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The Hill
an hour ago
- Business
- The Hill
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK (AP) — President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The staggering 50% levies on those imports took effect Wednesday, stoking fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and often taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh on Friday. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system' are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at msedensky@ and
Boston Globe
5 hours ago
- Business
- Boston Globe
Higher tariffs on steel and aluminum imports go into effect
Advertisement In an executive order, Trump said the higher tariffs would 'more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Kevin Dempsey, the president of the American Iron and Steel Institute, an industry group, praised the move. He said China and other countries oversupplied the international market, making it harder for U.S. producers to compete. 'Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers,' Dempsey said. But companies that use steel and aluminum to make their products criticized the tariffs, saying they would add costs for American consumers. Advertisement Robert Budway, the president of the Can Manufacturers Institute, said doubling the steel tariff would further increase the cost of canned goods at the grocery store. 'This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers and can makers,' he said. Wednesday's increase is the latest in a mounting array of import taxes that Trump has announced since returning to the Oval Office in January, including the 25% tariff on steel and aluminum in March. Taken together, the president's trade tactics have increased concerns of a global downturn and heightened corporate America's worries about the cost of doing business. Economists have pointed out that tariffs on factory inputs such as metals risk slowing U.S. manufacturing, since they raise prices for factories. By adding to the cost of making cars, drilling for oil and building data centers, higher steel tariffs could slow other goals of the Trump administration. An economic analysis published by the U.S. International Trade Commission, an independent, bipartisan government agency, suggested that while the steel and aluminum tariffs levied in Trump's first term helped American steel and aluminum producers, they hurt the broader economy by raising prices for many other industries, including automaking. U.S. unions and major companies like Cleveland-Cliffs and U.S. Steel, which have significant lobbying networks, have argued that tariffs are necessary to keep them in business. After struggling financially for years, U.S. Steel agreed in late 2023 to be acquired by Nippon Steel of Japan, though Trump will make the final call on whether the merger can go through. Advertisement Foreign governments have bristled at the idea that their steel exports are a national security threat to the United States, in part because American demand for the metals far exceeds the country's current ability to produce them. The United States imports very little steel directly from China because of the tariffs that were previously in place. But the U.S. steel industry argues that China's massive steel production pushes down the price of metal globally, making it harder for U.S. mills to compete. Canada is the largest foreign supplier of both steel and aluminum to the United States. Mexico, Brazil, South Korea and Germany are also major suppliers of steel, while the United Arab Emirates, China and South Korea supply the United States with small amounts of aluminum. Catherine Cobden, the president of the Canadian Steel Producers Association, a trade group, said doubling the tariff on imported steel 'essentially closes the U.S. market to our domestic industry.' The previous 25% tariff on steel already had an effect on Canada's producers. The steel association estimates that since the tariff went into effect in March, steel shipments to the United States from Canada have fallen 30%. 'Steel tariffs at this level will create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border,' Cobden said. The Aluminium Association of Canada said in a statement Tuesday that the expanded tariff 'makes Canadian exports to the U.S. economically unviable' and that 'the industry may be forced to diversify trade toward the European Union.' Electricity accounts for about 40% of the cost of smelting aluminum, and the trade group estimated that replacing Canadian aluminum with American production would require the expansion of U.S. power generation equivalent to four Hoover Dams. Advertisement 'The Canadian industry supports the U.S. goal of increasing domestic aluminum production capacity from 50% to 80%,' the group said. 'Punitive tariffs do not create the certainty needed for long-term, capital-intensive investments. Even with higher domestic output, the U.S. will continue to rely on substantial aluminum imports. Industry analysts have said the U.S. tariffs have not significantly curbed shipments from Canadian aluminum mills. The U.S. aluminum industry is too small to significantly replace imports from Canada without expansion and investment. Century Aluminum, a U.S. aluminum maker, said last year that it would build the first new aluminum smelter in the United States in half a century, doubling domestic production. But the United States would remain dependent on imports for most of its aluminum. This article originally appeared in .
Qatar Tribune
3 days ago
- Business
- Qatar Tribune
Spike in steel tariffs could imperil Trump promise of lower grocery prices
Agencies President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more.'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system' are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade.
Japan Today
4 days ago
- Business
- Japan Today
Spike in steel tariffs could imperil Trump promise of lower grocery prices
FILE - A Tariff Free sign to attract vehicle shoppers is at an automobile dealership in Totowa, N.J., on April 30, 2025. (AP Photo/Ted Shaffrey) By MATT SEDENSKY President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system" are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
4 days ago
- Business
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK -- President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system" are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.'
