Here’s Where Prices Could Rise Under Steel, Aluminum Tariffs

If you are planning to purchase a new home or car, President Donald Trump’s most recent tariff could increase the price tag.

On Monday, Trump announced a 25% tariff on steel and aluminum imports that will go into effect on March 12. The move could impact the price of items made from those materials, including houses, cars, and kitchen appliances.

Imports made up 23% of the U.S. steel market in 2024, according to the American Iron and Steel Institute. Imports make up an even greater share of the U.S. aluminum market, accounting for 44%, with half of those imports coming from Canada, according to a 2022 report by the Congressional Research Service (CRS).

The biggest users of steel include the construction industry, which consumes 47% of U.S. steel. The automotive industry accounts for another 25% of domestic steel use, according to the Tax Foundation. Likewise, the CRS found that transportation equipment, packaging, and construction were the primary usage of aluminum imports. 

Homes Could Get More Expensive

Since steel and aluminum are used in the building process, the National Association of Home Builders said that Trump’s tariff proposals could have an affect on the housing industry.

“Tariffs on building materials raise the cost of housing, and consumers end up paying for the tariffs in the form of higher home prices,” the NAHB said.

Construction isn’t the only industry that could feel the pinch of import taxes. Other products that rely on steel for their construction include household appliances, construction equipment, farm machinery, batteries and military vehicles, according to Econofact.

Cars Could Too

Automobile and automotive parts production is another industry that could face price hikes from the metal tariffs. At an automotive conference on Tuesday, Ford (F) Chief Executive Officer Jim Farley warned that the tariffs could have an outsized impact on automakers.

“What we’re seeing is a lot of cost, a lot of chaos,” Farley reportedly said.

Auto part makers also raised worries about the impact tariffs will have on an industry that depends on a stable supply of raw materials. 

“Many specialty steel products used in our industry are not readily available from domestic sources, making access to global supply chains essential. U.S. manufacturers are at a competitive disadvantage, making it more difficult to compete in both domestic and international markets.” said Bill Hanvey, president and CEO of Auto Care Association, which represents car part makers.

Less Obvious Costs Could Rise

Construction companies and car makers aren’t the only industries that could feel the pinch of import taxes. According to Econofact, other products that rely on steel for their construction include household appliances, construction equipment, farm machinery, batteries, and military vehicles.

The tariff could raise costs in smaller ways, too—like the cost of the can for your favorite soda.  When Trump first instituted tariffs on steel and aluminum imports in 2018, Coca-Cola said the import tax increased the costs of making its cans and led to higher consumer prices for its products.

And while Coca-Cola CEO James Quincey said Tuesday that the tariffs weren’t likely to have a big impact on can prices, the beverage giant may move to distributing more plastic bottles of soda when the import taxes take effect.