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
Man being detained, Apple Pay prank gone wrong, London Eye in background.

TikTok Influencer Faces Instant Karma After Prank Backfires on Wrong Target

A TIKTOK influencer experienced immediate consequences when a prank went terribly wrong.…
Harvey shooting injures Willow James, 11, while driving home from school; family seeks answers

11-Year-Old Willow James Injured in Harvey Shooting on Way Home from School; Family Demands Answers

HARVEY, Ill. (WLS) — An 11-year-old girl is in the hospital, after…
Communist country dumps decades-old 2-child policy as birth rates plummet to alarming levels

Communist Nation Abandons Long-Standing Two-Child Policy Due to Drastically Falling Birth Rates

NEWYou can now listen to Fox News articles! Vietnam has ended its…
Crowded beach with people swimming and relaxing under umbrellas.

New Ban Restricts Popular Item on Beach, but Allows One Exception

A SURPRISING item is now banned at a popular US beach destination.…
Wedding photo of a bride and groom.

YouTuber Confesses to Stabbing Wife to Death While She Walked with Their Baby in a Pram—But Denies Murder Charge

A YOUTUBER has admitted stabbing his wife to death as she pushed…
President Donald Trump speaking at a podium.

Trump Praises Ukraine’s ‘Op Spiderweb’ Drone Strikes as Bold, While Concerned About Putin’s Reaction After Critical Call

DONALD Trump has hailed Ukraine’s daring “Operation Spiderweb” attack as “strong and…
What is happening to job corps? Judge temporarily blocks Trump administration dismantling of program, including Chicago site

Judge Temporarily Halts Trump Administration’s Plan to Close Job Corps Sites, Including Chicago Location

CHICAGO (WLS) — In New York, a federal judge issued a temporary…
Troubled ex-NFL star turned UFC fighter Greg Hardy arrested for allegedly assaulting family member

Former NFL Player and UFC Fighter Greg Hardy Detained on Suspicion of Family Member Assault

Troubled former NFL star turned UFC fighter Greg Hardy had been arrested…
Woman in floral dress standing in front of a mosque at night.

Missing Escort’s Disappearance: Body Discovered and Client Arrested After Disturbing Confession

A WOMAN who vanished in Italy last month has been found brutally…
Florida teacher, 28, accused of sending lewd photo to middle school student via social media

A 28-year-old Florida Teacher Allegedly Sends Inappropriate Photo to Middle School Student Through Social Media

NEWYou can now listen to Fox News articles! A Florida middle school…
Biden Fumbled, Trump Delivered: The Steel Deal That Proves the Difference

Biden vs. Trump: The Steel Deal Highlights Their Differences

When future economic historians look back at the journeys of U.S. Steel…
Tragic balloon accident claims life of 6-year-old boy

6-Year-Old Boy Loses Life in Balloon Accident

Gunner Matthew Hyatt died a week after his 6th birthday, according to…