President Donald Trump’s doubling of tariffs on foreign steel and aluminum could hit Americans in the unexpected place, a grocery aisle.
Announcing an astonishing 50% collection on FridayThese imports were afraid that high-value purchases from cars to washing machines and homes could rise significantly. However, these metals are so ubiquitous in packaging that they can punch into consumer products, from soups to nuts.
“The rise in grocery prices is part of the ripple effect,” says Usha Haley, trade and professor at Wichita State University.
It’s time for Trump to return to the White HouseThere are unparalleled tariffsadded in a state where taxation is threatenedAnd it was often taken away,It’s hard to catch up with this whiplash-inducing frenzy. He argued that the latest tariff hikes were needed to secure more US steel industry.
But that promise could be at odds with his pledge to reduce food costs.
Grocery prices rise, Trump saidIt was one of the biggest reasons voters were shaken up.His way. Views around supermarkets reveal the number of products that could be affected by new taxes on steel and aluminum, ranging from beer and soda to cans of dog food, cans, fruits and tomato paste.
“It’s in the hands of canned food producers in China and other foreign countries. This is delighted to undercut American farmers and food producers. “Doubling the tariff on steel will further increase the cost of canned food at grocery stores.”
According to Budway, production by domestic tin mill steel producers, where products are used in cans, has declined dramatically in recent years, making it a manufacturer that relies on imported materials. When those prices go up, he says, “The cost is placed on millions of American families.”
The food company had already been carefully assessing the administration’s tariffs before the latest hike that Trump said would come into effect Wednesday. Campbell Co., a staple food for millions of Americans, says it works to reduce the impact of tariffs, but could be forced to raise prices. The Conagra brand, which places everything from Reddi-Whik cans to cooking sprays like Pam on supermarket shelves, has similarly pointed to a shock to tariffs on steel and aluminum.
“Because there is no supply, we cannot obtain all the material from the US,” Conagra CFO David Marberger told a recent Goldman Sachs conference on Global Staples.
Beyond canned foods like tuna, chicken soup and cranberry sauce, economists have warned of the ripple effects of tariffs on many items. If there is a cost to build a store or buy a truck to boost food growth, the price of the product could continue.
Most Americans don’t buy tractors, but Babak Hafej, who runs a global consulting firm and teaches international business at American universities, says the surge in prices for such expensive items, essential to food production, will ripple over all other types of items.
“If a John Deere Tractor costs 25% more, the consumer will pay that price,” Hafej says. “This will shrink the economy and affect all aspects of the economy. Some of the Trickling is immediate, others are slower to reveal themselves. But yes, prices will rise and choices will decrease.”
Trump appeared before a crowd of cheering steel workers to reveal new tariffs at rally outside Pittsburgh. In a statement, David McCall, president of United Steelworks International Union, called “a valuable tool in balancing scale,” but it requires “a wider reform of our global trading system.”
For example, measuring the weight of cans of chickpea and new car cans may be difficult, but consumers are likely to see countless indirect costs from taxation, says Andreas Waldkilch, a professor of economics at Colby University, teaches classes in international trade.
“Anyone who has a direct connection to the steel industry will benefit, and that’s coming at a very high cost,” Waldkirch says. “You might get some more steel jobs, but all of these indirect costs mean destroying the work elsewhere. Adding everything brings you to a pretty big negative loss.”
This story was originally featured on Fortune.com.
