American consumers could end up paying higher costs from President Donald Trump's vow to impose tariffs of 25% on imported steel and 10% on imported aluminum.
The plan, expected to be formalized with final details next week, could help U.S. steel and aluminum producers that have long complained about unfair competition from overseas.
Trump tweeted on Friday that a trade war with foreign steel and aluminum producers would be "easy to win."
However, it may not be so easy for American consumers. If implemented, steel and aluminum tariffs "will hurt domestic industrial manufacturers that rely on these commodities as key raw materials in production," said David Berge, Senior Vice President at Moody’s.
As a result, U.S. industry leaders say consumers could face higher costs for cars and trucks, beer and soft drinks, canned goods and more. "Make no mistake, this is a tax on American families," said Matthew Shay, the President and CEO of the National Retail Federation, a major trade group for the retail industry.
Here's a look at some of the potential impact:
Cars and Trucks
Trade restrictions and the higher prices they can trigger will "nullify" many benefits of the federal tax overhaul finalized in December by Trump and the Republican-controlled Congress, said John Bozzella, the President and CEO of the Association of Global Automakers.
An analysis of steel U.S. tariffs imposed in 2002 during the administration of President George W. Bush concluded the levies cost 200,000 jobs, including 30,000 in Michigan, Ohio and Pennsylvania alone, said Bozzella.
The financial impact on automotive parts and production is not yet known, but will likely be significant, the Center for Automotive Research said in a Friday report.
"American consumers would buy fewer vehicles if prices were to rise at a rate commensurate with materials cost share and the tariff impact," the report said.
Beer and Soft Drinks
MillerCoors tweeted that the company is selling a higher amount of its beers in aluminum cans and said the promised tariffs would cause aluminum prices to rise and "likely lead to job losses across the beer industry."
"We buy as much domestic can sheet aluminum as is available, however, there simply isn't enough supply to satisfy the demands of American beverage makers like us," the company also tweeted. "American workers and American consumers will suffer as a result of this misguided tariff."
Separately, Luis Felipe Pedreira Dutra, chief financial and technical officer of Anheuser-Busch InBev, told financial analysts that roughly 2 million jobs depend on the U.S. beer industry.
"We urge the Department of Commerce and U.S. President Trump to consider the impact of trade restriction tariffs," he said.
In an August letter to Trump, the Can Manufacturers Institute said tinplate steel constitutes roughly 60% of a can's cost and estimated that a tariff as low as 5% would trigger approximately $1 billion in annual costs.
"Given the industry's thin margins, manufacturers cannot absorb this cost and will be forced to pass it on to consumers," CMI officials wrote.
"A tariff on imported tinplate steel would stifle growth and could mean the loss of manufacturing jobs for thousands of American workers and their families," the letter added.
Overseas Trade Retaliation
Jean-Claude Juncker, president of the European Commission, said Friday that the tariffs appeared to represent a "blatant intervention" to protect the U.S. domestic industry and had no national security justification.
"We will not sit idly by while our industry is hit with unfair measures that put thousands of European jobs at risk," Juncker told reporters in Hamburg, Germany.
Mina Andreeva, the commission's deputy chief spokeswoman, tweeted that Harley-Davidson motorcycles, U.S. bourbon, Levi's jeans, and other American-made products could soon face European import duties.
Such action could put financial pressure on companies patronized by millions of U.S. consumers.
Sweden-based appliance maker Electrolux reportedly pushed the pause button on a planned U.S. investment after Trump announced the tariff plans.
The company on Friday said it would delay a $250 million modernization and expansion plan for its Springfield, Tenn. manufacturing plant, Reuters reported.
The company delayed the plans because it believes the tariffs could cause a significant increase in the price of steel on the U.S. market, the report said.
"This is not the possibility of tariffs directly impacting our costs, but rather the impact it could have on the market and that it could damage the overall competitiveness of our operations in the U.S.," Electrolux spokesman Daniel Frykholm said in the report.
Contributing: Nathan Bomey
Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc