On the 10th, U.S. President Donald Trump announced a 25% tariff on all imported steel and aluminum while canceling tariff exemptions and quota waivers for certain trade partners. This decision has sparked strong opposition from the international community.
In addition to global criticism, the 25% tariff on imported steel and aluminum has also triggered a wave of opposition within the U.S. In preparation for the policy set to take effect on March 12, many American businesses are rushing to increase their inventory or urgently adjusting their production strategies.
On the 11th, Jim Farley, CEO of Ford Motor Company, stated that imposing a 25% tariff on steel and aluminum would “significantly increase costs and cause immense disruption” in the U.S. auto industry. He warned that if the 25% tariff were applied to goods from Mexico and Canada, the consequences would be “devastating,” triggering an unprecedented shockwave across the American industrial sector. Some U.S. auto parts suppliers have indicated that they plan to pass the additional tariff costs onto automakers, which could ultimately lead to higher car prices.
On the same day, Coca-Cola CEO James Quincey stated that Trump’s aluminum tariffs would make aluminum cans imported from Canada more expensive. As a result, the company would be forced to either purchase aluminum cans domestically at higher prices or switch to plastic bottles as an alternative. Both options would drive up production costs, which would ultimately be passed on to American consumers. Similarly, the well-known perfume company Coty announced that it had increased its inventory of U.S.-sourced raw materials and was ramping up perfume production at its North Carolina facility.
Mark Zandi, Chief Economist at Moody’s Analytics, noted that business leaders would remain cautious, as the tariff hikes would have broader implications for the U.S. economy.
The CEO of the Northern Regional Chamber of Commerce, which serves major enterprises in New York State and southern Canada, reported that in recent weeks, after surveying over 40 regional manufacturers and warehouse operators under the chamber’s umbrella, they found that many were striving to stockpile goods to mitigate the cost increases expected once the tariff policy takes effect. Additionally, federal data shows that U.S. container shipping volume hit a record high in January this year, and cross-border truck shipments from Canada and Mexico to the U.S. have surged recently.
The chain reaction triggered by the tariff hike has also heightened consumer concerns. According to data from the University of Michigan, consumer confidence in February fell to its lowest level in seven months, while inflation expectations soared.
