American Products Likely to See Price Hikes Due to Metal Tariffs
US Steel and Aluminum Tariffs Set to Increase Prices on Key Goods
The United States is preparing to impose a 25% tariff on all steel and aluminum imports, ending exemptions for major trade partners such as Canada, Mexico, Brazil, and the European Union. The new tariffs, announced by President Donald Trump, are expected to take effect next month and will raise costs for businesses that rely on these metals.
As companies absorb these additional expenses, many could pass them on to consumers, leading to price hikes on a range of products. Given steel and aluminum’s critical role in manufacturing, several key goods are likely to become more expensive.
Canned Food, Beer, and Soft Drinks
Currently, around 70% of the steel used for food cans in the U.S. is imported from countries like Germany, the Netherlands, and Canada, according to the Can Manufacturers Institute (CMI). While past tariffs allowed can-makers to secure exemptions, steel manufacturers have since cut production, further driving up costs.
Robert Budway, president of the CMI, warned that without exemptions, U.S. grocery prices for canned foods are likely to rise. “While the president may believe these tariffs protect the steel industry, they undermine food security and supply resilience for American canned goods,” he said.
Aluminum tariffs will also impact beverage producers. Companies like Coca-Cola have warned that rising costs could lead to higher prices for beer and soft drinks. While Coca-Cola CEO James Quincey reassured investors that the company would try to manage costs, price increases remain a possibility.
Automobiles
When steel and aluminum tariffs were first introduced during Trump’s previous term, car manufacturers, including Ford and General Motors, warned that the measures would add about $1 billion to their costs. Analysts estimated that consumers could see vehicle prices rise by about 1%, or roughly $300 per car.
David Whiston of Morningstar believes Ford may face similar cost increases this time. However, affordability concerns—especially in a market still recovering from pre-pandemic levels—could limit how much of those costs are passed on to buyers.
Michael Wall, an auto analyst at S&P Mobility, noted that Trump’s proposed tariffs on all imports from Canada and Mexico, currently on hold until March, could have an even greater impact. TD Economics estimates that if those tariffs are implemented, car prices could rise by as much as $3,000.
Ford CEO Jim Farley has already voiced concerns about the financial strain the tariffs would place on automakers, calling the situation “a lot of cost and a lot of chaos” at a recent business conference.
Construction, Housing, and Appliances
The construction sector is one of the largest consumers of steel, using it for everything from building frames to home appliances. Carl Harris, chairman of the National Association of Home Builders, criticized the tariffs, arguing that they contradict Trump’s goal of making housing more affordable. “Ultimately, consumers will pay for these tariffs through higher home prices,” he warned.
The industry is urging the administration to exempt building materials from the tariffs, fearing that rising costs will slow development and reconstruction efforts.
Similarly, appliance makers have already felt the impact of past tariffs. After the 2018 steel tariffs, Whirlpool reported an unexpected $350 million jump in costs. If companies cannot absorb similar increases this time, consumers will likely see higher prices for household appliances.
Looking Ahead
Trump has made it clear that no exemptions will be granted—either for specific products or individual countries. However, businesses in affected sectors are lobbying for reconsideration. As the tariffs take effect, consumers may soon feel the financial impact across a variety of everyday goods.
