Buckle up, folks! Here's a rundown of how President Trump's escalation of steel and aluminum tariffs might affect the goods and services you love:
Steel your wallet, here comes the surge!
Trump's imposition of increased tariffs on steel and aluminum may potentially inflate their costs
With the tariffs jumping from 25% to a whopping 50%, a whole bunch of everyday items could see a price hike. Experts have weighed in, predicting higher prices for goods made out of steel and aluminum.
As Kyle Handley, an economics professor from the University of California, San Diego, put it, "Fifty percent is incredibly high." So, what does this mean for your shopping cart?
Cars and Trucks
Steel accounts for a whopping 60% of a car's weight, as per the American Iron and Steel Institute. With those steel imports slapped with hefty taxes, U.S. manufacturers are in for higher input costs. Guess who foots the bill? You're right, the vehicle purchasers! Experts say a car's price tag could rise by $2,000 to $4,000 due to the new tariff level.
Soup, Soda, and Beer
Aluminum cans might soon be a luxury when it comes to your weekly grocery run. Elevated aluminum tariffs could lead to higher prices for packaged goods such as beer, soft drinks, and soup. According to William Hauk, a professor of economics at the University of South Carolina, each can of soup or soda could cost an extra penny.
"It isn't a huge amount on its own, but if you think about the number of sodas or beers people have out of aluminum cans in a year, it adds up over time," Hauk explained.
The beverage industry already paid a steep $1.7 billion price between 2018 and 2022 due to the 25% tariffs on aluminum, as reported by the Beer Institute, an industry trade group.
Refrigerators, Washing Machines, and Dishwashers
These major home appliances also rely on steel, making them vulnerable to potential price surges. As Handley pointed out, "All those things will be even more expensive to produce if the steel and aluminum inputs are more costly, which they absolutely will be." During the steel and aluminum tariffs during Trump's first term, major appliances showed price increases between 5% and 10%, eclipsing the 2% overall inflation rate.
Alas, that's not all! Appliances aren't the only items you can say goodbye to your money on. A wide array of products such as construction materials, machinery, and electronics could also see a price increase, depending on their specific industry.
History Might Repeat Itself
Sadly, this isn't the first time we find ourselves in uncharted territory with steel and aluminum tariffs. As Hauk noted, we haven't seen such high tariffs on these materials since the mid-1930s. Buckle up, America, it's gonna be a bumpy ride!
- The surge in steel and aluminum tariffs from 25% to 50% could result in higher prices for various goods and services, affecting your wallet in unexpected ways.
- The automobile industry may experience significant increases in production costs due to the tariffs, causing car and truck purchasers to potentially face a price hike of $2,000 to $4,000 per vehicle.
- The potential cost of packaged goods like beer, soft drinks, and soup could rise with the escalation of aluminum tariffs, with each can possibly increasing by an extra penny.
- Major home appliances, such as refrigerators, washing machines, and dishwashers, could become more expensive to produce due to increased steel and aluminum costs, potentially resulting in price surges.
- History may repeat itself as we haven't seen such high tariffs on steel and aluminum since the mid-1930s, suggesting a bumpy ride ahead for the economy, business, and politics in general-news.
