How Doubling Tariffs on Steel and Aluminum Will Hit U.S. Businesses and Consumers

Businesses may soon face higher prices for canned foods, cars, houses, and various other goods due to a newly doubled tariff rate of 50% for steel and aluminum imports. President Donald Trump justified the increase, which raised the levies from the previously announced 25% rate in February, as a move to bolster the domestic steel industry during a rally at a steel mill in Pittsburgh, Penn.

While American steel industry groups support the tariff hike, economic experts warn of potential disruptions to the global supply chain and increased strain on businesses and consumers. The United States, as the largest steel importer globally, relies heavily on steel imports, with over 26 million metric tons imported last year, mainly from Brazil, Canada, Mexico, South Korea, and China.

The American steel industry believes the increased tariffs will aid in fending off competition from foreign manufacturers. However, concerns arise about meeting rising demand as businesses seek cheaper alternatives due to the higher import costs. The Aluminum Association supports tariff-free Canadian aluminum, noting the industry’s dependence on Canada and the need for imported aluminum until new U.S. smelter capacity is established.

The tariff hike will likely push up prices for various products using steel and aluminum, including beer cans, automobiles, and construction materials. The Can Manufacturers Institute expressed concerns over the increased costs for canned goods, while the real estate and construction sectors are expected to face higher expenses for building materials. Negotiations continue between the U.S. and trading partners regarding the tariffs, with some expressing discontent over the heightened import taxes.