On July 1, the Chief Executive Officers of prominent breweries in America wrote a letter to US President Joe Biden, pleading to halt tariffs imposed on aluminium. Since the imposition of tariffs in 2018, it has cost the industry more than $1.4 billion. As per the letter, the beer sector consumes more than 41 billion aluminium cans yearly.
“These tariffs reverberate throughout the supply chain, raising production costs for aluminum end-users and ultimately impacting consumer prices” according to the letter signed by the CEOs of Anheuser-Busch, Molson Coors, Constellation Brands Inc.’s beer division, and Heineken USA.
The letter was sent to the president months after aluminium prices reached a multi-decade high and during the worst inflation in more than 40 years. Since then, the metal's price has considerably decreased.
“While our industry is more dynamic and competitive than ever, aluminum tariffs continue to burden breweries of all sizes. Eliminating the tariffs will alleviate pressure and allow us to continue our vital role as strong contributors to this nation’s economy,” the letter stated.
The tariffs on aluminium were imposed in 2018 by Donald Trump to protect the local industries by raising import prices and driving consumers back to local businesses. Trump declared his plan to slap a 25% tariff on imports of steel and a 10% tariff on imports of aluminium on March 1. However, on January 20, 2021, Trump decided to exempt UAE from the aluminium tariff, which U.S. President Joe Biden decided to continue after he came into power.
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