A recent front-page story highlighted concerns over potential beer price increases due to a tariff imposed by former President Donald Trump on Canadian aluminum. The report suggests the tariffs will significantly raise costs for brewers, but this view may be overstated, according to industry analysis.
Approximately 80 percent of aluminum used in the United States is recycled, with the remainder primarily sourced from Canada. The cost of a single can is around 10 cents, and a 25 percent tariff would increase the cost by roughly 2 cents per can.
For smaller breweries, particularly those in Maine that purchase finished cans due to their limited volume, the impact may be less significant. A storage unit measuring 10 feet by 20 feet, which rents for $150 per month, can hold about 78,000 empty cans. If a brewer were to store these cans for five months, the cost of storage would surpass the 2-cent increase in can prices.
Even if the price increase were doubled, it would only account for a 1 to 2 percent rise in the overall cost of the cheapest beer. This analysis calls into question the magnitude of the price hikes suggested by recent reports, which may not accurately reflect the actual impact on beer prices.
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