New York (AP) – The doubling of President Donald Trump’s prices on foreign steel and aluminum could strike the Americans in an unexpected place: the alleys of the grocery store.
THE Announcement of an astonishing tax of 50% Friday On these imports, the fear of the fear that the purchases of large tickets from cars to washing machines to houses could see major price increases. But these metals are so omnipresent in the packaging, they are likely to punch the consumption products of the nut soup.
“The rise in grocery prices would be part of the effects of undulations,” said Usha Haley, trade expert and professor at Wichita State University, who added that prices could increase costs between industries and additional links with allies “without helping a long -term American renewal”.
Trump’s return to the White House came with an unrivaled tariff damwith threatened samples, added And, often, removed, In such a frenzy inducing the cervical boost, it is difficult to follow. He insisted that the last price hike was necessary to “further secure the steel industry in the United States”
This promise, however, could be in contradiction with its commitment to reducing food costs.
Price of grocery prices, said Trump, were among the biggest reasons why voters have left His way. A look around a supermarket clearly indicates how many products could be affected by new taxes on steel and aluminum, beer and soda to dog food in the box after the box of beans, fruit, tomato paste and more.
“He plays in the hands of China and other producers of foreign preserves, who are more than happy to undermine American farmers and food producers,” insists that the president of the manufacturers Robert Budway, the manufacturers. “The doubling of the steel rate will further increase the cost of canned grocery stores.”
Budway claims that the production of domestic tin -in -mill steel producers, whose products are used in cans, have decreased considerably in recent years, which makes manufacturers dependent on imported materials. When these prices increase, he says, “The cost is deducted from millions of American families.”
Food companies already evaluated administration prices with distrust before the last hike, which, according to Trump, would come into force on Wednesday. Campbell Co., whose soup cans are a staple for millions of Americans, said it worked to mitigate the impact of prices, but could be forced to increase prices. The Conagra brands, which put everything, from Reddi-Whip cans to cooking sprays like PAM on the shelves of supermarkets, also indicated the impact that the prices of steel and aluminum have.
“We cannot get all our materials from the United States because there is no supply,” said Conagra’s financial director David Marberger at a recent Goldman Sachs conference on Global Staples.
Beyond obvious products – preserved foods such as tuna, chicken broth and cranberry sauce – economists warn against an overflow effect that prices can have on a range of items. If the cost of building a store or buying a truck to transport food, prices for products can follow.
Most Americans will never buy a tractor, but Babak Hafezi, who heads a global consulting company and teaches international affairs at the American university, indicates that a prize peak in such a large vital article for food production will affect all kinds of other articles.
“If a John Deere tractor costs 25% more, consumers pay the price,” said Hafezi. “It makes the economy lower and has an impact on all aspects of the economy. Part of the runoff is immediate and others are slower to manifest. But yes, prices will increase and choices will decrease. ”
Trump appeared in front of a crowd of acclaimed adirclers to reveal the new prices during a gathering outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International Union, called the prices “a precious tool to balance the scales”, but “wider reforms in our global trade system” are necessary.
It can be more difficult to assess the weight of prices, for example, a box of chickpeas compared to that of a new car, but consumers are likely to see a myriad of indirect costs of the withdrawals, explains Andreas Waldkirch, professor of economics at Colby College who teaches a class on international trade.
“Anyone who is directly connected to the steel industry, he will benefit. This comes at a very high cost,” explains Waldkirch. “You can get a few other steel jobs. But all of these indirect costs mean that you destroy jobs elsewhere. If you were to add this, you find a fairly large negative loss.”
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