Donald Trump doesn´t like to drink cheap beer
It seems that Donald Trump despite liking Fast Food, he doesn’t appreciate beer on an aluminum can. The conclusion is drawn from a new rule that rises tariffs on imported steel and aluminum, already set in motion and, according to the president, to sign off next week. The news tariffs on imported steel and aluminum charges 25 percent tariff for steel and 10 percent for foreign aluminum. Of course, the decision has had many objections inside brewery industry and manufacturers that use those raw materials and, no need to mention, among Republicans and Democrats beer lovers and canned food industry that sell vegetables, fruits, beans and other processed foods.
Donald Trump is unquestionably taking protectionist rules to make America once again the main producer and industry in the world. The United States has lost position in the world economy because of China and Russia strength. As part of his nationalism, Trump believes that to increase tariffs will rally US domestic steel and aluminum makers and their shares as well. He plans, as well, to safeguard the jobs in the industry. However, the US president forgets that global and local economy is holistic, and the shares of automakers, airplane makers and can food producers will fell along with the firing of many workers because of the higher costs of the raw materials.
But not only those industries, but US military factories can be compromised. US fighter jets include high-purity aluminum for their production. Even inside the Republicans circle, the measure has been sharply criticized by some lawmakers that think the negative impact on the autos and oil construction equipment.
Companies which have reduced production and the numbers of employees as a result of imports may now have a reason to restart their production lines. On the other hand, The American Automotive Policy Council, which represents General Motors, Ford and Fiat Chrysler, also speak out about it. They addressed a statement that warns the materials’ prices in US compared to what foreign competitors pay, are higher. They consider it a step back in the industry because tariffs on steel and aluminum would have an impact on customers who acquire the final product, like cars, and consequently, in the industry itself that could represent the loss of several jobs.
Ken Simonson, chief economist for the Arlington, Va.-based Associated General Contractors of America, a General Contractor, analyzed that higher tariffs on steel and aluminum’s cost will strike forcefully construction business. Aluminum is used in construction, often in siding and architectural elements and in commercial projects so the cost of every project will be elevated.
But the news is not bad at all. US steelmakers and aluminum domestic producers are very happy because shares in the Stock Market have increased since Donald´s tariffs were announced. Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers' Association, said Illinois has always been proud of its steel history and the new plan would help and inject steel productions at the States. CEO Michael Bless, Chicago-based Century Aluminum, is positive regarding the new measure which will allow rehiring 350 workers and moving the industry forward. Actually, its shares closed up 7.5 percent and US steel and aluminum shares rose up in the stock market too. Investors will take advantage of the steel and other materials stocks to benefit from any potential quarrel with China, the European Union, Canada and other trade partners.
China is not the main affected nation by the tariffs’ increase but Canada, a trade ally of US. Compared to China data showed the 16 percent of Canada steels supplies come from the US while China’s got 2 percent, followed by Brazil and South Korea.
People like to have fun, therefore, they would have paid more for beers because, as it is quite known, these industries trade comes from their production of a tin can. Gavin Hattersley, CEO of Chicago-based MillerCoors, says despite they bought a lot of sheet aluminum from domestic producers the demand is quite superior to the offer. He believes that 10 percent tariff on aluminum would cost the industry $347.7 million and more than 20 000 jobs. Hence, it is quite possible that Trump's rule will give the beer industry the first punch in the face. So, before the beer industry’s knockout happens, let´s get drunk!