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NJ to be hit by trump tariffs

They will affect everything from construction work to shopping

By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey

..... Unless President Donald Trump scales back or pivots on his plans, the United States will start imposing tariffs of up to 50% on steel and aluminum imported into the U.S. starting Wednesday. [03/12/2025]
..... In New Jersey, the new tariffs on metals would affect everything from construction projects to grocery shopping, manufacturing and pharmaceuticals, experts say.
..... And whether or not Trump pauses or outright scraps the tariffs at the eleventh hour is not without precedent, Last week, [03/04/2025] he announced yet another month-long pause on goods coming in from Canada and Mexico just a day after the tariffs went into effect.
..... Tariffs are essentially taxes on imports and economists generally agree that the cost gets passed onto consumers, resulting in a slower economy.
..... Trump and his administration rebuked fears that tariffs could be some higher prices
..... "Absolutely not," commerce Secretariat Howard Lutnick told NBC's "Meet the Press" on Sunday, [03/09/2025] "There's going to be no recession in America."
..... On whether the steel and aluminum tariffs would go through, Lutnick said Trump is "not going to step off the gas."
..... Stephen Moore - Trump's former economic adviser and a key ally of the president - also suggested that Americans could feel the impact of tariffs on their wallets.
..... "Tariffs are taxes, he told NorthJersey.com earlier this month. [03/2025] "If you raise taxes on shoes coming in from China, you're going to pay more for shoes."
..... In 2024, 23% of all steel used in the U.S. was imported, with Canada, Brazil, Mexico, South Korea and Vietnam as the largest suppliers, said the American Iron and Steel Institute. The U.S. gets most of its aluminum imports from Canada, Reuters reported.
..... Specifically for Canada, Trump originally said he would raise tariffs on steel and aluminum by 25%, but then said Tuesday [03/11/2025] morning that he would increase tariff to 50%.
..... The move Tuesday [03/11/2025] was in response to Ontario announcing a 25% surcharge Monday [03/10/2025] on electricity it exports to three U.S. states: Minnesota, Michigan and New York.
..... Even with domestically sourced steel and aluminum the fear is that those producers would "feel they're emboldened to raise prices, said Eddie Russnow, president of Kearny-based Mac Products, which makes electrical distribution and transmission products.
..... Russnow's firm has been "ordering forward" with its Chinese suppliers for the steel and copper used for many of Mac's components.
..... And even if the tariffs do boost U.S. production of steel and aluminum by making the domestically made product such cheaper than the imported alternative, that could take years, said Thomas Prusa, an economist at Rutgers University in New Brunswick who studies international trade.

What about grocery costs?

..... The U.S. imported more than 10.8 billion aluminum cans in 2021 that ended up on grocery store shelves, according to Wall Street rating agency S&P Global.
..... Coca-Cola Chief Executive Officer James Quincey, during a February [2025] earnings call, said that the impact form tariffs on tis products would not be "insignificant, but it's not going to radically change a miltibillion-dollar U.S. business."
.... Packaging "is a small component of the total cost structure,' Quincey told investors.

Higher costs on construction

..... Prusa of Rutgers said steel is sued primary in commercial construction: warehouses, garages and office space.
..... It's used to a lesser extent in residential construction for heating, ventilation and air conditioning, as well as for pipes, Prusa added.
..... In building construction, steel is used in :beams, roofing brackets and infringer," he said, as well as in key infrastructure, such as bridges, railings, railways, lighting and safety barriers, Think of the huge Gateway project underway to build a new train tunnel beneath the Hudson River between North Jersey and Manhattan to improve service for NJ Transit and Amtrak riders.

Potential for costlier pharmaceuticals

..... Aluminum is used in packaging for medication, Prusa said.
..... It's also used in certain consumer products, including anticipates, astringents, aspirin, food additives, antiperspirants and cosmetics, said the federal Centers for Disease Control and Prevention.
..... New Jersey-based drug-maker Johns & Johnson produces some antacids, such as pepcid Complete. And Bayer, which has many facilities in Morris County, is the largest producer of aspirin.
..... Johnson & Johnson is also one of the world's largest producer of cosmetics, including beauty products for skin care and hair care.

..... This article contains material from USA Today.

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