The goods facing higher prices from US metal tariffs

The 25% tax should be introduced to the entire import of steel and aluminum in the US, ending with the exceptions from the rules of large trading partners, including Canada, Mexico, Brazil, and the European Union.

Expanded tariff measures announced by President Donald Trump is expected to come into force next month, will mean that many US companies wishing to bring metals to the country will have to pay more.

But there is a risk that the companies will transfer the extra costs or some part of it, consumers.

Because steel and aluminum are key components in many goods that can be more expensive?

About 70% of the steel used in the US for making cans today comes from countries such as Germany, the Netherlands and Canada, reports the CAN (CMI) Institute, a business group providing manufacturers.

After Trump ordered tariffs for steel in 2018, many manufacturers have won “exceptions” from these import taxes, for objections to steel manufacturers, given the limited production of the steel type used to make jars in the US.

Since then, the manufacturers have reduced the production further, pushing the prices, warned CMI, which sent a letter to the Trump administration earlier this month, signed by large food companies, including General Mills, Del Monte and Goya.

Robert Bud well, President CMI, said that without exception, CAN produces for the import of steel tariffs, grocery prices for canned products made in the US is likely to grow.

“While the president can believe that these tariffs defend the steel industry, they certainly undermine our food security and our resistance to the American canned, which Americans are counting on every day,” Mr.

When it comes to aluminum, brewers and carbonated producers such as Coca-Cola, they also warned that this step would add costs and can increase prices for customers.

“We control enough variables that we can adapt and mitigate our way through what is happening,” said Coca-Cola CEO James Quincy this week.

Trump said there would be no liberations from the rules either for individual products or for certain countries this time, but some sectors hope he will return from this post.

After Trump imposed tariffs on steel and aluminum during his first term, cars, including Ford and General Motors, warned that measures would add about $ 1 billion to each of his expenses.

For customers, Morningstar estimates that the tariff expenses would then lead to approximately 1%, or for customers raising $ 300 prices.

David Westan, analyst Morningstar, warned that Ford could face a similar increase in expenses this time, but stated that it was unclear how the consumers would be affected.

Pressure on the availability on the market where sales should not yet return to the 2019 level, can limit how much the company’s costs are chosen to transfer, according to Michael Wola, the S&P Mobility car analytics.

But he said he was still “realistically” to count on the fact that some costs from tariffs on metals would squeeze to buyers.

However, he noted that the announcement of Trump on tariffs on all goods imported from Canada and Mexico, which are now until March, will have a much greater impact on buyers.

At business conference, Ford Executive Director Jim Farley warned that Trump’s recent steps are causing “a lot of costs and a lot of chaos” for his industry.

TD economists have estimated that cars can increase by about $ 3,000 when tariffs for Mexico and Canada’s goods came into force.

The construction industry as a sector is one of the largest steel users to which developers and domestic builders need everything from construction staff to appliances.

Carl Harris, chairman of the National Association of Builders Houses, said that the decision to put tariffs on steel and aluminum section “completely resist” the stated Trump’s target to make housing more accessible, warning that it would increase the cost and restoration.

“Ultimately, consumers will pay for these tariffs in the form of higher housing prices,” he warned.

The National Association of Builders Houses called on the president to release building materials from the offered tariffs.

After Trump imposed steel tariffs in 2018, the WHIRLPOOL devices faced a $ 350 million jump in the expenses that said it was due to the jump in steel prices.

Companies that cannot absorb such costs are likely to transmit them through higher prices in stores.