Trump’s tariffs…beer more expensive

The Trump administration’s announcement of new tariffs on…


Aluminum and steel drew significant backlash from several industries, including beer producers. Trump pledged that the newly-announced duties would increase aluminum production in the United States,  whose products are packaged in aluminum — including PepsiCo, Coca-Cola, the Beer Institute, etc. — warned that tariffs would make it more expensive to brew and package beer.


“While we appreciate the viability of the domestic aluminum smelting industry, tariffs or import restrictions will have the unintended consequence of harming many healthy downstream U.S. manufacturing industries,  that are substantially larger in size and economic contribution.”  The Commerce Department recommended a tariff of 7.7 per cent on all aluminum imports, a tariff of 23.6 per cent on imports of the metal from 12 specific countries, and a limit, on the amount of aluminum imported from any specific country.


10 per cent tariff on aluminum would cost beer and beverage producers $256.3 million, a 20 per cent tariff would cost $512.5 million and a 30 per cent tariff would run $768.8 million. “Aluminum used to make beer cans is not a national security threat-since when was it?. Aluminum is critical to the well-being of North-America’s beer industry as, more than half of the beer produced annually is packed in aluminum cans and aluminum bottles.” Tariffs would dramatically increase the cost of aluminum cans and bottles, putting 2.2 million North-American jobs at risk that, depend on the viability of the beer industry.


Upon announcing that these duties would come into effect, many heralded the move as one that would only increase tensions with Canada, who exports a full 16 per cent of steel imported into the United States. According to the Conference Board, a nonprofit organization that chronicles the development of Canada’s beer industry, one in every 120 Canadian jobs is supported directly or indirectly by the national beer industry.


Furthermore, national can sales rose about six per cent, while bottle and keg sales declined by about nine per cent and o.5 per cent. In total, cans currently hold 56 per cent share of the Canadian beer market, with bottles and kegs holding the remaining 33.8 per cent and 10.2 per cent respectively. Canadian officials, American officials and businesses on both sides of the border, have been pushing for an exception that, would shield Canada from the new tariffs. And as for the Trumpster… he will sign off on the changes soon, and they will last “for a long period of time.” Great-NOT. Ps. If the tariffs are put in place, the U.S. will pay more for their own products-nice move.


Article credit: Global News

Photo credit: Allaire/boom

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