Refrigerators, beer, and bicycles are at risk of higher prices due to steel and aluminium tariffs announced by President Donald Trump this week. Experts predict that the new tariffs will increase the cost of steel, which carmakers rely on, leading to higher vehicle prices as manufacturers pass on these additional costs to consumers.
Ford CEO Jim Farley acknowledged the “cost and chaos” caused by potential tariffs, while Bill Hanvey, president of the Auto Care Association, criticized the tariffs for disrupting the supply chain of specialty steel products.
Aluminium tariffs could also raise prices for beverages packaged in cans, including beer and soda. The U.S. beverage industry already experienced a $1.7 billion increase in costs between 2018 and 2022 due to previous aluminium tariffs. The Beer Institute warned that small breweries and consumers will bear the cost of higher prices.
Home appliances, such as refrigerators and washing machines, which rely on steel, may also become more expensive. Prices for major appliances already rose by 5% to 10% between June 2018 and April 2019 due to previous tariffs.
Bicycles, which use steel and aluminium in their frames and components, are also expected to see price hikes. The People For Bikes trade organization expressed concern about the impact of tariffs on Canadian, Mexican, and Chinese goods.
The tariffs, which take effect next month, impose a 25% tax on foreign steel and aluminium. Trade experts predict that the price increases could be felt within three months to a year. Despite the potential impact on consumers, the White House believes the policy will boost the economy by supporting American industries and workers.
