Prices for a variety of consumer products—including vehicles, canned goods, and major appliances—may increase following a planned tariff hike on steel and aluminum, experts say.
The upcoming policy, scheduled to take effect Wednesday, will raise tariffs on foreign steel and aluminum from 25% to 50%. Industry analysts note that importers often pass on higher raw material costs to manufacturers, which can ultimately lead to higher prices for end consumers.
“Twenty-five percent tariffs were already high,” said Kyle Handley, a professor of economics at the University of California, San Diego. “Fifty percent is incredibly high.”
According to the American Iron and Steel Institute, steel comprises approximately 60% of a car’s weight. With increased import costs, automakers could see higher input expenses, which may translate into vehicle price hikes ranging between $2,000 and $4,000, according to William Hauk, an economics professor at the University of South Carolina.
The higher aluminum tariff is also expected to affect prices of canned beverages and food products such as soda, beer, and soup. Hauk estimated a potential increase of about one cent per aluminum can, a modest figure that could have a cumulative effect over time. Between 2018 and 2022, aluminum tariffs previously led to an estimated $1.7 billion in additional costs for the U.S. beverage sector, according to data from the Beer Institute.
Home appliances are also likely to be affected. Products such as refrigerators, dishwashers, and washing machines—which include steel and aluminum components—may become more expensive to manufacture, said Handley. A previous round of tariffs contributed to a 5% to 10% rise in appliance prices between June 2018 and April 2019, a period when general inflation remained near 2%, noted Jason Miller, a professor of supply chain management at Michigan State University.
Experts say this marks the highest level of tariffs on steel and aluminum imports in decades, with significant implications for both manufacturers and consumers.
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