Beer CEOs Call Out to Biden Regarding Aluminum Tariffs

Last week, four top producing beer companies called out to President Biden to slash tariffs on aluminum imports as a way to fight inflation.

According to the article in The Hill, in a letter to Biden, Gavin Hattersley, president and CEO of the Molson Coors Beverage Company; Brendan Whitworth, CEO of Anheuser-Busch; Jim Sabia, president of the beer division of Constellation Brands; and Maggie Timoney, CEO of Heineken USA, praised the administration’s openness to combating inflation by curbing tariffs, but warned aluminum tariffs are still increasing consumer prices.

“While our industry is more dynamic and competitive than ever, aluminum tariffs continue to burden breweries of all sizes,” the brewers wrote under the banner of the Beer Institute, the industry’s national trade association.

“Eliminating the tariffs will alleviate pressure and allow us to continue our vital role as strong contributors to this nation’s economy,” added the executives.

While tariffs on Canadian and European aluminum have either been eliminated or reduced, U.S. tariffs on other sources of the metal are still significant enough to distort prices.

“We applaud your Administration’s efforts to negotiate lifting tariffs off individual countries. However, those efforts to provide economic relief to American consumers have no effect if end-users — such as U.S. brewers — are charged a tariff-burdened price regardless of whether the metal should be tariffed based on its content or origin,” wrote the brewers.

According to the brewers, the industry has paid more than $1.4 billion in aluminum tariffs since former President Trump imposed Section 232 tariffs in 2018.

“Just as concerning is that of the $1.4 billion ostensibly paid in tariffs, 92% did not go to the U.S. Treasury,” said the brewers..

“These tariffs reverberate throughout the supply chain, raising production costs for aluminum end-users and ultimately impacting consumer prices.”