Dee-Ann Durbin and Anne d’Hynenzio, Associated Press
Steel and aluminum are ubiquitous in American life. The stainless steel refrigerator holds an aluminum soda can. Stainless steel drums fall into the aluminum washing machine. They are metals used in cars, planes, mobile phones, frying pans, skyscrapers and zippers.
So, President Donald Trump’s 25% tariff on all steel and aluminum imports came into effect Wednesday, but could have a widespread impact on manufacturers and consumers.
Some of the industries and products that rely on aluminum and steel are:
construction
According to the Foreign Relations Council, the construction industry uses about a third of US steel shipments than any other industry. According to related builders and contractors, a trading group with over 23,000 members, the industry relies on a global supply chain to build everything from airports to schools.
The group says some contractors were able to lock in steel or aluminum prices prior to customs duties. But if they are long-term, import taxes will ultimately raise prices when the construction industry is already struggling with higher costs of labor and materials. Uncertainty about tariffs reduces the likelihood that businesses will commit to large-scale construction projects, the group said.
Annie Messias Murphy is co-owner and president of JA&M, a contractor for commercial buildings based in Pembroke Pines, Florida. Some of the main materials her company uses are reinforced steel, or reinforced steel, and post-tension cables, which reinforce the concrete after it is poured.
“We are trying to lock in prices ahead of tariffs and work with our trading partners and clients on a variety of strategies,” Mecias-Murphy said. “However, ultimately, rising costs make it difficult for small business owners like me to reflect on large multi-year projects.”
Steel can
Tin mill steel is used in a variety of packaging, from soup cans to hairspray. According to the CAN Manufacturers Institute, the US currently imports 70% of tin mill steel.
The Institute said nine tin mill lines were closed in the US as more limited tariffs Trump imposed in 2018 moved manufacturers to or simply shut down. As a result, only three US tin steel wires remain open.
Mick Beekhuizen, president and CEO of Campbell Co., said last week in a revenue call that his company is importing Tin Mill Steel from Canada. Beekhuizen said Campbell is working with suppliers to reduce the impact of tariffs, but it may need to raise prices.
The Consumer Brands Association, which represents packaged food makers, said it is urging the Trump administration to exempt aluminum and steel products that are not available in sufficient quantities in the United States.
“We’re excited to announce that Tom Madrekki, Vice President of Supply Chain Resilience at the Consumer Brands Association,” said:
Auto
Most of the steel and aluminum from Ford, GM and Stellantis are already from the US, reducing the direct impact that businesses feel from higher obligations.
However, experts warn that tariffs may mean that three Detroit automakers will need to raise prices. Domestic steel and aluminum producers must increase their ability to meet demand, or shortages in the near future, make these products more expensive and increase the cost of their vehicles.
Another car manufacturer that can feel the pain of customs: Elon Musk’s Tesla. During the revenue call in January, Tesla’s Chief Financial Officer Vaibhav Taneja focused on uncertainty around tariffs.
“The imposition of tariffs is highly likely… to affect our business and profitability,” Taneja said.
This can be harmful to American car buyers who are already sensitive to inflation. According to the Kelley Blue Book, the average trading price for the new vehicle was just over $48,000 last month.
And, like Trump’s first term of steel and aluminum tariffs, automakers may have to revisit this year’s financial outlook under the guise of impact.
Appliances
Manufacturers and sellers of products ranging from microwaves to dishwashers need to navigate the increased costs.
Something like Whirlpool, which produces 80% of what is sold in the US domestically, appears to be more isolated from customs duties. A Whirlpool executive told analysts at an investor meeting earlier this month that Whirlpool has a minimum one year contract for most raw materials, including steel.
“We’re in a pretty good position as we are now,” says Roxanne Warner, senior vice president and controller at Whirlpool.
However, ABT, a family-owned home appliance and appliance store in Glenview, Illinois, received a notification from the manufacturer this week. It said it would try to raise the proposed retail price of countertop products such as espresso makers and toasters from April 1st to 10% to 15%.
ABT sells coffee makers ranging from $100 to $500 and espresso makers priced between $1,000 and $5,000.
Palmelo said there would be plenty to put another $250 at the $2,500 price, but she said she didn’t think sales would suffer much.
“I think customers will still buy it because it’s good quality,” she said. “But they might think about it. They might take some time to buy it. It may not be an impulsive purchase. I don’t think they’re going to go to Mr. Coffee or a $20 coffee maker.”
According to the academic journal American Economic Review, Trump’s first term saw tariffs flatten in washing machines in the beginning of 2018, increasing the prices of appliances by 12%. Clothing dryers are also more expensive, even if they weren’t targeted. Median washer and dryer prices rose about $86 and $92 per unit, respectively, according to the Academic Journal.
Aluminum can
According to the CAN Manufacturers Institute, US beverage companies use more than 100 billion aluminum cans each year. Most of the thin, round sheets of aluminum alloy used in the cans are made in the US, but manufacturers import a small percentage, the lab said.
The Brewers Association, representing 9,500 independent US craft beer makers, estimates that 10% of US cans are made from Canadian aluminum. The aluminum tariffs will force small brewers to pay more for cans, the association said.
However, not all manufacturers are worried about aluminum tariffs. Molson Coors says it has changed production in recent years and is now gaining “almost everything” of aluminum for US consumption from US sources.
Coca-Cola Chairman and CEO James Quincey said in a recent revenue call that if aluminum cans become more expensive, cola could move to other materials like plastic bottles. Quincy told investors he didn’t want to exaggerate the cost of aluminum tariffs.
“We should not conclude that this is a major swing factor in American businesses,” he said. “It’s a cost. You need to manage it. It’s better not to have it related to US business, but we’re trying to manage our way.”
Aviation
Airplanes have a mixture of metal parts, from aluminum frames, wings and door panels to steel landing gear and engine parts. Many are highly specialized and sourced from overseas.
The Aerospace Industry Association, which represents around 300 aerospace and defense companies, says tariffs have put industry and national security at risk.
“We are concerned about the additional downward pressure on the American supply chain that has already been highlighted,” said Duck Hardwick, the association’s vice president of international affairs. “We are investigating mitigation strategies that minimize the impact of new tariffs on our industry. We would like to work with the Trump administration to highlight the important role we play in America’s economic prosperity, defense and deterrence.”
Reported by Alexa St. John, AP Climate Reporter in Detroit.
Original release: March 12, 2025 6:09 PM EDT
