If U.S. President Donald Trump goes ahead with sweeping tariffs on steel and aluminum imports, it could lower profits for companies making everything from pickup trucks to canned soup, or result in higher prices for consumers.
Trump has threatened a 25 percent tariff on steel imports and 10 percent on aluminum, without exemptions for any countries.
Analysts caution that the Trump administration’s plan lacks details, but say tariffs would hurt manufacturers.
“Domestic producers of steel would make more money, while domestic consumers of steel would make less money,” said Steve DuBuc, a director at consulting firm AlixPartners’ automotive and industrial practice, noting that U.S. steel makers will“have increased pricing power” as steel imports become more expensive.
U.S. automakers stand to be among the most impacted. The sector accounted for 26 percent of U.S. steel demand in 2017, behind the construction industry’s 40 percent, according to data provider Statista.
Appearing on CNBC on Friday, U.S. Commerce Secretary Wilbur Ross said tariffs would have a“trivial effect.” He said the one ton of steel used per vehicle, at $700 per ton (0.907 metric tonnes), would have little impact on vehicle costs.
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