Mr Trump’s steel, aluminium tariffs could raise prices for cars, beer and sweets.
Beer, cars, baseball bats, planes: these are some of the products that may be facing higher prices when new tariffs on imported steel and aluminum come into effect.
Thursday’s announcement was aimed at strengthening domestic steel and aluminum. Mr Trump said imports of steel would face a 25 per cent tariff and aluminium would face a 10 per cent tariff.
Some manufacturing advocates say the effect is small. As CNN Money reports, they say “the price increases are small because trade measures will boost U.S. steel and aluminum production.”
However, as NPR’s Jim Zarroli recently reported, other manufacturers worry about how the changes will affect the sensitive and complex supply chains of some of the country’s most famous products.
Here are some areas of concern:
For example, beverage giant MillerCoors said the move was “disappointing” and “likely to lead to unemployment across the beer industry.”
“The company said on Twitter,” we buy as many domestic cans as we can, but the supply is not enough to meet the needs of us beverage producers like us. “American workers and American consumers will be affected by this misguided tariff.”
The institute of beer, an industry association, has asked for a waiver of tariffs on aluminium used in the industry. “Imported aluminium used to make beer cans does not pose a national security threat,” the beer institute statement said.
Try not to panic, chocolate lovers: Hershey spokesman Jeff beck, told NPR, “plant and plant in the United States we use steel, aluminum used in our product packaging” – such as for packaging Hershey’s kiss.
“Such a broad and comprehensive order may be a negative impact on the entire American economy, this could damage the American jobs, and ultimately through higher prices hurt U.S. consumers, daily products” Hershey spokesman added.
American international automobile dealers association, said: “these two kinds of metal on the sales of cars and trucks in the United States today is very important for the production, and will significantly improve the selling price of the car,” the group said in a statement, according to CNBC. The U.S. auto policy committee issued a statement expressing concern that the change would put the U.S. auto industry at a “competitive disadvantage.”
However, the rise in car prices may be uneven, depending on the ratio of domestic metal to imported metals used by carmakers. CNBC reported that gm had little impact because “we bought more than 90 percent of U.S. steel products from U.S. suppliers.”
The publication added that it could also increase the cost of offshore platforms and pipelines, noting that the gas industry “relies on steel valves that are not yet manufactured in the United States.”
Defense is unlikely to be affected. According to “the Wall Street journal” reported, “the defense industry manufacturers rely on only a small part of the imported steel and aluminium demand, the defense department said last week that it does not worry about the effects of tariffs on military industrial base equipment.”
The same is true for aircraft manufacturers. NPR’s Jim Zarroli recently reported: “the U.S. aviation industry provides 2.5 million U.S. jobs and exports, mainly by importing steel and aluminum to make airplanes.”