American brewery, beer
President Trump’s new tariffs could lead to higher beer prices. How will this affect the president’s re-election bid? | Image: REUTERS/Francois Lenoir
  • Markets awoke Tuesday morning to news of more Trump tariffs.
  • Brazil and Argentina are the latest front in the trade war.
  • Trump says the tariffs will protect American farmers from a weakening Real and Peso. But they could end up spiking the price of beer.

Donald Trump announced new tariffs on aluminum and steel imports from Brazil and Argentina. The president says Brazil and Argentina’s currency devaluation is hurting American farmers. So he’s striking back with steel and aluminum tariffs until the South American countries tighten up the spigots.

Trump Tariffs: Bitter Beer News

We estimate $347 million additional cost on American brewers because of these tariffs… and upwards of 20,000 jobs could be lost in industries that are involved in our supply chain. -James McGreevy, Beer Institute President and CEO

The news sent the stock market reeling, reversing the Dow’s early Monday morning gains.

But investors might not be the only ones hit in the pocket book by more Trump tariffs. A six pack of cold brews could set drinkers back more money if aluminum prices rise.

The president of the Beer Institute went on a media tour last year to warn of rising beer prices due to the Trump tariffs. Maybe his warning worked.

Brazil and Argentina got exemptions from May 2018’s 25% steel tariffs and 10% aluminum tariffs. But now that Trump’s threatening to levy them again, the price of beer could rise. The U.S. imports nearly half a billion dollars worth of aluminum a year from Argentina.

Would Blue Collar Voters Revolt?

donald trump tariffs on brazil argentina
Source: Twitter

Trump also essentially told the Federal Reserve that he’s doing their job for them. It’s an interesting insight into the president’s thinking. The Trump tariffs are calculated to accomplish what he thinks lower interest rates should. Maybe he wasn’t thinking about inflation of consumer prices, like the cost of beer.

Way to hand working class heroes like Elizabeth Warren, Bernie Sanders, and Alexandria Ocasio-Cortez another talking point. Trump’s last election victory hinged on support from blue collar workers. Maybe Trump can spin higher beer prices as his way of looking out for their health.

This article was edited by Sam Bourgi.

You May Also Like

Elon Musk’s Inspiration for the Lame Cybertruck Was a James Bond Movie

The Tesla Cybertruck may have been inspired by some cool vehicles, but that doesn’t mean truck-owners will get on board with the design.

5 Reasons McDonald’s Chicken Sandwich Won’t Be a Chick-fil-A Killer

McDonald’s joins the chicken sandwich wars with the Crispy Chicken Sandwich, but it will be no match for Chick-fil-A’s product or brand.

Billionaire Ray Dalio: US Empire Fading as Shanghai Becomes World Financial Hub

Ray Dalio believes that the U.S. empire is losing steam. China is on the rise, and if the trade war goes awry, it will lead to chaos.

Hey Larry Page & Sergey Brin, You Forgot to Sign the Giving Pledge on Your Way Out

Larry Page and Sergey Brin’s fans will be disappointed as they leave Google. So will Bill Gates and Warren Buffett, but for different reasons.

YouTube Rewind 2019 Is the Blandest Thing on the Face of the Planet

YouTube Rewind 2019 is here, and it is the blandest video that has ever existed.

Tesla (TSLA) Insiders are Not Buying Elon Musk’s Robo-Taxi Pipe Dream

Tesla insiders know Elon Musk’s promise of launching robo-taxis in 2020 is going to fall flat on its face and are dumping shares.