Goods facing higher prices than American metal rates

A new 25% tax is imposed on the import of steel and aluminum in the United States from countries, including Canada, Mexico, Brazil, as well as the European Union.

The new tariff measures announced by President Donald Trump will mean that US enterprises who want to bring metals in the country will have to pay more.

But there is a risk that companies will convey the additional costs or some of it to the users.

Because steel and aluminum are key components in many goods, what items can become more expensive?

About 70% of the steel used in the United States to prepare canned food cans today imported from countries such as Germany, the Netherlands and Canada, according to the CAN (CMI) Institute, a business group representing canned creators.

After Trump ordered steel tariffs in 2018, many canned creators have won “exceptions” of these imports taxes, for the objections of steel manufacturers, given the limited production of steel type used to make cans in the United States.

Since then, steel manufacturers have reduced production further by raising prices, warning CMI, who sent a letter to the Trump administration earlier this month, signed by large food companies, including General Mills, Del Monte and Goya.

Robert Budway, president of CMI, said that without exception to you can produce to import steel tariffs, food prices for canned foods made in the United States, they are likely to rise.

“While the president can believe that these tariffs protect the steel industry, they are certainly undermining our food security and our resistance to supply for American canned food that Americans rely on every day,” said G -n Budway.

As for aluminum, brewers and carbonated drink producers, such as Coca-Cola, also warned that the move would add costs and could lead to higher prices for customers.

“We control enough variables that we can adapt and mitigate our path through what is happening,” said Coca-Cola CEO James Queens of investors this week.

Trump said this time there will be no exceptions to the rules or for individual products or for specific countries, but some sectors hope he will return from this position.

After Trump imposed tariffs on steel and aluminum during his first term, car manufacturers, including Ford and General Motors, warned that measures would add about $ 1 billion to each of their costs.

For customers, Morningstar estimates that tariff costs will then lead to approximately 1%or an increase in the price of $ 300 for customers.

David Wiston, an analyst at Morningstar, warned Ford to face such an increase in costs this time, but said it was not clear how users would be affected.

The pressure of market accessibility at which sales have not yet returned to the 2019 levels can limit what part of the costs that companies choose to hand over, according to Michael Wall, a S&P mobility automotive analyst.

But he said it was still “realistic” to expect some of the cost of metal tariffs to be reduced to buyers.

However, he noted that the announcement of Trump for the tariffs for all goods imported from Canada and Mexico, at the time of detention until March, would have a much more impact for buyers.

At a business conference, Ford CEO Jim Farley warned that Trump's latest moves were provoking “a lot of expenses and a lot of chaos” for his industry.

TD Economists estimated that cars could rise by about $ 3,000 if the rates for a blanket for goods from Mexico and Canada come into force.

The construction industry as a sector is one of the largest steel users, from whom developers and housing builders need everything from construction frames to appliances.

Carl Harris, chairman of the National Association of Housing Builders, said the decision to impose tariffs on steel and aluminum is “completely contradictory” to Trump's requested goal to make housing more affordable, warning that it will increase the costs and will Determine development and recovery.

“In the end, consumers will pay for these rates in the form of higher prices for housing,” he warned.

The National Association of Housing Builders urged the president to release the building materials from the proposed tariffs.

After Trump imposed steel rates in 2018, the Whirlpool appliance manufacturer confronted an unexpected 350 million leap, which is said to have been driven by a steel prices.

Companies that cannot bear such costs are likely to go through higher prices in stores.