President Donald Trump recently announced plans for a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. The increase could have a large impact on the price of a number of consumer products in the United States, including beer.
America imports 90 percent of the aluminum used by businesses in this country, according to the Washington Post. There are more than 6,000 breweries in the United States that use a share of that aluminum, and canned craft beer has been on the rise. In all, Yahoo! reports that 96 billion aluminum cans are made by the beer and beverage industry every year. Cans are already 9.76 percent of a brewery’s overall production cost, according to John Dunham & Associates, and any rise in that percentage will result in increasing beer prices.
“Aluminum is critical to the well-being of America’s beer industry as more than half of the beer produced annually is packed in aluminum cans or aluminum bottles,” Jim McGreevy, the president and CEO of the Beer Institute, wrote in a statement. “President Trump’s announcement today that he plans to impose a 10 percent tariff on aluminum imports will increase the cost of aluminum in the United States and endanger American jobs in the beer industry and throughout the supply chain.”
McGreevy referenced back to numbers that the tariff will add a $347.7 million tax on the beverage industry. He also stated that it could result in a loss of more than 20,200 American jobs. It’ll also impact Canada, the largest importer of aluminum to the United States.
The official announcement and further details on the tariff will be announced in the second week of March. But judging from what’s been said so far, don’t be surprised when your future beer budget doesn’t go as far as it used to.