US President Donald Trump's tariffs, which are expected to be implemented next month, are likely to cause tension not only in other countries' markets but also in the domestic market. Since most of the steel products used in the canned food, automotive and construction sectors are imported, prices are likely to rise and this increase in prices will be passed on to American consumers by American producers.
Robert Budway, President of the Can Manufacturers Institute (CMI), said that 70% of the steel used in can production is imported and that any increase in imported steel will further increase prices. In January 2025, food inflation in the US was 2.5%, the highest food inflation rate in a year. With a tax on steel, the CMI president pointed out that there could be an increase in food inflation, jeopardizing their own food security.
Similarly, in the automotive sector, Ford and General Motors said that the expected tariff would add 1 billion dollars to their expenses, which would be passed on to consumers in the form of higher car prices. TD Economics estimates that car prices could increase by around USD 3,000 if general tariffs on goods from Mexico and Canada go into effect.
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