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
3 killed in US strike on Colombian ELN vessel smuggling narcotics, Hegseth says

U.S. Strike on Colombian ELN Vessel Results in 3 Fatalities Amid Narcotics Smuggling Crackdown, Reports Hegseth

In a significant operation targeting drug trafficking, three suspected narco-terrorists were killed…
JD Vance Challenges Dems to Denounce Mamdani Appearing With 1993 WTC Bombing 'Unindicted Co-Conspirator'

JD Vance Urges Democrats to Condemn Mamdani for Association with Controversial 1993 WTC Bombing Figure

As previously noted, Vice President JD Vance took the stage at Camp…
Teen killed by stray bullet while playing video games inside St. Louis home: 'Horrible nightmare'

Tragic Incident: Teen Fatally Struck by Stray Bullet While Gaming at Home in St. Louis

In a tragic incident, a 14-year-old high school freshman from Missouri lost…
Two IDF soldiers killed amid 'severe' ceasefire violation, 'it's not the last,' analyst says

Ceasefire Shattered: Two IDF Soldiers Killed, Analyst Warns of More to Come

Two soldiers from the Israel Defense Forces (IDF) have been killed by…
Trump administration to defend Alina Habba's tenure as top New Jersey prosecutor

Trump Administration Set to Defend Alina Habba’s Role as Leading New Jersey Prosecutor

PHILADELPHIA (AP) — On Monday, the federal appeals court will deliberate on…
Chicago Bears game today: Teams seeks fourth straight win, look to avoid letdown against NFC-worst Saints Sunday at Soldier Field

Chicago Bears Aim for Fourth Consecutive Win Against Struggling Saints at Soldier Field

CHICAGO — This Sunday, the Chicago Bears aim to continue their winning…
Israel strikes Gaza after it says Hamas attacked across ceasefire line

Israel Launches Retaliatory Strikes on Gaza Following Alleged Hamas Ceasefire Breach

Israel launched strikes on targets in the southern Gaza Strip on Sunday…
Shooting at Oklahoma State University residence hall leaves multiple victims

Multiple Injuries Reported in Oklahoma State University Dorm Shooting Incident

A shooting incident at an Oklahoma State University (OSU) dormitory resulted in…
Thieves steal several pieces of French Crown Jewels collection inside the infamous Louvre in Paris, France

Heist at the Louvre: French Crown Jewels Stolen in Bold Theft

In a daring heist that unfolded in mere minutes, thieves targeted the…

Massive Orthodox Jewish Protest in NYC: Sparks Fly Over Controversial Israeli Military Draft Reform

NEW YORK (AP) — On Sunday, streets and sidewalks near the Israeli…
Former MLB player Jesús Montero dies two weeks after motorcycle crash

Tragic Loss: Ex-MLB Star Jesús Montero Passes Away Following Motorcycle Accident

CARACAS (AP) — Venezuelan Jesús Montero, who once graced the fields with…
ICE Chicago news: Immigration Enforcement, Border Patrol officials to testify on federal agents' use of force, tear gas Monday

Chicago Spotlight: Federal Officials Set to Address Use of Force and Tear Gas in Immigration Operations

Broadview, Illinois (WLS) — The scene outside the Broadview Immigration and Customs…