Trump’s 50% tariffs on steel and aluminium spark fears of job losses and price hikes

Trump’s 50% tariffs on steel and aluminium spark fears of job losses and price hikes

Steel and aluminium tariffs in the United States have doubled to 50% since Wednesday, a move the Trump administration says is vital to protect national security and revive domestic industry. But for many American manufacturers that rely on imported metals, the new levies are sowing uncertainty, forcing price hikes, and threatening jobs across sectors from construction to cookware, the Washington Post reported.

President Donald Trump, announcing the decision Friday, said the higher tariffs would “reduce or eliminate the national security threat posed by imports” and make it harder for foreign competitors to undercut American companies. “At 25 percent, they can sort of get over that fence,” he told steelworkers in Pennsylvania. “At 50 percent, they can no longer get over that fence.”

Domestic industry says it’s hurting, not winning

Companies across the country say they’re struggling to source sufficient domestic metal and are being squeezed by higher costs. For Rick Huether, CEO of Independent Can near Baltimore, 75% of his company’s metal comes from abroad. The business, which makes tin packaging for Conagra, Smuckers and other food giants, has already raised prices once this year. Now, Huether says he’ll have to do it again.

“We’ve been telling customers: Here’s our price, and here’s our price with tariffs,” Huether said. “We’ve absorbed a fair amount of these costs, but we can’t absorb any more.”

Danny Henn of Heritage Steel in Tennessee echoed the concern. “In our ideal scenario, we would have a fully US-sourced supply chain, but we keep coming up empty,” he said.

From baby formula to cars, rising costs ripple out

Steel and aluminium are critical components in a wide range of products — including infant formula cans, dog treat containers, cookware, aircraft, and automobiles. With few domestic alternatives available, manufacturers are warning of major price increases and production slowdowns.

The US imports more steel than any other nation, with over 26 million metric tons brought in last year, primarily from Canada, Brazil and Mexico. By contrast, it exported only 8 million metric tons. While China provides little direct steel to the US, it dominates global production and pricing, making it a central target of Trump’s trade measures.

The automotive sector, already grappling with tariffs and supply chain shifts, may be hit especially hard. Steel comprises over half the weight of an average vehicle, and economists estimate the new tariffs could raise car prices by $2,000 to $4,000.

Ford CEO James Farley warned in February that even with 90% of its steel sourced domestically, Ford would feel the sting due to global pricing effects. “We’ll have to deal with it,” he said.

Job losses could outweigh gains

While Trump’s 2018 tariffs created roughly 1,000 jobs in steel production, economists say they contributed to a net loss of 75,000 jobs in manufacturing. A repeat of that dynamic is likely, said Gary Hufbauer, senior fellow at the Peterson Institute for International Economics. “You’re talking higher prices and lost jobs across the US manufacturing industry.”

Independent Can, a 96-year-old family-owned business, has already delayed machinery upgrades due to uncertainty. Huether recently secured a small contract with U.S. Steel — a rare win — but says the business environment remains chaotic.

“These tariffs have been very disruptive because we don’t know from one day to the next what the heck is going on,” he said. “We live and die on stability and predictability, and right now we have neither.”