Businesses brace for impact as tariffs rise to 50%

US businesses are scrambling to adapt after President Donald Trump doubled tariffs on imported steel and aluminum to 50%. The levies went into effect yesterday.

Companies that rely heavily on foreign metals—especially those without viable domestic alternatives—are now reassessing their pricing, production, and hiring practices.

Rising costs hit manufacturers hard
Independent Can, a 96-year-old Maryland-based tin manufacturer that supplies metal packaging for major brands like Smucker's and Conagra, sources about 75% of its metal from abroad.

The company has raised prices, delayed machinery upgrades, and warned customers of additional hikes.

Smaller companies, such as Heritage Steel in Tennessee, claim they can’t find viable US suppliers and are facing growing uncertainty. 

In 2024, the US imported 26.2 million metric tons of steel, which was over three times its exports.

Economic uncertainty looms
Economists say the impact could ripple across industries—from autos to construction. A $2,000 to $4,000 increase in vehicle prices is expected.

Critics note that Trump’s 2018 tariffs added 1,000 steel jobs but also contributed to the loss of 75,000 manufacturing jobs nationwide.

Several firms are delaying investments, freezing hiring, and warning that the unpredictable tariff environment poses a threat to economic growth and job stability.