Steel workers making final checks at the ArcelorMittal Dofasco steel plant in Hamilton, Ontario. — AP
STEEL and aluminium are everywhere – inside cars and airplanes, in skyscrapers and zippers, even in refrigerators and soda cans.
But with US President Donald Trump imposing tariffs on steel and aluminium imports, manufacturers and consumers alike are bracing for impact.
The construction industry, which uses about a third of all US steel shipments, is particularly vulnerable.
Builders rely on global supply chains for materials to construct everything from schools to roads.
While some contractors managed to lock in prices before the tariffs, a prolonged trade war could send costs soaring, straining an industry already dealing with expensive labour and materials.
“Rising costs make it difficult for small business owners like myself to contemplate large-scale multi-year projects,” said Annie Mecias-Murphy, co-owner of JA&M, a Florida-based contractor which heavily depends on steel products like rebar and post-tension cables.
Tin mill steel, a key material for canned goods and aerosol sprays, is mostly imported – about 70% comes from abroad.
The Can Manufacturers Institute warns that tariffs could push more US tin mills out of business, reducing domestic supply even further.
Campbell Soup CEO Mick Beekhuizen said the company is working with suppliers to manage the price increases, but it may need to raise product prices.
The Consumer Brands Association has urged the administration to exempt steel and aluminium products that aren’t readily available in the US, fearing higher grocery costs for consumers.
Most of the steel and aluminium used by US car giants Ford, GM, and Stellantis comes from domestic sources, shielding them from immediate price hikes.
However, experts say tariffs could still push vehicle prices higher if domestic supply struggles to meet demand.
Tesla, which relies more heavily on imported metals, is particularly exposed.
“The imposition of tariffs will have an impact on our business and profitability,” Tesla CFO Vaibhav Taneja warned during a recent earnings call.
With the average price of a new car already hovering at over US$48,000 (RM214,643), any further increases could hit consumers hard.
Companies that make and sell home appliances – from microwaves to washing machines – are weighing how to absorb cost increases.
Whirlpool, which manufactures 80% of its products in the US, has contracts that lock in steel prices for at least a year.
However, smaller retailers like Abt, a family-run electronics store in Illinois, have already received manufacturer notices about upcoming price hikes.
“Some products, like coffee makers and toasters, will see increases of 10% to 15%,” said Richie Palmero, Abt’s small appliance buyer.
He predicts customers might hesitate before splurging on high-end items.
“They might take longer to buy it. It might not be an impulse buy anymore,” he said.
The Retail Industry Leaders Association has compiled a list of everyday household goods that could see sharp price hikes due to stacked tariffs – ranging from ladders and mixing bowls to paper towel holders and chicken coops.
It estimates that some imports could face duties of up to 75%.
“Stacking tariffs on household goods will also raise costs for American families, millions of whom have struggled through the worst inflation in 40 years,” said Michael Hanson, a senior vice-president at the association.
The US beverage industry uses more than 100 billion aluminium cans annually, and while most aluminium sheets are produced domestically, a small percentage is imported.
The Brewers Association, which represents 9,500 independent US craft brewers, estimates that 10% of all cans come from Canada.
Tariffs could drive up packaging costs, affecting small breweries the most.
Steel tariffs are also causing concerns for beer makers, who need metal for kegs and fermentation tanks.
Yet, some companies, like Molson Coors, say they are now sourcing almost all of their aluminium domestically and won’t be significantly affected.
Coca-Cola CEO James Quincey downplayed the issue, stating that if prices of aluminium cans rise, the company could pivot to plastic bottles.
“It’s a cost, but it’s manageable,” he said. “It would be better not to have it, but we will find a way through.”
The aerospace industry also stands to suffer from tariffs, as aeroplane components – from aluminium fuselages to steel landing gear – are often sourced internationally.
The Aerospace Industries Association, representing nearly 300 aerospace and defence companies, has warned that tariffs could put national security at risk.
“We’re already dealing with supply chain pressures, and additional tariffs will only make it worse,” said Dak Hardwick, the association’s vice-president of international affairs.
He added that the group is exploring strategies to minimise disruption and hopes to engage with the administration on policy solutions. — AP
