The goods facing higher prices from US metal tariffs happymamay

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

The new tariff measures announced by President Donald Trump, American companies that want to bring minerals to the country to pay more.

But there is a risk that companies pass the additional costs, or part of it, for consumers.

Since the steel and aluminum are the main components in many commodities, what are the elements that can become more expensive?

About 70 % of the steel used in the United States is imported for food cans today, as it comes from countries such as Germany, the Netherlands and Canada, according to the Can Manufacturers Institute (CMI), a business group representing cans.

After Trump ordered the definitions of steel in 2018, many box makers “with exceptions” of these import taxes won the objections of steel makers, given the limited production of the type of steel used to make boxes in the United States.

Since then, steel manufacturers have more reduced production, raised prices, and CMI, who sent a message to the Trump administration earlier this month that large food companies signed including General Mills, Del Monte and Joya.

Robert Bodowe, President of CMI, said without the Cannes exemptions to manufacture to import steel -free steel tariffs, and can likely increase the prices of canned groceries in the United States.

“While the president may believe that these definitions protect the steel industry, they definitely undermine our food security and the elasticity of our offer for American canned foods, which Americans depend on every day,” said Mr. Budway.

When it comes to aluminum, beer manufacturers and soft drinks, such as Coca-Cola, they also warned that the step will add costs and may lead to high customer prices.

“We control enough variables that we can adapt and dilute through what is happening,” James Quincy, CEO of Coca-Cola told investors this week.

Trump said that there will be no exemptions from the bases in a timely manner for individual products or for certain countries, but some sectors hope to return from this position.

After Trump imposed a tariff on steel and aluminum during his first term, car makers, including Ford and Gres Motors, warned that the measures would add about one billion dollars to each of their costs.

For customers, Mooringstar estimated that the costs of customs tariffs will lead to approximately 1 %, or an increase in the price of $ 300 to customers.

David Weston, an analyst at Morningstar, warned that Ford might face a similar increase in the cost this time, but he said it is unclear how consumers will be affected.

The pressure of the ability to afford costs in the market can be limited to the 2019 levels after the amount of costs that companies choose to transfer, according to Michael Wall, the S&P MOBILITY.

But he said that it is still a “realistic” to expect some costs of a metal tariff to abandon buyers.

However, he pointed out that Trump’s announcement of the customs tariff on all the goods imported from Canada and Mexico, is currently hanging until March, will have a much greater effect for buyers.

At a business conference, Jim Farley, CEO of Ford Jim Farley, warned that Trump’s recent movements caused “a lot of cost and a lot of chaos” to make him.

The economists in TD estimated that cars may rise in the price by about 3000 dollars if the comprehensive definitions of the goods entered from Mexico and Canada into effect.

The construction industry is one of the largest steel users, which developers need and building houses to everything from construction tires to devices.

Karl Harris, head of the National Association for Home Buildings, said that the decision to impose a tariff on steel and aluminum was “completely anti -” of Trump’s declared goal of making housing more expensive, and warning that it would raise costs, deter development and rebuilding.

“In the end, consumers will pay the price of these definitions in the form of high prices of homes,” and warned.

The National Association of House Buildings urged the main to exempt building materials from the proposed definitions.

After Trump imposed a steel tariff in 2018, the Whirllpool maker faced an unexpected leap of $ 350 million in costs that he said was driven by jumping at steel prices.

Corporates are likely to pass unable to absorb such costs by high prices in stores.