One year after Trump's steel and aluminum tariffs, industries see mixed results and higher consumer costs
While many of President Trump’s most sweeping tariffs were recently struck down by the Supreme Court, the ones levied against steel and aluminum remain intact. One year later, the tariffs continue to impact the industry and the businesses that rely on it.
Trump initially imposed a 25% tariff on foreign aluminum, copper, lumber, and steel, later doubling the rate for steel and aluminum.
"I have also imposed a 25-percent tariff on foreign aluminum, copper, lumber, and steel," Trump previously said.
"We’re going to bring it from 25 percent to 50 percent," Trump later added.
RELATED STORY | Trump increases tariffs on steel and aluminum, which will likely increase consumer prices
Many in the industry say the higher tariffs have helped them by driving up the price of foreign-made metals and pushing manufacturers to buy domestically.
Kevin Dempsey, president and CEO of the American Iron and Steel Institute, noted the benefits to domestic producers.
"The impact has been very positive for the industry. We've seen imports of steel decline," Dempsey said.
"Those imports have gone down about 12.5% over last year, and that's allowed the U.S. industry to increase production and increase sales of domestically produced steel," Dempsey said.
Steel shipments were up nearly 5% last year compared to 2024.
But for many businesses and consumers that use steel and aluminum, the tariffs have meant higher costs. In many cases, that is being passed on to consumers.
Scott Breen, president of the Can Manufacturers Institute, which represents can makers and their suppliers, pointed out challenges predicted by many economists. Tariffs can help domestic producers, but they drive up costs for industries and consumers who need those materials.
"These tariffs on aluminum and steel have added a significant cost that can makers, farmers, food producers, consumers need to absorb," Breen said.
According to the latest Producer Price Index report released Wednesday, the price of domestic steel mill products was up more than 20% from a year ago, and aluminum was up nearly 40%.
RELATED STORY | Trump says inflation is 'defeated' and the Fed has cut rates, yet prices remain too high for many
"Unfortunately, with these tariffs, it's a cost that has to be absorbed, and it gets passed along the value chain, oftentimes ultimately to that consumer," Breen said.
Despite soaring material costs, the price of a new car has gone up just about 2% from a year ago, according to Cox Automotive. That adds about $1,000 to the sticker price.
There are two reasons for this: parts like steel and aluminum are just a small part of what goes into a car, and some automakers said they will absorb some of the price increases instead of passing them onto consumers.
