Spike in steel tariffs could imperil Trump promise of lower grocery prices
Share this @internewscast.com

NEW YORK (AP) — The imposition of President Donald Trump’s increased tariffs on foreign steel and aluminum may impact Americans in an unexpected sector: the grocery store aisles.

The Friday announcement of a hefty 50% duty on these imports has sparked fears that significant purchases, such as vehicles, appliances, and real estate, may experience substantial price hikes. However, because these metals are extensively used in packaging, their effects could extend to a wide range of consumer goods from soup to nuts.

“Rising grocery prices would be part of the ripple effects,” states Usha Haley, a trade expert and professor at Wichita State University. She noted that the tariffs might elevate costs across various industries and potentially strain relationships with allies “without necessarily fostering a long-term revival of U.S. manufacturing.”

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.”

___

Matt Sedensky can be reached at msedensky@ap.org and

Share this @internewscast.com
You May Also Like
Tom Cruise Just Broke an Insane World Record All To Entertain Audiences

Tom Cruise Shatters Remarkable World Record to Thrill Fans

During the making of the concluding movie in the “Mission: Impossible” series,…
How NYC is stepping up to stop attacks on Jews before they happen

NYC’s Proactive Measures to Prevent Anti-Semitic Attacks

They were young and idealistic, and devoted their lives to peace. Yaron…
Colorado firebombing attack on protesters suspect faces 118 charges

Suspect in Colorado Firebombing Attack on Protesters Faces 118 Charges

The attempted murder charges alone could result in 45-year-old Mohamed Sabry Soliman…
David Jolly Florida governor run: Ex-Republican runs as Democrat

David Jolly Switches Parties for Florida Governor Bid: Former Republican Now a Democrat

The former Republican, now registered Democrat Jolly announced his bid Thursday morning,…
TSA Privacy Rights Violation: Key Allegations Uncovered

Revealing Allegations of TSA Privacy Rights Infringements

A federal air marshal whistleblower revealed that the Transportation Security Administration (TSA)…
Marin French Cheese Company is celebrating 160 years of cheese

Celebrating 160 Years of Cheese with Marin French Cheese Company

MARIN, Calif. — Nestled on a scenic ranch in West Marin, a…
NFL news: Former Green Bay Packers, New York Jets quarterback Aaron Rodgers signs 1-year deal with Pittsburgh Steelers

NFL Update: Aaron Rodgers, Ex-Packers and Jets QB, Joins Pittsburgh Steelers on 1-Year Contract

PITTSBURGH — Aaron Rodgers and Mike Tomlin are taking their long-simmering bromance…
Grandma's recipes, mom's love inspire Indian fast-casual spot

Inspiration from Grandma’s Kitchen and Mom’s Love Ignites New Indian Fast-Casual Spot

NEW YORK — Inday is an Indian-American, fast-casual dining spot with multiple…
A BM-21 Grad multiple rocket launcher firing a missile.

Putin Plans Major Triple-Front Assault on Ukraine in an Attempt to Secure Victory, Despite Heavy Losses Nearing One Million

VLADIMIR Putin is plotting a final killer offensive along three fronts to…
CNN Scott Jennings puts head in trash representing Republicans feelings about Trump-Musk feud

CNN Analyst Scott Jennings Expresses Republican Frustration Over Trump and Musk Dispute

CNN’s conservative commentator Scott Jennings playfully placed his head in a trash…
Opposition to oil drilling off Florida's east coast unites both parties

Both Political Parties Come Together to Oppose Oil Drilling off Florida’s East Coast

The feds are considering opening up nearly all of U.S. coastline to…
Delta Air Lines passenger drunkenly slugged retiree over reclining seat: lawsuit

Lawsuit Claims Drunken Delta Passenger Punched Senior Over Reclined Seat Dispute

A retired woman mourning her son’s death was allegedly punched in the…