Steel, aluminum tariffs starting today
Starting today, new 25% tariffs on all steel and aluminum imports will take effect.
(CNN) Starting today, new 25% tariffs on all steel and aluminum imports will take effect, potentially raising prices for American consumers. The tariffs will require U.S. businesses to pay extra costs when importing these metals, and the financial impact could be substantial, according to Commerce Department statistics. Last year, the U.S. imported over $58 billion worth of aluminum, steel, and iron.
Adam Charnack, co-founder of Hi-Wire Brewing, shared how these rising costs are already affecting his business. “Our cost of goods have gone up.” This shift in pricing is not limited to breweries, as the tariffs could have a ripple effect across several industries. Richard Clarida, former Vice Chair of the Federal Reserve, explained that the tariffs could also hurt U.S. companies. “A tariff on a lot of Canadian exports is a tariff on U.S. companies who make cars in the U.S.”
Economists predict that businesses will likely pass on some, if not all, of the added costs to consumers. Auto prices, in particular, could increase since cars contain large amounts of steel and aluminum. Homebuilders are also feeling the impact, with prices already skyrocketing. “Prices have gone through the roof, and they’ve gone higher,” said Karim Walji, a Canadian homebuilder.
In addition to automobiles and housing, prices for appliances, machinery, medical devices, power lines, and beverage cans may also rise. Charnack added that his brewery’s costs have already increased: “Our cans have already gone up in price. Bottom line, it’s going to eat into a good part of our profits.”
On the flip side, domestic steel and aluminum producers could benefit from the tariffs as U.S. companies may opt to pay higher prices to avoid the 25% “pseudo-tax.” The Trump administration argues that supporting domestic manufacturers goes beyond economics. White House trade adviser Peter Navarro stated, “We can’t have a country defendable without a solid steel and aluminum industry.”
