More than $126 billion in beer is sold in the United States a year, much of it in aluminium cans, and the beer industry is not happy. President Trump’s looming 10% tariff on aluminum poses the latest threat. The Trump administration has said that a flood of metals from other countries pose a threat to national security, and that the tariffs can help bolster domestic industries. However analyst say the tariffs will drive up cost for products using aluminum. Beer manufactures say they use domestic sheet aluminum whenever they can, but there is simply not enough supply for the market using just aluminum manufactured in the U.S. Furthermore they say the tariffs will drive up the cost of their product and may lead to thousands of layoffs. Aluminum users are not the only companies complaining about the the tariffs. Overseas steel is also being targeted. The administration is proposing tariffs as high as 25% on imported steel. About one-third of the 100 million tons of steel used each year by American business is imported. About 17 million Americans work in industries that use domestic steel — 6.9 million in manufacturing and 10.1 million in construction, according to the Bureau of Economic Analysis. These include auto and aerospace companies which have seen declines in recent years, with the auto industry reporting drops in their shares after news of the tariffs were reported. Scores of industries could face unexpectedly higher costs because of the administration’s decision. Even candy makers such as Hersey’s would be affected, using hundreds of miles of foil to wrap it’s chocolate kisses. Earlier this week, President Trump’s top economic adviser, Gary Cohn said he will be resigning. Although administration officials say there is no singe factor in Mr Cohn’s tendered resignation, it is widely believed his decision to depart was based on his inability to persuade the administration on the perils of starting a trade war and the consequences that the tariffs would have on the U.S economy. President Trump express gratitude for the chief economic adviser service saying;
“Gary has been my chief economic adviser and did a superb job in driving our agenda, helping to deliver historic tax cuts and reforms and unleashing the American economy once again. He is a rare talent, and I thank him for his dedicated service to the American people.”
Mr. Cohn is expected to leave within the next few weeks.
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