2/13/2025–|Last update: 13/2/202510:52 AM (Mecca time)
The administration of US President Donald Trump has announced the imposition of 25% customs definitions on steel and aluminum imports, including all exporting countries including Canada, Mexico, Brazil, and European Union countries.
According to the BBC, this decision – which is expected to come into effect next month – comes after a series of controversial trade measures in an attempt to support US local production.
However, this policy carries great economic repercussions that may be reflected in American consumers through price increases that include a group of daily products.
The affected industries and the impact of definitions
- Canned food industry and soft drinks
The box industry in the United States relies heavily on imported steel, as 70% of the steel used in this industry is imported from countries such as Germany, the Netherlands and Canada, according to the CMI.
The head of the institute, Robert Bodway, pointed out that the new definitions may lead to a noticeable increase in the prices of canned food, which may put additional pressure on consumer budgets.
“These definitions may seem as a measure to protect the local steel industry, but in fact it undermines food security in the United States and affects the elasticity of supplies,” Bodowe said.
As for the manufacture of soft drinks, aluminum producers and beverage makers – such as Coca -Cola – warned that increasing the cost of imported aluminum may raise the prices of products.
Coca -Cola, James Quincy, confirmed that the company is working to reduce the effects of costs on customers, but he indicated the difficulty of overcoming this burden without a clear impact on prices.
- Auto
The auto industry is one of the most affected by the high price of steel and aluminum. During his first term, Trump imposed similar definitions, which led to increased production costs for companies such as Ford and Gerale Motors by about one billion dollars per company.
Analysts at the “Morning Star” company warned that the impact of the new tariffs may raise car prices by 1%, equivalent to $ 300 per car.
However, Michael Wall, an analyst at Standard & Poor Poor Global Mobilyte, indicated that companies may have difficulty passing all costs to consumers due to the weak demand in the auto market, which is not yet to the pre -Corona levels.
Jim Farley, CEO of Ford Company, commented on the impact of the definitions, saying, “The recent measures of the president caused great costs and chaos for the auto industry.”
- Building and housing sector
According to the BBC, the construction sector is considered one of the largest steel consumers in the United States, as it is used in buildings, home appliances and other components.
The President of the National Association for Home Brains, Karl Harris, confirmed that the new definitions stand in direct conflict with Trump’s goal to provide housing at reasonable prices.
Harris pointed out that “the imposition of definitions will lead to an increase in construction costs, and the developers are eager to invest in new projects, which makes homes less available and more expensive for consumers.”
Earlier, “Wrilbol” has informed an unexpected increase in its costs of $ 350 million, due to steel price increases, indicating that companies that cannot afford these costs will have to pass them to customers by increasing prices.
Wide repercussions
The new definitions are expected to lead to extensive effects on the American economy, as it will affect a group of industries that depend on imported minerals.
A report issued by TD Economics estimated that car prices may rise by 3 thousand dollars if comprehensive definitions are imposed on imports from Mexico and Canada.
Moreover, this decision raises concerns about its effect on inflation. With the high prices of raw materials and final products, American consumers may find themselves facing the high cost of living.
On the other hand, expectations indicate that American -based aluminum and steel companies may resort to reducing production or reducing employment, which may affect the local economy.
The heads of industrial associations, such as the National Association for Home Builders, called for the exemption of raw materials used in construction from the definitions, and they explained that the continuation of these policies may lead to slowdown in the construction sector, which is considered an essential pillar of the American economy.
In the same context, many companies expressed their hope that the American administration will retract these definitions, or at least to provide exceptions to some vital industries.
