American consumers could soon feel the pinch as new tariffs on steel and aluminum imports threaten to drive up prices for everyday goods – from sodas to sedans. The Biden administration’s proposed 25% levies, reminiscent of earlier trade policies under former President Donald Trump, have prompted sharp reactions from industry leaders.
Coca-Cola CEO James Quincey warned that higher metal costs might force 'difficult pricing decisions,' potentially disrupting a $237B global beverage market. Meanwhile, Ford’s leadership emphasized challenges in maintaining affordable electric vehicle production amid rising supply chain expenses, a critical hurdle as the auto sector races toward sustainability goals.
The tariffs come as G20 nations report a 15% year-over-year increase in trade protectionist measures. Analysts suggest companies may accelerate 'friend-shoring' strategies, relocating production to allied markets – a trend already reshaping manufacturing hubs from Mexico to Vietnam.
While some experts predict short-term consumer price hikes of 3-5%, others highlight potential long-term shifts: 'This accelerates the green transition paradoxically,' noted MIT trade economist Dr. Lisa Park. 'Manufacturers are being pushed to innovate with alternative materials faster.'
Reference(s):
cgtn.com
