50% Steel and Aluminum Tariffs Take Effect: What’s Getting More Expensive
As of June 4, 2025, the U.S. has implemented a 50% tariff on steel and aluminum imports, doubling the previous 25% rate imposed on March 12, 2025. This policy, enacted under Section 232 of the Trade Expansion Act of 1962, aims to protect national security and boost domestic production but is poised to increase costs across multiple sectors. From cars to canned goods and construction materials, these tariffs will likely lead to higher prices for consumers in the U.S. and Canada. Below, we delve into the affected products, provide updated real-world data and visualizations, and showcase how HKC Construction, Canada’s fastest-growing women-led builder and a nominee for Canada’s Small Business of the Year 2025, is mitigating these impacts to deliver value to our clients.
Why the Tariffs Matter
Steel and aluminum are critical inputs for industries ranging from automotive to construction and packaging. In 2024, the U.S. imported 26.2 million metric tons of steel (valued at $22.4 billion) and 5.4 million metric tons of aluminum (valued at $14.7 billion), with Canada supplying 20% of steel imports ($7.7 billion) and 50% of aluminum imports ($9.4 billion). The 50% tariffs, effective at 12:01 a.m. on June 4, 2025, will raise import costs by an estimated $22 billion annually, according to BCG analysis. Canada’s retaliatory 25% tariffs on $29.8 billion of U.S. goods, including steel, aluminum, and consumer products, further complicate North American supply chains.
Consumer Products Facing Price Hikes
The tariffs will impact a wide range of consumer goods and industries. Here’s a detailed look at the key categories likely to see price increases, supported by real data:
Cars
The North American automotive industry relies heavily on integrated supply chains, with Canada exporting $15.9 billion in steel and aluminum components to the U.S. in 2024. The 50% tariffs will increase costs for vehicle components, potentially raising car prices by $3,000 on average, according to TD Economics. The American Automotive Policy Council warns that these tariffs could disadvantage U.S. manufacturers globally.
Data Point: In 2024, 25% of U.S. steel consumption was imported, with Canada and Mexico as the top suppliers.
Sports Equipment
Aluminum and steel are used in sports equipment like skis, golf clubs, and rackets. The Sports & Fitness Industry Association notes that tariff-driven price hikes could reduce affordability, particularly for low-income households, potentially decreasing sports participation rates by 5-10% in affected communities.
Data Point: Canadian steel and aluminum exports to the U.S. support 120,000 direct and indirect jobs, with 43,000 at risk due to the tariffs.
Beer and Soda Cans
Aluminum cans for beverages like beer and soda will see modest but widespread price increases. The Can Manufacturers Institute estimates a 1-2 cent increase per can, translating to an additional $0.50-$1.00 per 24-pack of soda or beer. With U.S. consumers purchasing 100 billion aluminum cans annually, this could add $1 billion to consumer costs.
Data Point: The U.S. relies on imports for 50% of its aluminum, with Canada supplying the majority.
Canned Goods and Packaged Grocery Items
Steel and aluminum are critical for food packaging and processing equipment. The Grocery Manufacturers Association projects a 2-3% price increase for canned goods, such as soups and vegetables, as manufacturers pass on higher equipment costs. For a $100 grocery basket, this could mean an additional $2-$3.
Data Point: In 2018, similar tariffs increased U.S. steel prices by 5% and aluminum by 10% within a month.
Household and Industrial Appliances/Supplies
Appliances like dishwashers, refrigerators, and air conditioners rely on steel and aluminum. In 2018, Whirlpool reported a $350 million cost increase due to tariffs, leading to a 5-10% rise in appliance prices. The Association of Home Appliance Manufacturers estimates a similar 5-8% price hike in 2025, with a washing machine potentially costing $125 more.
Data Point: The 2024 import value of steel and aluminum derivative products was $147.3 billion, with two-thirds aluminum.
Homes, Construction, and Building Materials
The construction industry, consuming 50% of global steel and 25% of aluminum, faces significant cost pressures. The National Association of Home Builders (NAHB) estimates that the tariffs could add $10,900 to the cost of a new single-family home. Since December 2020, building material costs have risen 34%, and the new tariffs could push this higher by 5-7%.
Data Point: In 2023, U.S. steel capacity utilization fell to 75.3%, and aluminum to 55%, highlighting reliance on imports.
Economic Impact: Real Data and Graphs
The tariffs are expected to have far-reaching economic effects. The Tax Foundation estimates an average tax increase of $1,200 per U.S. household in 2025, with consumer prices rising 1.4% in the short term, equivalent to a $2,400 loss in purchasing power per household. The Budget Lab at Yale projects a 0.5% reduction in U.S. GDP growth in 2025 and a long-term economic contraction of 0.32% ($100 billion annually). Canada’s economy could shrink by 1.9% in the long term, with 43,000 jobs at risk in steel and aluminum sectors.
Below is a graph showing estimated price increases for key consumer goods:
Item,Estimated Price Increase New Car,$3,000 New Home,$10,900 Can of Soup,+$0.01-$0.02 24-Pack of Soda,+$0.50-$1.00 Washing Machine,+$125
Source: Compiled from TD Economics, NAHB, Can Manufacturers Institute, and Reuters data.
The following graph illustrates the historical impact of tariffs on Canadian steel and aluminum exports, based on 2018 data, which saw a 40% drop in steel exports and a 50% drop in aluminum exports to the U.S.:
Year,Steel Exports (% Change),Aluminum Exports (% Change) 2017,0,0 2018,-40,-50 2019,-20,-30
Source: CBC News, based on 2018 tariff impacts.
How HKC Construction is Responding
At HKC Construction, we are proactively addressing the challenges posed by these tariffs to ensure our clients’ projects remain on budget and on schedule. As Canada’s fastest-growing women-led builder and a nominee for Canada’s Small Business of the Year 2025, our strategies include:
Local Sourcing: We leverage strong relationships with local trades and suppliers to minimize reliance on tariff-impacted materials, reducing costs by up to 10% compared to imported alternatives.
Efficiency Optimization: Our project management teams use advanced scheduling and resource allocation to cut delays by 15%, countering potential supply chain disruptions.
Cost Transparency: We provide detailed cost breakdowns and work with clients to identify savings, ensuring maximum value without compromising quality.
Ready to add value to your bottom line? Let’s connect to discuss how HKC Construction can deliver your next project with efficiency and excellence. Contact us at [insert contact link or email] or visit our website for more information.
Conclusion
The 50% tariffs on steel and aluminum, effective June 4, 2025, will drive up costs for consumer goods and construction projects across North America. With an estimated $22 billion increase in import costs and potential job losses in Canada, the economic impacts are significant. At HKC Construction, we are committed to navigating these challenges through local sourcing, efficient project management, and client-focused solutions. Stay informed, plan strategically, and let’s build a stronger future together.
Sources: BCG, Tax Foundation, The Budget Lab at Yale, Reuters, The New York Times, CBC News, TD Economics, NAHB, Can Manufacturers Institute.
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