On Feb. 9, President Donald Trump signed a 25% tariff on all steel and aluminum imports. Trump supported the tariff anticipating it would aid the steel and aluminum imports and the U.S. economy overall. What makes this tariff unique is its no-exemption rule and inflexible standards on the metals. These two qualities were included to improve the effectiveness of tariffs by preventing countries from finding ways to avoid the policies.
Instead, the tariff may make steel and aluminum more expensive. The negative reaction from the stock market after its announcement is evidence of this. But how will this Tariff affect us? What items could we possibly see a price change in?
- Your go-to water bottle
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The trendiest cups, Stanley Tumblers and Owala Freesips contain large amounts of steel. The main body of a Stanley is stainless steel. An Owala is described on their website as “a stainless steel cup.” Already costing anywhere from $20 to $60, there may be a price increase with the rise of steel prices. Be sure to take care of your water bottle to avoid buying a new, higher-priced bottle.
- your daily fun drink
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Energy drinks such as Alani Nu’s, Monster Energy, Celcius, and 90% of the other energy drinks on the market are sold in aluminum cans. Along with energy drinks, sodas will likely be hit by the new tariff. A vast majority, around 95% of soft drinks are made in aluminum cans. So, the packaging for these drinks will cost companies more to produce. Aluminum is the most environmentally friendly way to package drinks leading to concerns on the tariffs’ effect on the soft drink industry’s ecological impact.Â
- your next vacation
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Most airplanes are made of aluminum. Few metals are as lightweight and durable as aluminum making it the perfect material to build planes. Titanium can be used as a replacement for aluminum but is significantly more expensive. With aluminum prices possibly rising and titanium already being costly the price to build a plane is expected to rise. This would lead to a price increase in plane tickets.
- your future iPhone upgrade
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According to Apple iPhones are made mostly of metal, including steel and aluminum. That could lead to a price increase for the product. On top of that, a lot of the pieces used in phones from any company are supplied to the U.S. by China. In the past, China has reacted to one of Trump’s previous tariffs by creating one of its own, on many chips and metals. Some of which are used in making the phone or computer you are reading this on.
- your school’s new renovation
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It feels as if universities are always renovating and expanding. For this typically slow process to move as quickly as possible contractors need easily accessible, inexpensive materials. The tariff will make both less likely. It can be frustrating when your favorite parking lot is closed due to construction. Unfortunately, this may occur more often with the new tariff in place.
New policies and tariffs have come into place with the new president, and the confusing jargon can often lead to misunderstanding. While rising prices of water bottles may not seem serious the effects on larger industries such as the travel, electronic, and construction industries are. Therefore, knowing how new policies affect you is crucial in understanding our government and country.