news 
Aluminum And Steel Tariffs: What Do You Mean My Beer Will Cost More?
As I sat watching the local news, my heart sank when a microbrewer explained that their beer prices would be increasing by $2 per case due to rising costs of aluminum cans. The reason for this hike? A 25% duty on all imports of aluminum and steel into the USA set to take effect on March 12.
The impact hit me hard – 65% of the cost of my beloved beverage comes from these materials alone. That’s a staggering $0.65 per can, multiplied by the percentage increase in tariffs. No wonder I was glued to the TV trying to understand why my favorite libation would soon become more expensive.
But this is not just an isolated issue; the far-reaching consequences of these aluminum and steel tariffs will be felt across various sectors of the economy and international trade relationships. Unfortunately, it’s not just me who will be crying into their drink.
The automotive industry estimates that the cost of a new car could increase by between $4,000 to $12,000, leading to a surge in used car prices as buyers seek more affordable alternatives. This ripple effect will have devastating consequences for manufacturing sectors like industrial equipment producers and household appliance manufacturers, which rely heavily on imported steel and aluminum.
Construction projects are set to become more expensive as increased steel costs slow down activity and decrease demand. The construction industry employs over 10 million Americans, making this impact particularly concerning. As a result, consumer prices are expected to rise, with no end in sight to the financial pain that will be inflicted upon consumers like myself.
However, there is some silver lining amidst the chaos. The recycling sector may benefit from increased demand for domestic metal sources, such as used beverage cans and containers. Additionally, the goal of these tariffs is to boost U.S. steel and aluminum production, which could lead to job growth in these sectors over time.
As I sit here with my newly more expensive beer in hand, it’s clear that these tariffs will have far-reaching consequences across various industries and international trade relationships. Only time will tell if the benefits outweigh the costs for American consumers like me.
