It’s no surprise that tariffs can shake entire industries. While their intent may be to protect domestic production, the ripple effects often reach deep into the supply chain, pricing strategies, and profit margins. Some sectors feel the pinch more than others, especially those heavily reliant on global trade.
Too Long; Didn’t Read
- Some industries that are impacted by tariffs include: manufacturing, agriculture, technology, retail, and construction.
- In the past few years, we’ve seen the real impact of tariffs on everyday items (food, beverages, clothing, etc).
- When the United States increases tariffs, many other country introduce retaliatory tariffs, which can cause US-based businesses doing international business to lose customers due to price increases.
The Impact of Tariffs on Manufacturing
Steel and Aluminum
Recent policy changes have put steel and aluminum tariffs back in the spotlight. As of June 2025, President Trump has announced a hike in tariffs on all foreign steel and aluminum – from 25% to a staggering 50%. According to experts interviewed by ABC News, this move is expected to raise the price of goods ranging from cars to canned soup.
Automotive
Steel, which makes up about 60% of a vehicle’s weight, is central to car manufacturing. With the tariff increase, automakers could face input cost hikes leading to vehicle price increases between $2,000 and $4,000. That’s a hefty markup for consumers, especially when coupled with existing inflation pressures.
Appliances
But the impact doesn’t stop at cars. Major home appliances like dishwashers, refrigerators, and washing machines also rely on steel and aluminum. Past tariff rounds from 2018-2019 caused washing machine prices to increase by 17% (+$86 per unit) and refrigerators and freezers increased 13%.
Food & Drink
Even grocery staples aren’t safe. A one-cent increase per aluminum can may sound small, but it adds up across millions of cans of soda, soup, and beer. The Beer Institute reported that previous aluminum tariffs cost the beverage industry $1.7 billion between 2018 and 2022. With the tariffs, costs will climb even higher – pushing grocery bills up along with them.
The Impact of Tariffs on Agriculture
Soybeans, Corn, and Pork
Agriculture is one of the most tariff-sensitive sectors because of its reliance on exports. When countries impose retaliatory tariffs on U.S. farm goods, farmers are often caught in the crossfire. For instance, during the U.S.-China trade dispute, American soybean farmers saw their largest customer all but disappear overnight, causing prices to plummet.
Specialty Crops
Products like nuts, wine, and fruits (which are grown in specific U.S. regions) also suffer under tariffs. These are luxury or specialty exports, meaning foreign consumers are more likely to switch to alternatives when prices rise due to trade barriers.
The Impact of Tariffs on Technology and Consumer Electronics
Tariffs on electronics and technology-related components increase costs for both manufacturers and end users. Many smartphones, computers, and household electronics are produced with parts from multiple countries. A tariff on even one key component can create delays, redesigns, or price hikes. In some cases, companies have had to shift manufacturing to avoid tariff-heavy trade routes, which can be expensive and time-consuming.
The Impact of Tariffs on Retail and Apparel
Clothing and footwear are among the most globally sourced products. Tariffs on imported textiles or finished goods can hit small and mid-size retailers especially hard. Brands may try to offset the costs by sourcing from alternative markets, but that’s not always feasible at scale. Higher prices at the checkout counter can lead to reduced consumer spending and thinner profit margins.
The Impact of Tariffs on Construction and Housing
Tariffs on lumber, steel, and fixtures have pushed up building costs. Contractors and developers often lock in prices months in advance, so a sudden tariff can eat into profits or delay projects. Over time, higher material costs trickle down to homebuyers and renters.
Final Thoughts
For business owners, understanding which industries are most affected is crucial to managing risk and staying nimble. Whether you’re in farming or fintech, it’s wise to audit your supply chain, monitor global policy shifts, and consult professionals who understand how trade policy intersects with operations.
