10 Things That Will Be More Expensive Because of the Steel Tariff

When it comes to Donald Trump's trade policies, tariffs are nothing new. However, his second term as President of the United States has raised import duties to levels higher than ever.

After imposing a 25% tariff on imported steel in his first term, Trump doubled that to 50% in early June. With import duties that high, manufacturers who rely on steel for their products will likely have to pass the increased costs on to consumers. It may become even more challenging for Americans to achieve financial stability under these circumstances.

From the car you drive to the food in your pantry, here are ten things that will likely become more expensive, thanks to steel tariffs.

The U.S. auto industry is a significant consumer of both domestic and imported steel, so tariffs have a direct impact on production costs. Automotive industry analysts say a 50% tariff on imported steel could raise the price of a new vehicle by as much as $3,000, increasing the average cost of a new American car from around $48,000 to $51,000.

The cost of your favorite beer could be heading up. Nearly all the steel kegs used by American brewers are imported, with many originating from Germany.

Trump has also imposed a 50% tariff on imported aluminum, so you can also expect cans of beer to become more expensive, too.

A significant number of bicycles sold in the U.S. are manufactured overseas. Even those made domestically tend to use imported steel for their frames and other components.

Although the cost of bikes in stores hasn't seemed to have been affected yet, consumers can expect to see price increases of 10% to 30% on new bikes in the future.

American companies import approximately 80% of the steel used to manufacture cans for fruits, vegetables, soups, and other preserved foods. The Consumer Brands Association estimates that steel tariffs could lead to a price increase of 9% to 15% on these canned staples.

Stock your pantry now before prices go up.

The construction industry is a voracious consumer of steel, utilizing it for everything from structural beams and rebar to roofing and siding. You may want to put off building your dream home, but even adding a room to your current home or remodeling a kitchen or bathroom is going to cost a lot more.

The National Association of Home Builders states that steel tariffs could add $10,000 to the cost of a typical home renovation project.

You might not always see it, but steel is ubiquitous in home furnishings. Many types of furniture use steel components, ranging from bed frames to smaller parts such as drawer slides.

Domestic furniture manufacturers who rely on imported steel parts will face higher production costs, which are sure to be reflected in the final retail prices consumers pay.

Are your refrigerator, washing machine, and dryer in good shape? Let's hope so, because many essential household appliances are made of 50% steel by weight.

The Bureau of Labor Statistics already noted a 4.3% jump in the price of major household appliances in May 2025 compared to the previous month. Experts point to tariffs as a significant contributing factor.

Tractor manufacturers such as Caterpillar and John Deere rely on steel as a primary raw material for their agricultural equipment and other machinery.

The increased cost of steel will inevitably be factored into the final price of this equipment, which has the potential to affect everyone from farmers to construction companies.

America's network of pipelines, which transport oil and natural gas across the country, requires large quantities of specialized steel. These imports account for a substantial portion of the total cost of delivering oil and gas products to consumers.

When these expenses rise, you can expect your heating bills and gasoline prices to increase as well.

Shipping containers, which transport imported goods into the U.S., are primarily constructed from steel. This means shipping and logistics expenses for all imported goods will rise.

Ultimately, you can expect a price hike for many popular imports, including jewelry, tools, computers, toys, and furniture.

High tariffs on steel, aluminum, and other commonly used raw materials directly impact production costs for American manufacturers. While some companies will get creative and find innovative ways to minimize the impact on consumers, others will have no choice but to raise prices.

However, you can look at this situation as an opportunity. If you can afford to remodel your bathroom or buy the new car you've had your eye on, avoid wasting money and get ahead of the higher prices by making a purchase now.