Tariffs Catch-All

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Trump made all beer more expensive — and no one knows why​

A 25 percent U.S. tariff meant for aluminum caught brewers off guard — after all beer appeared to fall under its scope.

www.politico.eu

Trump made all beer more expensive — and no one knows why

A 25 percent U.S. tariff meant for aluminum caught brewers off guard — after all beer appeared to fall under its scope.
www.politico.eu www.politico.eu

“… Beer appeared quietly Wednesday on a list of aluminum-linked products now potentially subject to a 25 percent U.S. import duty. The move, buried in a bureaucratic annex and part of a broader trade war unleashed by the Trump administration, has left European brewers fizzing with confusion — and drinkers foaming with rage.

The customs code used — “beer made from malt” — appears to cover all beer, no matter how it’s packaged: cans, bottles or kegs. That’s been especially frustrating for brewers, given that most other European food and drink exports were hit with a lower 20 percent tariff — making beer one of the hardest-hit agri-food categories.

… European beer exports to the U.S. topped €1.1 billion last year, with Guinness and Heineken among the bestsellers. About a fifth of that trade, by value, is shipped in cans. The customs code applies globally — so even top exporters like Mexico, which supplies over 60 percent of U.S. beer imports, are hit.

The tariff’s scope has left companies uncertain whether to ship — or sit tight and hope for clarification. Belgian brewers, already operating on tight margins, fear a prolonged standoff.

…
As confusion mounted, the U.S. Commerce Department clarified that the tariff is not intended to apply to the beer itself.

“Tariffs on imported beer only apply to the value of the aluminum content of the beer can, and not to the beer itself,” Jeffrey Kessler, undersecretary at the Commerce Department’s Bureau of Industry and Security, told POLITICO in an emailed statement. “Imports of the empty aluminum cans will be tariffed for their full value.”

… The fallout is domestic, too. Much of the aluminum used in U.S. can production comes from Canada, and American smelters aren’t equipped to produce enough of the alloy used for beverage packaging. …”
 
Futures at -4.2%. Don is looking at 100% culpability for a possible 12% drop in the Dow, over three trading days.

ETA: 13%+ percent drop - apologies. I thought Thursday was 3.5 and Friday 4.5. I was quite off.
 
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