Steel and aluminum tariffs could cause broad price hikes across industries, experts say

The recent announcement of 25% tariffs on all U.S. steel and aluminum imports is causing concern across various industries. These tariffs are expected to result in higher prices for a wide range of consumer goods, from cars and washing machines to canned foods and beverages. The impact of these tariffs is expected to be far-reaching, affecting any product that utilizes steel or aluminum in its production process.

According to international trade expert Christine McDaniel, all manufacturing sectors that rely on steel or aluminum will be affected by these tariffs. This includes industries such as automotive, electronics, construction, and even food packaging. As a result, consumers can expect to see price hikes on a variety of products in the coming months.

One of the most significant impacts of these tariffs will be felt in the automotive industry. Car manufacturers, as well as suppliers, are expected to face higher production costs, which will ultimately be passed on to consumers. The American Automotive Policy Council has already warned that these tariffs will add significant costs for automakers and consumers alike.

In addition to the automotive industry, the construction sector will also be hit hard by these tariffs. Metal parts used in the construction of homes, such as doors and window frames, will become more expensive, leading to higher costs for homebuilders. Estimates suggest that these tariffs could add up to $10,000 to the cost of a new home.

Furthermore, machine parts used in a variety of appliances, from dishwashers to air conditioners, are also likely to see price increases. Gym and sports equipment manufacturers may have stockpiled materials in anticipation of the tariffs, but consumers can still expect to see higher prices in the near future.

The food and beverage industry will also feel the effects of these tariffs, particularly in the form of higher costs for aluminum cans. Companies like Coca-Cola have already expressed concerns about the impact of these tariffs on their packaging costs. If aluminum cans become more expensive, companies may shift towards other packaging materials, such as plastic bottles.

Overall, the tariffs on steel and aluminum imports are expected to have a significant impact on a wide range of industries, leading to higher prices for consumers. Small and midsize businesses are likely to be disproportionately affected, as they may struggle to absorb the increased production costs. As businesses pass on these costs to consumers, inflationary pressures are expected to rise, further impacting the economy.