Trump tariffs are buzzkill for U.S. beer giant

The Trump administration’s tariffs on aluminum imports are presenting several options, none of them palatable, to the largest American-owned beer company.

Depending on how much the tariffs push up U.S. premiums on the metal, MillerCoors estimates a hit of more than $40 million to its bottom line. The maker of Miller Lite and Coors Light may have to cut back on investments, new hires, or other costs and expenses — or even raise prices.

“I can’t just go to the shareholders and say, ‘You’re just going to have to accept my profit’s going to be $40 million less,’ ” chief executive officer Gavin Hattersley said in an interview Tuesday. “It doesn’t work that way.”

The tough decisions that the Molson Coors Brewing division must make also face other domestic buyers of the lightweight metal used to make everything from cans to cars. While Commerce Secretary Wilbur Ross says tariffs won’t have a major impact on U.S. businesses, manufacturers beg to differ.

“It’s costing the American consumer,” Hattersley said.

“It’s absolutely not what the president intended, in my view, but it’s a consequence of what he did.”

Molson Coors shares are down 14 per cent since Trump announced plans to slap a 10 per cent tariff on foreign aluminum shipments and a 25 per cent tax on steel imports on grounds of national security.