Rising Steel Tariffs: How They Could Threaten Trump’s Pledge for Lower Grocery Prices

NEW YORK (AP) — President Donald Trump recently raised tariffs on foreign steel and aluminum to 50%. This decision has unexpected implications for grocery store prices. While the focus is often on big purchases like cars or appliances, these metals play a vital role in packaging. As a result, we might see costs increase for everyday items from soup to pet food.

Usha Haley, a trade expert from Wichita State University, warns this could ripple through various industries, straining international relations without boosting U.S. manufacturing in the long term.

Despite Trump’s assurances that these tariffs will strengthen the U.S. steel industry, they may clash with his promise to lower food prices. In fact, grocery costs were a big reason many voters supported him. Supermarkets are filled with products like canned goods that could see price hikes due to the new tariffs. Robert Budway, president of the Can Manufacturers Institute, emphasized that domestic production of tin mill steel has decreased, leading to increased reliance on imports. When these costs rise, American families feel the pinch.

Food companies like Campbell and ConAgra are already assessing how to handle the tariffs—unfortunately, raising prices may be unavoidable. As ConAgra’s CFO noted, they can’t source all their materials locally due to limited supply.

Economists caution that the impact extends beyond canned food. If essential items like trucks and store infrastructure become more expensive to obtain, those costs will inevitably flow through the system. Babak Hafezi, an international business expert, says if machinery prices surge, consumers will ultimately pay more across the board.

Trump announced these tariffs to applause at a Pittsburgh rally, framing them as beneficial to steelworkers. However, David McCall, president of the United Steelworkers International union, acknowledged that while tariffs can help, broader reforms in trade are also necessary.

The relationship between these tariffs and everyday prices can be complex. Andreas Waldkirch, an economics professor, points out that while some steel jobs may gain, the overall economic impact can be negative. Indirect costs can lead to job losses in other sectors, making the balanced benefits of tariffs questionable.

In summary, while the immediate aim is to bolster the steel industry, the overall effect on grocery prices and the broader economy could be significant.

For further reading on this topic, please refer to NBC News.

Source link

Donald Trump, Metals and mining, Public health, International trade, Government policy, Economic policy, Cars, Wichita, Pittsburgh, General news, Domestic News, Tariffs and global trade, Business, Usha Haley, Conagra Brands, Inc., David McCall, The Goldman Sachs Group, Inc., U.S. news, Matt Sedensky, Robert Budway, Andreas Waldkirch, U.S. News