New tariffs on steel imports ordered by President Donald Trump went into effect on Wednesday and will raise prices for groceries, construction materials, and American businesses—adding to economic burdens weighing on the economy.
Trump’s executive order increases steel tariffs from 25% to 50%. Trump claimed at a rally on Friday that the tariffs would “further secure the steel industry in the United States,” but ignored the negative effect on everyday Americans.
Many businesses rely on imported steel and aluminum products, and the increased tariffs mean the cost of doing business will be passed on to consumers and the supply of vital materials will decrease as companies redirect sales to other nations with lower, traditional tariffs.
The Can Manufacturers Institute, a trade organization representing the metal can manufacturing industry and suppliers to those companies, criticized Trump’s actions.
“Doubling the steel tariff will further increase the cost of canned goods at the grocery store. This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers, food producers, and can makers,” CMI president Robert Budway said in a statement.
According to a 2024 survey by Drive Research, canned goods are among the most common grocery items that people buy, with 65% of respondents telling the firm that they purchase them.
Companies that rely on imported steel and aluminum are also worried about finding material after Trump’s policy goes into effect. H.O. Woltz, who owns a North Carolina company that uses steel wire to reinforce concrete, asked NPR“How is it that you’re supposed to buy the most expensive steel in [the] world in the United States, and compete with global competitors who have access to world market pricing?”
The ripple effect of the price increase could lead to a major disruption in the construction industry. When the cost of steel goes up, construction expenses increase, profits drop, and budget overruns occur—leading to even more fallout for the companies involved, their suppliers, and the businesses and families relying on those transactions.
Other countries are likely to see their steel costs decrease while Americans are paying more. Analysts expect that in Europe, for instance, steel supply will increase because manufacturers won’t have Trump’s exorbitant tariffs to deal with.
Related | Trump’s favorite network melts down over ‘TACO’ insult
Before the new tariff policies went into effect, economists warned that the economy would get hurt—but just as he has with other tariffs hurting consumers, Trump has ignored the data and evidence.
Wall Street traders have adopted the acronym TACO, referencing the notion that “Trump Always Chickens Out” on tariffs and has retreated on multiple occasions when facing a barrage of negative press from his tariff actions. There is a high likelihood that Trump could do the same with steel tariffs, but in the meantime American consumers and businesses will be hurt and families will suffer as a result.
Campaign Action
