Aluminum tariffs impacting local breweries - WLBT.com - Jackson, MS

Aluminum tariffs impacting local breweries

Mississippi continues to open its arms to local breweries, but President Trump's tariffs on steel, and particularly aluminum, could hurt the growing industry here and nationwide. Source: WLBT Mississippi continues to open its arms to local breweries, but President Trump's tariffs on steel, and particularly aluminum, could hurt the growing industry here and nationwide. Source: WLBT
Industry estimates say a 10 percent tariff on aluminum imports could raise the price of a case of canned beer almost 25 cents, and cost the beer industry over $300 million annually. Source: WLBT Industry estimates say a 10 percent tariff on aluminum imports could raise the price of a case of canned beer almost 25 cents, and cost the beer industry over $300 million annually. Source: WLBT
Lucky Town buys their cans in bulk: 225,000 at once. Their latest shipment arrived about a month ago, an entire semi-truck filled with aluminum cans. Source: WLBT Lucky Town buys their cans in bulk: 225,000 at once. Their latest shipment arrived about a month ago, an entire semi-truck filled with aluminum cans. Source: WLBT
Simmons says the shipment of cans cost Lucky Town about $20,000 and any increase cost further complicates the balancing act for a small business. Source: WLBT Simmons says the shipment of cans cost Lucky Town about $20,000 and any increase cost further complicates the balancing act for a small business. Source: WLBT
JACKSON, MS (WLBT) -

Mississippi continues to open its arms to local breweries, but President Trump's tariffs on steel, and particularly aluminum, could hurt the growing industry here and nationwide.

Lucas Simmons is the president and brewmaster of Lucky Town Brewing Company in Jackson. He, and others with the Brewers Association, were in Washington last week, when they found out their cost of business was likely going up thanks to imports on foreign steel and aluminum.

READ MORE: New aluminum tariffs could hit beer drinkers

“Aluminum prices vary a good bit, which can vary a few cents per can,” says Simmons. “Which may not sound like much but when you’re talking 10,000 to 16,000 cans in a week, that adds up very, very quickly.

Industry estimates say a 10 percent tariff on aluminum imports could raise the price of a case of canned beer almost 25 cents, and cost the beer industry over $300 million annually.

Simmons says most breweries purchase cans from one of three American manufacturers, but even those manufacturers really on foreign imports.

“A lot of it (aluminum) comes from Canada and the European Union,” says Simmons. “So you start putting these heavy tariffs on it, it’s going to feed down exponentially to us, which will then feed down exponentially to the consumer and I don’t think anybody really wants that.”

Lucky Town buys their cans in bulk: 225,000 at once. Their latest shipment arrived about a month ago, an entire semi-truck filled with aluminum cans. Simmons says the shipment of cans cost Lucky Town about $20,000 and any increase cost further complicates the balancing act for a small business.

“Anytime we have to raise our prices any, it just takes us a little out of that competitive market,” says Simmons. “And we sure don’t want that. We don’t want to raise the cost of our product to the consumer. We have to eat that margin a lot of times, but there’s only so much we can eat.”

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