While many brewers are starting to see the effect of the Craft Beverage Modernization and Tax Reform Act that is part of the current Federal budget and runs through next year, saving brewers anywhere from a few thousand to several million dollars per year, there now appears to be a new worry on the horizon.
Last week the U.S. Department of Commerce recommended to the White House a series of tariffs on imports of aluminum and steel. If acted upon these could have a significant impact on American businesses, including the beer industry where stainless steel is the dominant metal in brew houses and aluminum, the material used for cans.
The report found, among other things, that:
- Aluminum imports have risen to 90% of total demand for primary aluminum, up from 66% in 2012.
- The United States is the world’s largest importer of steel. Our imports are nearly four times our exports.
- On an average month, China produces nearly as much steel as the U.S. does in a year. For certain types of steel, such as for electrical transformers, only one U.S. producer remains.
- From 2013 to 2016 aluminum industry employment fell by 58%, 6 smelters shut down, and only two of the remaining 5 smelters are operating at capacity, even though demand has grown considerably.