President Donald Trump recently announced new tariffs on steel and aluminum, adding a 25% tax on foreign steel and aluminum imports. These tariffs, which will take effect next month, are expected to increase prices on many common products made from these metals, experts told ABC News.
How Tariffs Impact Prices
When the U.S. imposes tariffs on imported materials, companies that use these materials—such as carmakers, beverage companies, and appliance manufacturers—have to pay higher costs. To compensate for these extra expenses, they often raise the prices of their products, making everyday items more expensive for consumers.
Kyle Handley, an economics professor at the University of California, San Diego, explained that price increases could start appearing within three months to a year. The White House, however, defended the tariffs, saying they would help American industry and create economic growth.
Products That May Become More Expensive
Cars and Trucks
Steel makes up about 60% of a vehicle’s weight, so when steel prices rise, car manufacturers face higher costs. This can lead to increased prices for consumers. “There’s a lot of metal in a Ford truck,” Handley said. “If it’s more expensive, they’ll have to charge more.” Ford CEO Jim Farley also noted that tariffs are creating “cost and chaos” for the industry.
Soda and Beer
Aluminum is a key material in beverage cans, and past tariffs on aluminum added $1.7 billion in costs to the U.S. beverage industry between 2018 and 2022. The Beer Institute, an industry group, warned that new tariffs will make beer and soda more expensive. The Illinois Craft Brewers Guild also stated that small breweries and their customers will be affected.
Home Appliances
Steel is used in major home appliances like refrigerators and washing machines. Jason Miller, a supply chain expert at Michigan State University, said that during Trump’s first term, appliance prices increased by 5% to 10% after similar tariffs were imposed. If steel and aluminum prices rise again, consumers may see similar price hikes on household items.
Bicycles
Bicycles are made from aluminum and steel, which means their prices are likely to go up. Trade organization People For Bikes has already expressed concerns about tariffs on imported goods. If manufacturers have to pay more for raw materials, customers will see higher prices in stores.
Conclusion
Tariffs on steel and aluminum will likely lead to higher prices for everyday products like cars, beverages, home appliances, and bicycles. While the government argues that these tariffs will strengthen American industry, many experts warn they could make life more expensive for consumers. As the new tariffs take effect, buyers may need to prepare for price increases in the coming months.
