $10,900.