Page 15 - AHATA
P. 15
A2 U.s. news
Monday 2 June 2025
Spike in steel tariffs could imperil Trump promise of lower grocery
prices
By MATT SEDENSKY prices go up, he says, “the
AP National Writer cost is levied upon millions
NEW YORK (AP) — President of American families.”
Donald Trump’s doubling of Food companies were al-
tariffs on foreign steel and ready warily assessing the
aluminum could hit Ameri- administration’s tariffs be-
cans in an unexpected fore the latest hike, which
place: grocery aisles. Trump said would go into
The announcement Friday effect on Wednesday. The
of a staggering 50% levy on Campbell Co., whose soup
those imports stoked fear cans are a staple for mil-
that big-ticket purchases lions of Americans, has said
from cars to washing ma- it was working to mitigate
chines to houses could see the impact of tariffs but
major price increases. But may be forced to raise pric-
those metals are so ubiqui- es. ConAgra Brands, which
tous in packaging, they’re puts everything from cans
likely to pack a punch of Reddi-Whip to cooking
across consumer products sprays like Pam on super-
from soup to nuts. President Donald Trump walks with workers as he tours U.S. Steel Corporation’s Mon Valley Works- market shelves, likewise has
“Rising grocery prices Irvin plant, Friday, May 30, 2025, in West Mifflin, Pa. pointed to the impact steel
would be part of the ripple Associated Press and aluminum tariffs have.
effects,” says Usha Haley, University, who added that strain ties with allies “with- Trump’s return to the White “We can’t get all of our
an expert on trade and the tariffs could raise costs out aiding a long-term U.S. House has come with an materials from the US be-
professor at Wichita State across industries and further manufacturing revival.” unrivaled barrage of tar- cause there’s no supply,”
iffs, with levies threatened, ConAgra CFO David Mar-
added and, often, taken berger said at a recent
away, in such a whiplash- Goldman Sachs confer-
inducing frenzy it’s hard to ence on global staples.
keep up. He insisted the lat- Beyond the obvious prod-
est tariff hike was necessary ucts — canned foods like
to “even further secure the tuna, chicken broth and
steel industry in the U.S.” cranberry sauce — econo-
That promise, though, mists warn of a spillover ef-
could be at odds with his fect that tariffs can have
pledge to reduce food on a gamut of items. If the
costs. cost to build a store or buy
Rising grocery prices, a truck to haul food rise,
Trump has said, were the prices of products may
among the biggest rea- follow.
sons voters swung his way. Most Americans will never
A look around a supermar- buy a tractor, but Babak
ket makes clear how many Hafezi, who runs a global
products could be impact- consulting firm and teach-
ed by new taxes on steel es international business at
and aluminum, from beer American University, says a
and soda to dog food to price spike in such a big-
can after can of beans, ticket item vital to food
fruit, tomato paste and production will spill down to
more. all sorts of other items.
“It plays into the hands of “If a John Deere tractor
China and other foreign costs 25% more, consum-
canned food producers, ers pay the price for that,”
which are more than hap- Hafezi says. “This trickles
py to undercut American down the economy and
farmers and food produc- impacts every aspect of
ers,” insists Can Manufac- the economy. Some of the
turers Institute president trickling is immediate and
Robert Budway. “Doubling others are slower to mani-
the steel tariff will further in- fest themselves. But yes,
crease the cost of canned prices will increase and
goods at the grocery choices will decrease.”
store.” Trump appeared before a
Budway says production crowd of cheering steel-
by domestic tin mill steel workers to unveil the new
producers, whose products tariffs at a rally outside Pitts-
are used in cans, have dra- burgh. q
matically decreased in re-
cent years, making manu-
facturers reliant on import-
ed materials.When those
