Aluminum tariff likely to raise beer can prices

Can't you just feel trump picking the pennies out of the pockets of his supporters...

 

Some day, way in the future, I dream that all wages in the world are at parity and all tariffs are gone. Then things will be made either near the raw materials or near the consumer. This is because I can only foresee shipping costs going up. Of course that "all tariffs gone" thing is a real pipe dream.

 

Curious if they were to pass this 10% tariff on to the consumer, how much of a price increase per can would this equate to?

 

Thanks. So about a penny per can which to me seems fairly negligible particularly when it comes to craft beer consumer purchasing.

 

Don't forget the impact on such things as brewing equipment that has to be replaced, kegs, etc., etc.

 

A penny a can.

Even I can deal with that. A little over reaction maybe?

Get ready for stupid increases blaming it on can prices.

" cans are up 1 penny each, we can now add $5 a case at the wholesale level."

Enjoy

 

How much of the aluminum used for cans or steel for tank/equipment production is imported? Up to 20k jobs could be lost because of the tariffs?! There is virtually no way to quantify that. Excuse me while I grab this grain of salt.

 

It actually can be quantified. But the accuracy of the estimate is a bit hard to be sure of without access to the report and data on which the estimate is based.

 

Currently aluminum is about $1.00 per lb, so it would go up $0.01 per lb. It's about 32 cans per lb of aluminum so the raw materials per can is going up $0.00003125. Man, that tariff is going to hit the consumer real hard.

 

I should say that I did drop out of Economics.

 

That would be us .10 not.01. Yes? 10% tariff.

Enjoy

 

None of this "data" is actually data. It is all headline-grabbing click bait multiplied by political agendas.

We love to buy local when it comes to beer. Cans??? Not so much; there it is all about the money raised to the power of politics.

 

Of course economic equilibrium is perfectible but first we'll have to perfect human beings.

 

Yes and no. Sounds like you're only considering the commodity price on the open market. Doesn't take into account any markups due to distributors, shipping, storage costs, manufacturing of the cans, etc. That's where your costs really go up. For a company like MillerCoors, that sort of markup does have the potential to tick off their fans.
On the other hand, if you're canning beer you're most likely buying in bulk. Leads to the question for craft breweries if they have the margins available to allow them to absorb the higher cost of cans. After all, they will generally have to out of pocket the additional expense before they see an increase in income from raised prices.

 

I was just going off the raw materials price, not the markup. That's a bit harder to calculate.

 

Yessir. Man, I'm an engineer and I missed that, long days at work do that to you. Go ahead and move the decimal point over one place to 0.0003125 per can.