Trump Enacts 50% Tariff on Hundreds of Common Goods, Including Deodorant and Butter Knives

US President Donald Trump has implemented a 50% tariff on hundreds of common items, including deodorant, butter knives, and baby strollers, that contain steel and aluminum. The tariffs, which went into effect on Monday, were previously excluded from the higher country-specific tariffs enacted by Trump over the last several months. The move is expected to increase production costs across various sectors, including construction, automotive, and electronics.

The Trump administration has significantly expanded its 50% tariffs on steel and aluminum imports, now encompassing a wide array of common goods. Effective Monday, August 18, 2025, the tariffs will apply to hundreds of items previously excluded, including deodorant, butter knives, and baby strollers, that contain steel and aluminum. This move is part of ongoing efforts to protect domestic industries and address trade imbalances [1].

The Commerce Department announced the addition of 407 derivative product codes to the list of goods subject to these levies. These tariffs will impact publicly traded companies such as ArcelorMittal, Cleveland-Cliffs, Nucor, Steel Dynamics, US Steel, Alcoa, and Century Aluminum, among others. The new tariffs will apply to goods containing steel and aluminum, with non-steel and non-aluminum components subject to existing tariff rates imposed on goods originating from specific countries [1].

The impact of these tariffs on the financial markets and the broader economy remains to be seen. However, investors and financial professionals should closely monitor the developments to understand the potential implications for these companies and the industries they serve. The tariffs are expected to increase production costs across various sectors, including construction, automotive, and electronics, potentially leading to higher prices for consumers [2].

Automakers, particularly those in the Detroit area, have expressed frustration with the administration's trade policies. Cleveland-Cliffs, for instance, has signed rare two- to three-year fixed-price steel contracts with several U.S. automakers to stabilize costs amid tariff pressures [2]. The move underscores automakers' efforts to hedge against rising material costs that could drive up vehicle prices and reshape competition.

The abrupt expansion of tariffs leaves many U.S.-based importers in a challenging position. Goods already paid for and in transit will now be subject to considerably higher tariffs, potentially forcing importers to absorb the additional costs or face financial losses [3]. The new tariffs, combined with the recent 50% tariff on copper-based goods, are expected to ripple through the manufacturing supply chain, raising production costs across multiple sectors [3].

In conclusion, the expansion of steel and aluminum tariffs is a significant development that will have far-reaching effects on various industries. As the tariffs take effect, investors and financial professionals should remain vigilant and assess the potential impacts on their portfolios and the broader economy.

References:
[1] https://www.reuters.com/business/us-commerce-dept-widens-products-subject-steel-aluminum-tariffs-2025-08-15/
[2] https://www.cbtnews.com/detroit-automakers-lock-in-multiyear-steel-deals-as-tariffs-raise-cost-fears/
[3] https://www.cnn.com/2025/08/19/economy/trump-steel-aluminum-tariffs