Mr Trump’s steel and aluminium prices could raise the price of cars, beer and sweets.
Beer, cars, baseball bats, airplanes: these products may face 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 steel imports would face a 25 per cent tariff and aluminium a 10 per cent tariff.
Some manufacturing advocates say the effect is small. As CNN reported, they said, “the price increase is small because trade measures will boost U.S. steel and aluminum production.”
However, as NPR’s Jim Zarroli recently reported, other manufacturers are concerned about how the changes will affect sensitive and complex supply chains for some of the country’s most famous products.
Here are some areas of concern:
Drinks giant MillerCoors, for example, said the move was “disappointing” and “could lead to unemployment across the beer industry.”
“We buy as many domestic cans as we can,” the company said on twitter, “but we don’t have enough to meet the needs of beverage producers like us.” “American workers and American consumers will be affected by this misleading tariff.”
The beer association, an industry association, has called for an end to duties on aluminium used in the industry. “Imported aluminium used to make beer cans will not pose a national security threat,” the institute said in a statement.
Try not to panic, chocolatier: Hershey spokesman Jeff baker told NPR, “we use steel in our factories and factories in the United States, and aluminum in our product packaging” – for example, kisses when packaged.
“Such a broad and comprehensive order could have a negative impact on the entire U.S. economy, which could harm U.S. jobs and ultimately hurt U.S. consumers through higher prices,” Hershey’s spokesman added.
“Sales of these two metals to us cars and trucks are very important to production today and will significantly increase the price of cars,” 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 can be uneven, depending on the proportion of domestic and imported metals used by carmakers. CNBC reported that gm had little impact because “we buy more than 90 per cent of us steel products from us suppliers”.
It could also increase the cost of offshore platforms and pipelines, the publication added, noting that the gas industry “depends on steel valves that have not yet been produced in the us”.
Defense is unlikely to be affected. According to the Wall Street journal, “defense industry manufacturers rely on only a small fraction of the need to import steel and aluminum, and the defense department said last week it was not concerned about the impact of tariffs on military industrial infrastructure.”
So do aircraft manufacturers. NPR’s Jim Zarroli recently reported: “the U.S. airline industry provides 2.5 million American jobs and exports, mainly by importing steel and aluminum to make aircraft.”