President Donald Trump said that he plans to impose a 25% tariff on imported steel and 10% tariff on imported aluminum. The announcement sent markets tumbling more than 500 points on Thursday.
The proposal has left beer and beverage companies wary. More than half of the beer produced every year in the U.S. is packed in aluminum cans or aluminum bottles. The beverage and brewery industry has been relying on imported aluminum to make 96 billion cans annually. Cans account for about 9.76% of the brewers’ overall production cost of beer, according to a report from John Dunham & Associates last June.
“The higher cost of cans resulting from a potential tariff on aluminum would be passed through to consumers as part of the manufacturer’s price of beverages,” the report writes. John Dunham & Associates estimates that a 10% tariff on aluminum will lead to a 0.2% increase in beer price.
Source : Yahoo
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