End user sectors concerned over U.S. aluminium tariffs

American industries are expressing concerns over aluminium tariffs since they require aluminium for use in cars, aircrafts, beer, electronic etc. Higher prices of raw materials in the U.S. would lead to higher prices of products. Automakers and other users have already expressed dissatisfaction following Trump’s announcements.

The Beer Institute condemns President Donald Trump’s announcement to impose tariffs on aluminium imports next week. The Beer Institute said the decision will increase the cost of aluminium in U.S and endanger American jobs in the beer industry.

“Aluminium is critical to the well-being of America’s beer industry as more than half of the beer produced annually is packed in aluminium cans or aluminium bottles”, said Beer Institute.

“…this 10% tariff will create a new $347.7 million tax on America’s beverage industry, including brewers and beer importers, and result in the loss of 20,291 American jobs.” 

Toyota Motor Corporation said the decision will adversely impact auto makers by raising costs and prices of cars. Shares of automakers such as Ford, General Motors and Fiat Chrysler Automobiles have fallen post announcemnets.

Bloomberg reported that the move may affect all kinds of products consumed or used in the U.S. from Mac computers to Hershey's Kisses and Bud Light. All end users products that rely on aluminium as raw materials will be expensive as the extra tariff costs will be passed on to the consumers.

New Tariffs will result in increase of about US$0.01 to 0.03 per watt in photovoltaic system costs as the higher costs of steel and aluminium will drive up costs for racking, tracking and mounting system makers as well as PV modules, according to Roth Capital Partners.

President Trump announced plans on Thursday, March 1, to impose 10 per cent tariff on aluminium imports.