A number of small scale end user industries in the U.S. will end up increasing the cost of their products to adjust Donald Trump's 25% and 10% tariff on steel and aluminium import. As we have said earlier, craft beer or cider industry fears they would have to increase the price of beer and cider cans if imported aluminium becomes expensive.
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Justin Heilenbach, president and co-founder of Citizen Cider, Burlington says if the cost of aluminium cans goes up, that could be passed on to the consumers. The same goes for the price of kegs, which are made out of steel.
Andrea Gagner, CEO of 14th Star Brewing in St. Albans cans most of the beer they produce and they are still not sure how they would manage the extra cost if their can suppliers increase the prices
Gagner said if aluminum prices go up, it will mean a choice between a smaller profit margin or passing on the cost to consumers.
“With the amount of really great craft beer out there, the profit margins aren’t huge to begin with,” Gagner said.
Even if steel and aluminum prices go up, companies did just get a significant tax cut and so they see no chance of balancing out the potential costs of aluminum and steel tariffs.
Donald Trump's 25% tariff on steel and 10% tariff on aluminum are also expected to increase costs for the StarKist & Co cannery in American Samoa.
The Can Manufacturers Institute estimates tariffs will increase the cost of 115 billion food, beverage and aerosol cans in the US by nearly 1%, or $1.5bn. Notably, 60% of primary aluminium used in beverage cans is imported by domestic producers.
Aumua Amata Radewagen, American Samoa delegate for the US House of Representatives, has been discussing with StarKist Samoa, the largest tuna canner in America Samoa, owned by South Korea's Dongwon Industries, about the impacts of tariff increase.
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