$20 for a Six-Pack?: The Impact of Trump’s Tariffs

Photo via Courtney Iseman

Tariffs are nothing new to the American economy; they have been used by the U.S. government since George Washington signed the Tariff Act of 1789. In theory, they are meant to improve trade, raise revenue for the federal government and protect American manufacturing from foreign competition. 

However, more often than not, it is the American consumers that are taking on the brunt of the costs because imported goods will have higher prices as firms pass on some or all of their increased costs. This effect is expected with President Donald Trump’s tariffs, and fears of rising prices have plagued U.S. headlines ever since they were announced.

In his ‘‘Liberation Day’’ speech on April 2, Trump declared that foreign trade and economic practices have created a national emergency and the tariffs would be a declaration of economic independence. 

The tariffs were initially unveiled in a two-tier structure: a baseline 10% tariff is to be applied to imports from every country with the exception of Canada and Mexico. Additional reciprocal tariffs are to be enacted based on what the Trump administration decides to be ‘‘unfair trade practices.’’

When asked about his motivation for the reciprocal tariffs Trump said, "They do it to us, and we do it to them — very simple. Can't get any simpler than that."

Later, on April 9, Trump announced via Truth Social, an alt-tech social media platform owned by the President, that he would enact a 90-day pause on additional tariffs beyond the base 10% tariff. These will become a subject for debate again after the pause has ended on July 9.

U.S. tariffs on Canada and Mexico will be unaffected by the pause and will be subject to 25% tariffs on goods that don’t comply with the U.S.-Mexico-Canada Trade Agreement in addition to the existing 25% tariffs on steel, aluminum, and cars.

These tariffs will still have an effect on the prices of everyday goods in the U.S., including the cost of America’s favorite drink: beer.

A 25% tariff will be imposed on all canned imported beer and empty aluminum cans — not just those from Mexico and Canada. While it is intended to help domestic steel and aluminum producers, this will likely affect the price of beer and alcoholic drinks across the country as long as the tariffs are in effect. With the price of aluminum cans increasing, domestic beer suppliers could also see their input costs increase, which would likely be pushed onto American consumers.

While beverages made domestically in the U.S. will not be affected, if they are made with aluminum packaging, it is expected that their prices will rise. 

Tramonte Distributing Company, a beer distributor located in Akron, Ohio, distributes popular alcoholic brands such as Miller Lite, Corona, Modelo, and White Claw — all of which are expected to be impacted by the tariffs. Dana Vroman, who manages Tramonte’s Mexican imports, said, “If the price of imports are going to go up, then domestic suppliers will probably raise their prices to match the others if people are already willing to buy the more expensive products.” 

When asked what Tramonte would do about the additional costs, Vroman said, “More likely, they’re going to raise the price if they’re paying more.” This is what many U.S. companies will do when faced with the tariffs; it is not profitable to absorb the additional costs and not pass them down to customers. 

For Ohio U students, where a night out is often budgeted to the dollar, even a small increase could change their habits and Trump’s tariffs are likely to affect their go-to drink choices. Many popular drinks like White Claws, High Noons, Michelob Ultra — essentially any canned beverage — will be more expensive due to the aluminum tariff.  

While there are many questions up in the air regarding Trump’s tariffs, they are unlikely to be answered until the July 9 deadline, and the 25% tariff on aluminum imports will likely remain in effect. For now, Athens consumers should expect an increase in the price of everyday goods imported from Canada, China and Mexico and on products made from aluminum, steel or foreign textiles.

Whether the long-term economic goals of the tariffs will outweigh the short-term impact on consumers remains to be seen.