Potential Price Hikes Across Various Goods and Services in the U.S. Due to Trump's Imposed Steel and Aluminum Tariffs
Here's the revised article:
Feeling secure about President Trump's aluminum and steel tariffs not affecting you? Think again. These new tariffs could still hit your wallet hard, even if you're not directly purchasing raw metals.
From the cans for your daily food and drinks, to the cars you drive, and countless other consumer items, steel and aluminum are ubiquitous. And much of this steel and aluminum is imported, meaning companies might pass on the cost of tariffs to us, the consumers.
Although CEOs haven't released specifics on the impact of these tariffs on their cost structures and prices, several have already issued warnings of impending price hikes.
Food Essentials
Campbell's Company CEO Mick Beekhuizen disclosed that the food and beverage manufacturer imports steel from Canada to create cans. He cautioned that if these tariffs persist, they might need to reassess pricing for some products.
On the other hand, Coca-Cola CEO James Quincey suggested moving towards using more plastic and glass for packaging to avoid higher costs associated with aluminum, should the tariffs come into effect. However, he noted that the impact might not be drastic, as a 25% hike in aluminum price might not radically change a multi-billion-dollar business in the US.
Automobiles
While cars may initially be shielded from the tariffs due to multi-year contracts for steel and aluminum sourcing, they are still vulnerable to market spikes in commodity prices caused by the tariffs. For instance, General Motors has a large amount of its steel sourced from the US, but is subject to increases in costs due to market spikes.
Appliances
Appliances, such as refrigerators, HVAC systems, washing machines, and dryers, contain significant amounts of steel and aluminum. Whirlpool, a major appliance manufacturer, has mostly locked-in contracts for raw materials like steel for a minimum of one year. Whirlpool reported experiencing price surges for raw materials when similar tariffs were imposed in 2018, leading to increased costs by $350 million.
Water
Even tap water could become more expensive due to the tariffs, as water filtration systems are commonly made with these metals. Water treatment companies, like Pentair, purchase large amounts of aluminum and steel from abroad. If these tariffs remain in place, water providers could pass along the cost increase to consumers by billing them higher rates.
In the end, while some industries may see temporary protection, consumers could face the brunt of these tariffs, as companies may pass on the increased costs in the form of higher prices for goods and services.
- The CEO of Campbell's Company, Mick Beekhuizen, warned that the company might need to reassess pricing for some products due to the tariffs on aluminum and steel, as they import steel from Canada for their can production.
- Coca-Cola's CEO, James Quincey, suggested moving towards using more plastic and glass for packaging to avoid higher costs associated with aluminum, should the tariffs come into effect, although he noted the impact might not be drastic on a multi-billion-dollar business in the US.
- Whirlpool, a major appliance manufacturer, has locked-in contracts for raw materials like steel for a minimum of one year, but experienced price surges for raw materials when similar tariffs were imposed in 2018, leading to increased costs by $350 million.
