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
State Department confirms Foreign Service Officer is suspect in Virginia 'road rage' mass stabbing

Foreign Service Officer Identified as Suspect in Virginia Road Rage Stabbing Incident, Says State Department

The State Department has confirmed to Fox News Digital that the suspect…
NY fraud tip spurred FBI probe of LAUSD Superintendent Alberto Carvalho, report

Exclusive: Inside the NY Tip That Sparked an FBI Investigation into LAUSD’s Alberto Carvalho

Los Angeles Unified School District Superintendent Alberto Carvalho has been under federal…
Disney confirms MERMAIDS with 'ZOMBIES 5' greenlight, starring Freya Skye and Malachi Barton

Disney Unveils ‘ZOMBIES 5’: Mermaids Join the Cast with Freya Skye and Malachi Barton Leading the Charge

LOS ANGELES — Disney+ and Disney Channel have officially given the green…
After a storied civil rights career, Rev. Jesse Jackson heads home to South Carolina to lie in state, continue funeral services

Rev. Jesse Jackson’s Legacy Honored: Civil Rights Icon Returns to South Carolina for Final Tributes

In a poignant ceremony on Monday, civil rights icon Jesse Jackson Sr.…
Iranians are doing the 'Trump dance' to thank him for taking out Ayatollah Khamenei

Iranians Celebrate with ‘Trump Dance’ in Response to Ayatollah Khamenei’s Downfall

In a wave of online fervor, Iranians around the globe have been…
Gas prices cross $3 gallon for first time since November — and Americans could face more pain at pump

U.S. Gas Prices Surge Above $3 per Gallon, Marking Highest Spike Since November – What This Means for Drivers

U.S. retail gasoline prices have surpassed $3 per gallon for the first…
Trump presses NATO partners on support as Hegseth blasts hesitation

Trump Urges NATO Allies for Stronger Support Amid Criticism from Hegseth on Delays

In a recent briefing, Secretary of War Pete Hegseth expressed concern over…
High school senior gunned down at random while getting into rideshare months before graduation

Tragic Loss: High School Senior Fatally Shot Before Graduation While Entering Rideshare

A high school student from Connecticut tragically lost his life just a…
Remains found in Australia ID'd as backpacker Celine Cremer

Missing Backpacker Celine Cremer’s Remains Discovered in Australian Wilderness

Human remains discovered in Tasmania have been conclusively identified as belonging to…
Firebrand anti-American cleric Alireza Arafi seen as contender to replace Iran’s Khamenei

Could Alireza Arafi Be Iran’s Next Supreme Leader? Speculation Grows

In the wake of the death of Iran’s supreme leader, Ayatollah Ali…
FBI remains on high alert, DHS memo warns of lone wolf attacks amid war with Iran

Heightened Alert: FBI and DHS Warn of Increased Lone Wolf Threats Amid Tensions with Iran

Tensions are rising as the FBI maintains heightened vigilance during the ongoing…
Supreme Court blocks law against schools outing transgender students to their parents in California

Supreme Court Halts California Law Protecting Transgender Students’ Privacy Rights

The Supreme Court has paved the way for California schools to inform…