The Trump administration on Tuesday announced that the 50% aluminum tariff President Donald Trump instituted will now apply to 400 more product categories, a move that will almost certainly raise prices for American consumers who are desperate for a reprieve.
“Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention—supporting the continued revitalization of the American steel and aluminum industries,” Under Secretary of Commerce for Industry and Security Jeffrey Kessler said in a news release. “This is the latest in a series of historic steps by the Trump Administration to strengthen America’s steel and aluminum industry.”
While the Trump administration is trying to paint this as a win, it will almost certainly be a loser for consumers, who will end up paying for the tariffs by way of higher prices.
The expanded 50% aluminum tariffs will now apply to everything from deodorant to strollers to farm equipment to auto parts, CNN reported.
“Basically, if it’s shiny, metallic, or remotely related to steel or aluminum, it’s probably on the list,” Brian Baldwin, vice president of customs at Kuehne + Nagel International AG wrote in a post on LinkedIn, adding “That 50% duty is going to hit hard—budget forecasts, brace yourselves.”
For example, tractors imported from abroad will now be hit with 50% tariffs. That will raise the operating costs for farms, likely increasing the price of produce—which already spiked nearly 39% in July.
The tariffs will also impact trucking equipment. And that could raise the price of everything we purchase, as trucks carry the goods we buy across the country—whether to stores or warehouses.
“By my count, the steel and aluminum tariffs now affect at least $320 billion of imports based on 2024′s general customs value of imports,” Jason Miller, a professor of supply chain management at Michigan State University, wrote in a post on LinkedIn.
Even before this new nonsensical tariff, Trump’s trade policy had already hit wholesale prices in July, which rose faster than economists predicted.
So far, companies have been eating those price increases for the moment, muting the impact of tariffs on consumers. However, economists say that can’t go on much longer.
“The Producer Price Index is running a bit too hot,” University of Michigan economics professor Justin Wolfers wrote in a post on X, referring to the government’s measure of wholesale prices. “Firms can smooth rising costs by trimming margins, but not for long—especially with tariffs about to lift costs again. Next act: how much gets passed through to the prices you and I pay, and how long will it take?”
Related | Trump’s tariffs hit his blue-collar backers where it hurts
Indeed, major companies that had held off on price increases are now reversing course, with Home Depot announcing this week that it will start to pass costs down to consumers.
“For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,” Home Depot CFO Richard McPhail told the Wall Street Journal. “So as you would expect, there will be modest price movement in some categories, but it won’t be broad based.”
In sum, it’s going to be an ugly holiday shopping season in the United States, as consumers face inflated prices. And Trump will be 100% to blame.
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