Steel Tariff Surge Threatens Trump's Guarantee of Lower Grocery Prices Amid Rising Inflation

President Donald Trump’s decision to double tariffs on foreign steel and aluminum is poised to ripple far beyond traditional manufacturing sectors, threatening to drive up prices in an area close to home for most Americans: the grocery store. The new 50% levy on these critical imports, announced Friday, is raising concerns among experts and industry leaders that everyday staples packaged in metal — from soup and soda to canned vegetables and pet food — could soon cost more.

“Rising grocery prices would be part of the ripple effects,” explains Usha Haley, a trade expert and professor at Wichita State University. She warns that the tariffs have the potential to raise costs across multiple industries, while foreign allies bristle at the move. Importantly, Haley questions whether such aggressive tariff hikes will deliver the promised resurgence in American manufacturing jobs, especially as domestic producers still struggle to meet demand for specialized tin mill steel used in food packaging.

Despite President Trump’s insistence that the tariffs are necessary to shore up U.S. steelmakers, the move presents a paradox when set against his repeated pledges to curb rising food costs. For months, Trump has cited grocery inflation as a core concern for voters. However, with higher tariffs set to take effect Wednesday, supermarket shelves could soon reflect the increased burden — with products like beer, pet food, tomato paste, and hundreds of other canned items likely to see noticeable price hikes.

Industry stakeholders have been vocal about the looming impact. Robert Budway, president of the Can Manufacturers Institute, emphasizes that domestic production of tin mill steel has diminished in recent years, increasing reliance on imports now subject to much higher tariffs. “Doubling the steel tariff will further increase the cost of canned goods at the grocery store,” Budway warns. “The cost is levied upon millions of American families.”

Major food companies like Campbell Soup and ConAgra Brands are already signaling potential price increases. While both have publicly stated efforts to mitigate the tariffs’ effects, David Marberger, CFO at ConAgra, notes that limitations in domestic supply mean companies are often left with no choice but to source materials abroad — and pay the added tariff costs.

The consequences reach far beyond the canned goods aisle. Economists caution that higher steel and aluminum costs will likely have a domino effect, making it more expensive to build stores, manufacture delivery trucks, and produce equipment foundational to the food supply chain. Babak Hafezi, an international business consultant and educator at American University, points out that even price increases on farm equipment like tractors are ultimately passed down to consumers. "If a John Deere tractor costs 25% more, consumers pay the price,” Hafezi observes. “This trickles down the economy and impacts every aspect.”

Trump’s announcement, delivered before an enthusiastic crowd of steelworkers outside Pittsburgh, was met with support from labor leaders like David McCall, president of the United Steelworkers International union. Yet, even within supportive circles, there’s acknowledgement that “wider reforms of our global trading system" are needed for sustained growth.

For American consumers, the true cost of the new tariffs may not be immediately evident at the checkout counter, but experts agree that the indirect economic effects are likely to add up swiftly. “You may get a few more steel jobs,” says Colby College economics professor Andreas Waldkirch, “but all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.”