President Trump’s proposed steel and aluminium tariffs could impact far more than the metal industry and push up prices on a variety of products, according to Art Hogan, Chief Market Strategist at B. Riley FBR and Wunderlich Securities.

The countries impacted by the tariffs could retaliate by upping prices on things like plastics or copper, he explained. And that would, in turn, raise the cost of manufacturing any product that has multiple components. . “There’s a spider web effect to all of this that turns negative,” said Hogan.

“The United States is a net importer and a net consumer of all things made from industrial metals, and that’s the bottom line.”

On Thursday, Trump announced that he would soon impose a 25 percent tariff on steel and a 10 percent tax on aluminum imported into the U.S.

The news caught the market off-guard and rattled many allies, including Canada, Brazil, Mexico, South Korea, and Germany, which are the top providers of steel and aluminum for America.

Tariffs would have other consequences. The U.S. could be put in a position where it’s unable to negotiate other trade agreements with its allies, said Hogan.

“We’re concerned about renegotiating NAFTA. I think the inability to renegotiate NAFTA would be disastrous for the U.S. economy and certainly for markets.”

For the full interview, click here.