Tariffs on metal may affect price of beer

As President Donald Trump announced sweeping trade tariffs on imported steel and aluminum, raising the specter of a possible trade war, one question has repeatedly come up: Will Americans drink less beer?

More than $100 billion in beer is sold in the United States a year, much of it in aluminum cans. And the industry has argued that proposed tariffs, up to 10 percent on aluminum, would amount to an unintended tax. It said people would lose their jobs as a result, and that higher prices for a sixpack could drive beer drinkers elsewhere for their refreshment.

The Trump administration has said that a flood of metals from other countries pose a threat to national security, and that the tariffs can help bolster domestic industries.

Aluminum produced in the United States would not be subject to the tariff, but the U.S. imports most of its aluminum. In 2016, 52 percent of aluminum for domestic consumption was imported, up from 11 percent in 2012, according to Interior Department statistics. But a typical aluminum can contains 70 percent recycled metal, the Aluminum Association said.

The Beer Institute, a trade group, said the 10 percent tariff on imported aluminum would amount to a $347 million tax on the beverage industry. It estimated that higher expenses and lost sales would force the layoff of about 20,300 workers.