One of Trump's top trade advisers held up a can of Campbell's Soup to argue Trump's massive tariffs are 'no big deal'
- Commerce Secretary Wilbur Ross dismissed concerns over President Donald Trump's new tariffs on steel and aluminum during an appearance on CNBC.
- Ross used cans of Budweiser, Campbell's Soup, and Coca Cola to illustrate his point.
- Ross argued that the price increases on consumer goods would be negligible.
Commerce Secretary Wilbur Ross on Friday used a few props to dismiss concerns about President Donald Trump's new tariffs during an appearance on CNBC.
During an interview, Ross said the additional import tax of 25% on steel and 10% on aluminum will be "no big deal" for consumers. Many economists and analysts have suggested that the new tariffs will likely push up prices goods that are made with the metals, such as beer cans and cars.
Ross attempted to assuage those concerns. To illustrate his argument that the cost bumps would be small, Ross held up a cans of Coca-Cola, Budweiser, and Campbell's Soup.
"If that goes up by 25% that's about six-tenths of one cent," Ross said, brandishing the soup can. "Who in the world is going to be too bothered by six -enths of a cent?"
Ross also downplayed the potential effects on car prices, another serious concern following Trump's announcement Thursday. He noted that production of a car requires about a ton of steel - which costs around $700 currently. So a 25% tariff, he said, only add $175 to the price of a new car.
Scott Lincicome, a trade lawyer at the Cato Institute, a right-leaning think tank, pointed out that using Ross' math shows a huge aggregate cost for the new tariffs.
"Ooh, this is fun," Lincicome tweeted. "So a new $175/vehicle tax [multiplied by] 17 million vehicles sold in the USA (2017) = almost $3B in new annual consumer taxes, JUST for steel & autos. Then do the same calc for all the other industries and THEN add aluminum taxes, and we're starting to talk real money!"
The Beer Institute - a trade group representing beer producers - estimated that a 10% tariff will cost brewers $347.7 million and could lead to the loss of just over 20,000 jobs in the industry.
Ross has long been an advocate for increased tariffs. Before Trump's announcement, the Commerce Department recommended Trump impose a 7% tariff on aluminum and a 24% tariff on steel in a report.
For his part, Trump on Friday argued that the moves would benefit the US. He said a potential trade war, which economists have said could result, would be "good."
"When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart," he said. "We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us."