Beer Institute joined Can Manufacturers Institute. and American Beverage Association to send a letter to President Donald J. Trump requesting that he not impose tariffs or import restrictions on cansheet, primary aluminum, and scrap
The letter notes a 10% tariff on aluminum would cost beer and beverage producers $256.3 million, a 20 percent tariff would cost $512.5 million, and a 30 percent tariff would run $768.8 million.
“Imposing an artificial price hike on American companies that employ millions of people will weaken the economy and hurt working families by raising prices, costing jobs and reducing incomes unfairly,” said Susan K. Neely, American Beverage Association President and CEO. “Tariffs on our companies’ imports of primary and cansheet aluminum will greatly increase our manufacturing costs and harm many more workers than it helps.”
“Imports of primary aluminum and cansheet used to manufacture beer cans do not threaten national security,” said Jim McGreevy, Beer Institute President and CEO. “Aluminum is critical to the beer industry and its employees, since more than half of the beer produced annually are packaged in aluminum cans or aluminum bottles. Any trade restriction on primary aluminum or cansheet imports would disrupt the market and increase costs to brewers and beer importers as aluminum customers.”
“The administration should take into consideration the unintended consequence of a trade action against aluminum cansheet and primary aluminum that would ripple across the supply chain. Like most industries, can makers depend on predictability in supply and price. If the aluminum supply is hindered by unnecessary tariffs or trade restrictions, it could lead to supply inefficacies and affect product availability,” said Robert Budway, Can Manufacturers Institute President. “Even a small tariff will result in greater uncertainty about prices, supply, financing and would dramatically curtail investment and hiring in the United States.”
Other signators include Constellation Brands Beer Division, Crown Holdings, Heineken USA, Molson Coors Brewing Co., National association of Beverage Importers, National Beer Wholesalers Association and Rogue Ales.