President Donald Trump’s ongoing trade war with China has been a disaster for American companies, farmers, and workers, despite his repeated promises that excessive tariffs will bring China to the bargaining table and make them agree to his terms.
One uniquely American business that has been hit especially hard by the trade war is the beer industry, according to Bloomberg:
A report by two trade groups showed U.S. beer-industry jobs dropped 40,000 since 2016 as metal tariffs boosted aluminum-can costs, leading to a drop in investment. The biennial study by the Beer Institute and National Beer Wholesalers Association said direct, indirect and induced jobs fell to 2.19 million in 2018 from 2.23 million in 2016.
Jim McGreevy, the chief executive officer of the Beer Institute, says the tariffs on metals have been a disaster for those who make and distribute the beverage:
“Aluminum tariffs are increasing brewers’ costs and are an anchor on a vibrant industry. Each brewer is deciding for themselves how to absorb that expense, whether it’s raising prices, laying off workers or delaying innovation and expansion.”
Just how bad have tariffs hit beer producers? The shipping and logistics charges for delivering aluminum to the Midwest for a company such as Anheuser Busch have doubled since Trump placed a 10 percent tariffs on all imports of the metal, and that has directly hurt the bottom line of producers:
Molson Coors Brewing Co. estimated last year that the levies would create a $40 million hit to its bottom line.
Before Trump took office, jobs in the beer industry grew by a brisk 27 percent. But since he became president in 2016, the number of beer-related jobs has gone from 2.23 million in 2016 to 2.19 million in 2018.
ShareBlue Media notes that the tariffs have even become known as a tax on beer:
Aluminum makes up more than 11% of the cost of manufacturing beer, according to a 2018 Beer Institute analysis. To make up for the higher cost they must pay, the industry called Trump’s tariff a “tax on beer,” noting that “consumers who choose to drink beer will be people who ultimately bear the cost of this tax.”
A beer industry spokesperson told Bloomberg that she could not place all the blame of the job losses on Trump’s tariffs, but evidence “supports that brewers are making fewer investments because of the added cost of aluminum.”
As he repeatedly proved over his career in real estate, Donald Trump is a terrible businessman. And now he’s on the verge of wrecking the American economy so he can engage in pointless posturing that he believes makes him look tough.
Featured Image Via the BBC