Beer

Trump's Tariffs Will Crush the Beer Industry

And they'll make lots of other things more expensive too.

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RICHARD B. LEVINE/Newscom

Donald Trump's plan to slap a 10 percent tariff on all aluminum imports has beer makers belching their outrage.

"President Trump's announcement today that he plans to impose a 10% 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," says Jim McGreevey, president and CEO of the Beer Institute, a trade association.

McGreevy called the proposed aluminum tariff "a new $347.7 million tax on America's beverage industry" and warned that imposing those added costs could trigger more than 20,000 in job losses.

"American workers and American consumers will suffer as a result of this misguided tariff," said Molson Coors, the Colorado-based macrobrewery that's one of the biggest beer makers in the world, in a statement.

According to the U.S. International Trade Commission's Harmonized Tariff Schedule, most aluminum products currently have tariffs set between 2 percent and 4 percent.

Breweries stand to be particularly hard hit by the proposed tariffs, but they are hardly the only losers. Everything produced with aluminum will become more expensive if the White House goes ahead with its protectionist plan. Manufacturers who use steel will be hit even harder if Trump decides to impose the 25 percent tariff on all imported steel that he is reportedly mulling.

Beyond Trump's nationalist nonsense, the closest thing to an actual rationale for tariffs that the administration has been able to produce is a claim that relying too heavily on imported aluminum and steel is a threat to national security. The United States needs aluminum and steel to make rockets, bombs, and other weapons of war. If the global supply of those commodities were somehow restricted, the argument goes, then it would weaken America's ability to defend itself.

That entire line of argument falls apart under even the slightest scrutiny. For example, the largest exporter of aluminum into the United States is Canada, a nation that also happens to be one of America's closest allies. Any scenario where Canada restricts aluminum exports to weaken U.S. national security is a future where Washington has far, far bigger problems than aluminum imports.

Meanwhile, the negative consequences of the tariffs are not hypothetical. In January, the Trump administration imposed new tariffs on imported washing machines. (With this, at least, they spared us the façade of claiming that cheaper, foreign-made washing machines threaten national security.) Prices immediately increased.

The same thing will happen with aluminum and steel, except the effects will be felt throughout a much wider swath of the economy.

American workers will lose jobs. American consumers will pay higher prices. Beer will become more expensive. But at least we'll be secure against the threat of a war with Canada.

NEXT: Trump Chief of Staff Says Job Is God's Punishment, Melania's 'Einstein Visa' Raises Eyebrows, Millennials Defined: A.M. Links

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  1. Whatever Reason. American companies and the Americans who used to work for them are proud to be the eggs in the big, bee-yewtiful, greatest ever American omelette that Trump is making.

    1. Trump is now in screw up the economy mode. Great. Like we don’t have enough trouble with the out-of-control spending.

      1. “Trade wars are good, and easy to win.”

        So sayeth the Protectionist-In-Chief.

        1. “…the largest exporter of aluminum into the United States is Canada, a nation that also happens to be one of America’s closest allies.”

          This week, maybe. Just wait. DJT has been pissing off Canada so consistently of late, he’ll very quickly realize that Canada doesn’t have to rely on America as a trading partner. Besides aluminum, the U.S. buys more petroleum from Canada that it does from the entire middle East COMBINED. It also buys at a discount. Just wait until the next insult drops and the pipeline valve gets shut down. How does $6USD/US gallon for gasoline sound? It is MUCH closer than you realize. Eventually, Americans will realize that Trump is NOT a negotiator, he is a schoolyard bully. Unfortunately, when he gets taken down, so do you.

          1. LOL, like Prime Minister Dress-Up has time to pay attention to any of that shit. He’s too busy courting terrorists and pissing off India.

          2. While it’s not impossible, it wouldn’t be quite that easy as you imply for Canada to shut off the flow of Oil to the US.

            They send most of their oil to the US via pipelines headed south, they don’t have the capacity to send all of the oil that they currently send to the US to ports where it could be shipped overseas.

            That was one of the points that came up under the Obama administration in the debates over the Keystone pipeline. When Obama was threatening to block the pipeline, Canada threatened to build a pipeline to their west coast instead so they could ship that oil to Asia instead (they never broke ground on this).

            They would have 3 options.

            Keep sending oil to the US until they have east/west pipeline built.

            Shut down extraction operations while they build the new pipelines. This would hurt their own oil producers as much as it would hurt the US.

            Go on a massive spree of building oil storage so they can continue to extract while sitting on the oil while the new pipelines are built. This would be less damaging to their domestic producers than stopping production completely for years, but would still cause some hardship.

            They would have to

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  2. Like I drink beer out of a can like an I don’t know what.

    1. Only grubby yokels in flyover states drink beer from cans. Trump has made it exceedingly clear that he doesn’t give a shit about them.

      1. I tried to be a jackass and googled “expensive beer in an aluminum can.” I got nothing.

        1. Some of the top-rated craft breweries in the US almost exclusively can their beer:

          Tree House

          The Alchemist

          Etc…

          1. I’ve yet to taste a “craft” beer that can match anything by Paulaner, Ayinger, Spaten, Hofbrau or Hacker-Pschorr. All their stuff comes in bottles.

            When I visited the Czech Republic, the Staropramen came in brown and green bottles. Same beer. Same price. Just whatever bottle happened to be handy. They reused the bottle. The beer was cheaper than soda pop and better than anything I’ve ever had from any American brewery… ever.

            1. It all, quite honestly, tastes like carbonated urine to me. Or what I imagine carbonated urine to taste like.

              For the love of god, drink whiskey like a man. Even if you’re a woman.

        2. In the past few years a lot of craft breweries are moving towards cans. People don’t drink an IPA or any other high gravity beer out of a bottle or can anyway. You poor it into a glass you silly yokel 🙂

        3. Try “FAXE”. It’s a Danish beer in 1/2 liter cans that runs 20% (that’s correct”) alcohol by volume.

      2. Well, yeah. Glass doesn’t do that well in the back of a 4 wheeler…

      3. Hey, don’t sell the grubby yokels in coastal states short!

      1. As someone that has been cracked over the head with a beer bottle, let me tell you, they don’t break like in the movies.

        1. One thing I discovered when I was making my own beer was the variation in the quality of the bottles (which I’d get from the redemption center). Some could withstand a ten megaton blast, while others would break if you gave them a dirty look.

    2. Bottles fit just as well in my beer hat.

    3. I always drink my beer in the can.
      https://www.youtube.com/watch?v=Ri791tauGmU

  3. YOU @#$(&%!@$%(#&@%!@#%&(&%!$ YOU! Keep your grubby, filthy hands off of my beer!

  4. Tony is probably trying to figure out why libertarians can’t see how smart Trump is on fair trade.

    1. Absolutely. This shit should make the progs wet. But it won’t because……..

    2. “Fair Trade” to the Donald is unidirectional. It only travels towards him. He couldn’t “negotiate” his way out of a wet paper bag.

  5. IMHO, only redneck hillbillies drink beer out of a can. I have not drank a beer that wasn’t in a bottle for 2 decades.

    1. Actually, the craft beer industry has shifted towards a preference for cans for beers that are highly sensitive to the damaging effects of light. It significantly increases shelf life. A lot of highly hopped beers (IPAs and such) are being sold in cans.

      Also, I would agree that nobody should be drinking beer out of a can. Poor it into the proper glassware like a civilized person. Unless it’s the Coors Light pictured above, then poor it into a drain where it belongs.

      1. A lot of highly hopped beers (IPAs and such) are being sold in cans.

        So the assertion made by many here, that no good beer comes in a can, stands.

        1. DEAD. TO. ME.

          1. Nothing worse than a snob. Oh, except beer snobs.

            1. As some one who considers them self to be some what of a beer snob I disagree. Yes beers that come in cans are generally of poorer quality, but I’m not so snobbish that I will reject a canned beer if you give me one.

              1. You need to visit New England. All of the best beers except Maine Beer Co come out of a can.

                1. I have yet to see Sam Adams in a can.

          2. If you want to drink elephant piss it should be freshly acquired in africa, just as guiness loses its taste per the inverse square law from Dublin.

            1. Guinness is made in lots of different places and varies quite a bit in flavor and alcohol content depending on market.

              1. This is true. The Guinness I drank in Ireland were much better than the one’s here in the US of A.

        2. All beers taste horrible to me. The closest thing I can tolerate is cider.

          I’ve never seen cider in a can, but if it exists I’d have no objection to drinking it.

          1. Try Austin Ciders from Texas. In fact Texas has a lot of ciders going on.

            1. How about Dicken’s Cider? That’s the best!

        3. There are also good non-IPAs in cans now.

          I think can’s are probably just better than bottles. Better shelf life, more efficient to pack and transport, no breakage.

          1. All of that is true. Is the plastic liner PBA free?

      2. I had a great stout a couple weeks back that was from a can. I was perturbed at first that I spending such a high price on something from a can, but it was damn good. And yes, I see a ton of craft beers being sold in cans now.

      3. The Alchemist says you should drink Heady Topper out of the can. I think they know what they’re talking about!

        1. That’s an artifact of Heady being one of the first “hazy” beers, ie hazy before it was cool to be hazy. Nowadays you have to pour it so that you can share it with all your idiot friends on Instagram.

          The aroma of the beer is a critical part of the perception of flavor. You can’t fully appreciate that without pouring it into a glass.

          1. I always assumed they didn’t want people to see the “gross stuff” at the bottom.

            But yeah, it really depends on your sensitivity to the smell of aluminum. I don’t think you get much more aroma out of the glass until the can starts to get below half. Generally my rule of thumb is if I’m sitting down, out of a glass, if I’m walking around, out of a can.

      4. I would normally agree 100% with you about ANY “light” beer. However, since Molson bought out Coors and it’s being brewed in Canada, It actually tastes like the Old Coors I would get in Colorado in the ’60s.

    2. Well, there is Guinness Draught and the floating widget.

      https://en.wikipedia.org/wiki/Widget_(beer)

      1. If you’re drinking Guinness out of a can, you’re already doing it wrong. Canned Guinness is the worst.

        1. Canned Guinness Draught is the best–if you don’t have a keg.

          1. If you look closely, Guinness is NOT a beer, it’s a Stout. I have been known to take on three Marines (and win!) over a Guinness.

            1. Stout is beer. Just as is a Porter, pilsner, IPA. Besides a real IPA does not come from a can or bottle. It is from a keg.

    3. Amen brother. Cans are for poor/dumb college kids or budweiser drinkers..

      1. ‘because u deserve what every individual should enjoy regularly’

  6. Actually, why is nobody challenging the absurd notion that national security requires us to put tariffs on imports? If aluminum and steel production are so critical to our military-industrial complex, then utilize the current existing waste-of-a-money complex to guarantee contracts to keep US based aluminum and steel producers in production?

    There’s no reason to basically subsidize an already bloated defense budget with increasing costs on consumer goods. Do it through good old fashioned government cronyist spending and leave the market distorting effects of this dumb tariff out of it.

    I don’t mean this as a principled solution, but it seems more pragmatic than the approach of tariffs on ALL imports.

    1. Cronyists are nothing if not inefficient. Don’t know how to say that.

    2. But, make America great again and stuff.

    3. Aluminum dumping by the Chinese is distorting the market. Currently the Chinese produce 47% of the aluminum. Furthermore, since the Chinese have lowered the cost of aluminum, has the price of beer gone down? No, but profits have gone up. Aluminum is selling below 1989 level. The price of oil and coal will have a greater effect than the proposed tariffs. The same for steel, Current price is well below 1986 price. Has the price of cars gone down? Again, NO, but profits are up.

      https://fred.stlouisfed.org/series/PALUMUSDM
      http://brookstonbeerbulletin.c…..1952-2016/

  7. I loved the response from the EU trade dude: “If Trump wants to punch U.S. consumers in the mouth, then we just might have to punch our consumers in mouth.”

    1. Typical status-seeking behavior.

      1. Seriously. Or, if some dumbass wants to sell us subsidized steel and aluminum, lets take advantage of the cheap stuff. That is tantamount to treason fro some reason.

  8. 20k job losses over 347MM. Right. That’s even more effective than the stimulus was. But wait, there’s more! This will help the deficit. How? Well reason told us repeatedly that the tax cuts wouldn’t provide sufficient growth to offset lost revenue, therefore tax increases won’t cause sufficient loss in production to offset the increase in revenue. You do care about the deficit, don’t you?

    This kind of stupid hyperbole doesn’t help fight a genuinely stupid decision. This is a stupid decision because it picks winners and losers and penalizes consumers. Period.

    1. Ain’t hyperbole. It’s simple math and simple economics.

      Make something more expensive, people buy less of it, find an alternative.

      Whether or not their $347M is realistic, divide it by 20K jobs and you get $17K per job. That seems low to me, but it’s beer; most of those jobs are stockers, drivers, etc, none of which have to be particularly highly paid. Maybe they are counting part time jobs, shorter hours, etc. and it’s jobs affected, not jobs lost.

      Whatevs, dude. Tariffs are a notoriously inefficient way to redistribute wealth from consumers to cronies.

      1. It IS simple math. 17k per job is pathetically low, and the text actually read “at least 20k” so that 17k is only going down. The breathless screeching and unfounded (and inconsistent) claims don’t help the cause. But unacceptably unfounded or weakly based claims when trump does it is a-ok if your motives are pure, right? Simply put, get your shit together

        1. I answered that $17K per job problem. All you’ve done is screech about Trump. What, you like trade barriers? Fuck off,slaver.

    2. More amusing to me are the Bernie types that loved this shit when it came out of Bernie’s mouth but burn Trump for it. Sure, Trump’s an economic retard. We know this. But there’s a significant portion of the populace that’s not only retarded on the subject but also are so ignorant that they can’t even support a consistent position.

      That doesn’t let Trump off the hook, it’s just interesting to me.

      1. Even better: a veto proof bill overriding him should be a slam dunk, right? Or maybe protectionism is just a tad more popular than some want to admit.

        There’s more than enoigh wishful economic hand waving on all sides, including the self-proclaimed rational libertarians who seem to think that with just a little more sweet r&d “renewables” are going to work Real Soon Now. Ask the snow buried UK how well all those solar panels and furloughed wind turbines are working now.

    1. Yes he does….He drinks 12 Diet Cokes a day!!!….He is so full of artificial chemicals & that is why he made this horrible decision!

  9. Really hard to work up outrage over the thought of canned beer going away. I’m sure Bud/Coors/McSwill can just switch to plastic bottles.

    1. I’m sure the swill brands’ flavor will be just as awful in plastic.

  10. Commerce Secretary Wilbur Ross was just on CNBC and said the tariffs were not big deal. He held up a can of Cambpell’s soup and said the penny or so increase per can is trivial and “…Who in the world is going to be too bothered?” Well Wilbur, maybe the people in your neighborhood won’t be bothered, but a penny here, a penny there and it adds up for some people.

    1. Some CNBC guest just pointed out the TPP would be the best thing that could happen to the USA and world now. It staves off the Chinese and replaces NAFTA.

    2. But you’re forgetting that the tax cut increased their take home pay by 30 pennies, so.

    3. “but a penny here, a penny there and it adds up for some people”

      Tariffs are bad policy, and this one is no exception, but that line made me chuckle.

  11. Don’t you troglodytes see?! It’s n-D chess, where n=0! His most brilliant plan yet.

  12. Per Trump:

    We want free, fair and SMART TRADE!

    This isn’t “free” trade. It’s the very opposite of free trade. It’s protectionism.

    1. Side note: the amount of contradictions and outright departure from reality from the Trump Admin are becoming staggering.

    2. Uhh, even in your quote Trump says ‘fair’ and ‘smart’ trade and it’s because he specifically doesn’t believe in free trade he believes in some amorphous non-existent ‘fair trade’ instead. He’s terrible on this subject, and if anyone is surprised by this they haven’t been paying attention for the past two years.

      1. He also says “free”. But everyone knew that that’s a load of crap all along (as you say).

  13. When Gary Cohn leaves this dysfunctional administration the markets will tank again.

    He is lone sane one left on economic policy.

    1. Where’s minimum-wages-don’t-hurt kruegger when you need him, right?

  14. But stock in bottle manufacturers.

  15. ” Steel is just a tiny input in the U.S. gross domestic product (GDP) ? which is why it’s so crazy. You mess up your entire trading system for an industry that has a total of 80,000 jobs,” 2015 census data showed roughly 140,000 Americans employed in steel mills, contributing $36 billion to the national economy.
    By comparison, steel-consuming industries, which experts believe will be hardest hit by the tariffs, employ 6.5 million Americans and add about $1 trillion to U.S. GDP, according to the census. ” – via CNBC

    Alright Trumpkins, attempt to explain the dotards brilliant strategy now. What a week, first he slams due process and now free markets, but at least it’s not Hillary!

    1. It was widely noted during even the primary that Trump subscribes to the Bernie Sanders model of trade. It’s by far his worst position in my view.

      1. I agree, I could somewhat tolerate some of his other positions but free trade is paramount imo. There are libertarians and republicans who will use the excuse that there is no nation, region or system on the planet that is truly free market, therefore why should we open our borders to dumping etc, this is a lame fucking excuse. Economic data has proven time and again that protectionism ultimately harms. Some people need to read On the Wealth Of Nations by Smith.

        1. It’s important but not paramount. Reforming (ideally eliminating) the welfare state is paramount. That’s an existential threat. Unfortunately he’s even worse on that.

          1. Yeah I do have to agree with you there, the welfare state is a behemoth that needs to be reformed, ideally dismantling the entire shebang would be great but the Caesars gotta keep the plebs happy with bread & circus.

    2. Only if there has been FREE TRADE. Assholes only produce one end product.

  16. but at least it’s not Hillary!

    Yup.

    But this is what you get when libertarians and Republicans continually and consistently defend our current trade and market policies as “free market” and “free trade”. People start to think free trade sucks, because what we have, which is not free trade, does generally suck. Leaves the door open for protectionists because as we all know we just have to “do something”.

    1. I can’t think of any libertarians who would say that what we have now is “free trade”, unqualified.

      what we have, which is not free trade, does generally suck

      Does it? I mean, it’s not ideal for sure. But seems to work OK. International trade creates a lot of wealth. If someone is dumb or uninterested enough not to see that we don’t have really free trade, do you really think that you’ll be able to change their minds about trade anyway?

    2. No, Libertarians are trying to keep the international economic clusterfuck from getting worse than it already is.

  17. Meh. I drink mostly wine. So, as long as there are no tariffs on sand… //jk

    1. I thought Rebel Scum would drink budget beer.

      When I think “Rebel Scum”, I don’t think wine aficionado.

      Oh, maybe you’re taking about Mad Dog?

      That must be it!

      1. I never said anything about expensive wine…

  18. What has the UAW said about this?

    Trump may be helping swing voting steel workers in western Pennsylvania at the expense of swing voting auto workers in Michigan.

  19. Wow, a 10% tariff? Ok, yeah, I see why the evening links said the DOW suffered. That’s absurdly high for something that’s already pretty damn expensive.

    1. It matters. Especially in a commodity like that.

      DEMAN KURV!

      1. Indeed, raising the price of inputs has predictable results. This is pretty much exactly what I expected from Trump though. He’s economically retarded and/or blatantly vote buying.

        1. I’m going with the latter.

          1. I can’t rule out both. He’s been too consistent on the issue not to believe his own nonsense since he’s consistent on very few things.

            1. Indeed.

    2. And steel is going to be 25%.

      1. I’m not sure what the Steel tariff is now, but I do know that steel is outrageously expensive as is.

        1. Steel is less costly now than in 1986.

    3. Aluminum is fairly cheap at the moment. With ups and downs, the cost of a pound of aluminum today is the same as it was in 1989, A fraction over $1 in 1989 and 97 cents today. It had highs of almost $1.40 a pound and lows of .45 cents a pound. Copper is running $3.11 a pound. Lead is $1.11 a pound. Cost for steel depends on the type of steel it is. Tin is the expensive base metal bringing $9.83 a pound.

  20. Disregarding the loss of an industry, from a security perspective it makes a heck of a lot of sense to use up your competitors commodities while preserving your own.

    If security is the goal, we should buy all the oil, steel, aluminum, gold, diamonds, etc.. that we can afford from any country that will sell them to us…

    1. I said that for years about oil. Why not use everyone elses first? Peak oil may be a long ways off but there is not an unlimited supply.

    2. Using up your competitor’s natural resources first makes sense in a long term way, assuming you can predict what will be important natural resources in the long term.

      But you only reach the long term if you survive the short term, and rebuilding a steel or aluminum industry from scratch could take decades.

      So I can see the national security argument, even though the economics suck. So do the economics of spending money on national security, right up until you get conquered because you didn’t.

      1. If you are talking about commodities, you aren’t losing the manufacturing industry, you are only losing the extraction industry. Skipping a couple of generations of extraction technology could be a huge money (aka resource) saver.

  21. The United States needs aluminum and steel to make rockets, bombs, and other weapons of war. If the global supply of those commodities were somehow restricted, the argument goes, then it would weaken America’s ability to defend itself

    I don’t get it. How does restricting supply help America defend itself if the supply is restricted?

    1. The theory is that if you are in a major conflict where your supplies were cut off, you need to make sure you have domestic suppliers capable of feeding the beast. Which you won’t if you let them go out of business. A better solution would be to further cut taxes and regulations in order to make US companies more competitive.

    2. The argument is that if we buy those products from oversea’s than foreign makers of those goods would control our supply thus if they restrict the supply America can not build rockets, bombs, etc.

      I’m not saying it’s a good or bad argument necessarily, but that’s how the argument usually goes.

  22. It’s stupid because he’s just prolonging the enevatable. Once he’s gone the trade deals will continue on and this will be reversed. He’s just temporarily disrupting things for no good reason. He’s like a bull in a china shop.

  23. Crony capitalist at his best. Wilbur Ross his trade representative has extensive ties to the steel industry, so they get the nod. The producers of products that use steel and aluminum, especially those that try to export their product will be hurt. But, ya gotta do what your donors tell you to do.

  24. Sure, the tariffs are a bad idea, but I don’t think a 10% increase on something that costs what, 3 cents per can is going to crush them

    1. And that’s the case where the tariff doesn’t do what it’s intended to and make foreign aluminum cost more than domestic. The working-as-intended case is less than that.

  25. Any scenario where Canada restricts aluminum exports to weaken U.S. national security is a future where Washington has far, far bigger problems than aluminum imports.

    Someone hasn’t seen Canadian Bacon with John Candy. It could happen, people! Just like Red Dawn was a real possibility.

    1. Especially the remake where it’s North Korea

    2. Canada exports nuclear reactors and electricity. They can afford to make aluminum. Once These States are a huge Puerto Rico, with broken windmills, trashed solar panels and blackouts, we’ll be begging to pay for aluminum we lack the power to produce.

    3. Canada exports nuclear reactors and electricity. They can afford to make aluminum. Once These States are a huge Puerto Rico, with broken windmills, trashed solar panels and blackouts, we’ll be begging to pay for aluminum we lack the power to produce.

  26. Just more scare mongering.

    An aluminum can will bring you 2 1/2 cents if you sell it for scrap. How much does a new can cost? 5 cents? ten cents? So this tariff will add an extra 6 cents to the cost of a six pack? How many people would even notice that cost? Even if a new can cost a quarter, what would that add to the cost of a six pack? 15 cents.

    1. “Trump’s Tariffs Will Crush the Beer Industry”

      *Crush*

      The markup on recycled aluminum is about 100%. So, 5 cents of aluminum in a can, increased 10%, is half a penny per can increase. Crappy beer is around a dollar a can. 0.5% increase in the cost of a can of beer.

      *Crush*

      Honest journalists would have included this calculation in the article. But honest journalism is on short supply at Reason, particularly where Trump is concerned.

      TDS Uber Alles!

    2. Not to mention the 5 to 10 cent deposit on each container. Yes, you can get that back when returned, but do you? That alone should have put beer makers out of business right?

    3. Seriously, that was my reaction. This is really NOT going to help where I work, some of the high quality stainless steal we use in our stampings for the automotive industry isn’t made in the US. Expect the cost of fuel injectors to go up a couple percent.

      But a 10% increase in the cost of the raw material for beer cans is going to destroy the industry? Seriously?

      Nobody will even notice it.

  27. Of all the stupid that is Donald Trump this is the stupidest yet.

  28. It may affect the beer industry, but honestly I don’t really feel for people who buy cheap beer in CANS.

    Beer belongs either in a bottle or in a glass poured from a bottle. Cans affect the flavor of beer.

    1. Drinking beer from a can seems pretty civilized compared to drinking beer that was mostly foam out of a Dixie cup at a frat house kegger.

  29. American workers will lose jobs. American consumers will pay higher prices.

    When people say that “tariffs create more jobs”, what they man is that tariffs make it more attractive to pay higher wages to low skill US workers. In a free market, that’s an irrational thing to do. But we don’t live in a free market, we live in a country where nearly half the population receives some kind of government assistance and represent a massive discouragement to labor force participation. Within that context, tariffs may, in fact, lead to more incentives for low skill workers to go back to work, and that may outweigh the inefficiencies and costs imposed by the tariffs themselves. Whether it actually will or not, nobody knows.

    But the point is: you can’t use free market reasoning (“tariffs are always bad”) in trade between countries that are very, very far from operating as free markets. And neither the US, nor Europe, nor China operate as free markets.

  30. Any scenario where Canada restricts aluminum exports to weaken U.S. national security is a future where Washington has far, far bigger problems than aluminum imports.

    Canada, Europe, China, and the US all have massive social and demographic problems, and those turn into political problems very quickly. And through economic policies, those problems can be “exported”, and that’s what Canada, Europe, and China are doing.

    It isn’t economically rational for Canada or Europe to adopt policies that increase employment of low skill workers and recent migrants in those countries, but it is a political necessity. And if adopting those policies means screwing over US industries, they are certainly going to do it.

    So, you are right, we do in fact have “far, far bigger problems than aluminum imports”.

  31. Perhaps the industry should start charging a “deposit” on bottles, and then sanitizing, and reusing them – as they used to do in the Dark Ages of the 50’s!

    1. IIRC, they stopped doing it, because new bottles were cheaper than the cost of collecting and reusing the old ones.

      Seriously, our local recycling program won’t even take glass bottles anymore. I’m going to have to resume home brewing to use up all this glass that’s piling up in the garage.

      Damn you, Trump, forcing me to that resort!

    2. Dark ages? They still do this, in certain states.

  32. Bullshit. Most of the big brewer’s are no longer American. And the cost of aluminum is going to add less than a penny to cost of a twelve pack in aluminum cans It about thirty five cents worth of aluminum to make about a dozen of todays paper thin beer cans If you double that cost, which will not happen, it would not change the price of beer, but it might very well benefit the US glass industry. Also, most American brewers are now local, and don’t use aluminum. This is bullshit being put out by foreign companies trying to make us fear for their foreign-operated businesses.

  33. Ridiculous. An aluminum beer can costs between 2 and 5 cents. At least part of that cost is forming and stamping, etc. The raw materials make up only a portion of the finished cost. But even if the entire cost of the can went up by 10%, that’s an increase of 0.2 to 1 cent per beer. THAT is going to put the beer sellers out of business? $0,24 per case? I don’t think so.

    1. The price of diesel fuel going up 1 cent/gallon would have a greater affect.

  34. Last month: Trump’s tax cuts are Armageddon!

    This month: Trump’s tariffs are Armageddon!

    Next month: ?

    1. Probably more Russians, LOL… Rachel Madcow has gone so hysterical (a year and a half since the election) that she will be laughing while trying to tie together Trump Conspiracy with hard landings of Air Force One pilots who also served under Obama, Bush, and Clinton…

  35. FAKE NEWS, you treasonous jews….
    …All beer companies (except one) are owned by foreign organizations… Yes, even Budweiser and South African Miller. When you buy beer, it sends our money outside of the USA.
    …I DO NOT CONSIDER ONE COMPANY TO BE “AN INDUSTRY”…. Get out!

  36. I’ll gladly pay more for my beer can/soda can to be made in America.

    Every dollar we suction off China will bring jobs, financial stability to Americans, a cleaner environment and a step toward peace on the bigger scale

  37. Trump is trying to one-up Obama’s genius Cash for Clunkers idea.

  38. Is this the same Anheuser beer industry that paid lobbyists to send the pigs to shoot our kids over plant leaves? I’m gonna MISS those guys!

  39. Ugh. Sometimes when I read these things I realize almost none of you actually own a business…

    The can that holds beer is probably responsible for somewhere between a cent and a coupe cents of the cost…

    Think about how much a can of Coke costs, like what $.50 in a 12 pack or something? Now cut that retail price in half and you have the wholesale price. Now cut that by another double digit percentage, and you have what the distributor is paying. Now cut that in half (or more again) and you have the manufacturers cost. Now split that between the cost of the beverage itself, the labor involved in all steps, and the raw materials cost which includes the can. The whole can + liquid is probably under $.20, maybe a lot under, and only a small part of that is the can, let alone the raw aluminum cost itself.

    The can costs next to nothing. This will probably not add a single penny per can to the cost of anything. It will probably be fractions of a cent because it is only a 10% tariff.

    Yes, it’s an extra tax on consumers, which costs people money. NO it will not make shit all of difference in pricing or effect the jobs in the beverage industry. That’s all bullshit from people who don’t want their costs hiked. If it were a 500% tariff then it might add a couple cents… But not this. Materials costs go up 5 or 10% all the time, it’s not a big deal. Hyperbole won’t get anybody anywhere.

  40. You guys are getting a bit wacky here. A 10% hike on aluminum won’t be anything for the buyers, nor the sellers, no matter how much of a stink they make of it in the article. First, they sell beer in more than just cans. You can buy it in glass too. Secondly, a case of Coors costs 16.99, 10% of that is 1.69, which is not a hell of a lot more, but remember, that 1.69 is 10% of a case of beer, not a case of aluminum. So when you’re buying your beer, your not paying 16.99 for aluminum, you’re paying it for beer, the aluminum cost for that case is likely only 1.00 of that. 10% of 1 dollar is 10 cents. So your case of beer goes up to 17.09. Oh my gosh, you’ll go broke over that. No one’s going to lose any jobs, no one’s going to go broke buying beer in more expensive aluminum. And hell, the shit’s linked to Alzheimer’s, buy your beer in glass.

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