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U.S. food and beverage companies have asked the Trump administration not to impose tariffs on import

  • Author:Dong Xing
  • Release on:2018-02-28
It is learned that the major food and beverage companies and industry associations in the United States have asked President Trump and his government not to impose tariffs or impose import restrictions on the import of primary aluminum, 3004-O aluminum plate and scrap aluminum.

According to them, a 10% aluminum tariff would cost brewers and beverage producers $ 256 million, a tariff of 20% would cost $ 512.5 million and a 30% tariff would cost $ 768.8 million. Tariff increases will increase manufacturing costs, jeopardizing the beverage industry.

Susan K. Neely, president and chief executive officer of the American Beverage Association, said: "Artificial price increases for U.S. companies employing millions of people will weaken the economy and help families work by raising prices, reducing employment and reducing income inequitably cause some damages.

Jim McGreevy, president and chief executive of the Institute of Beer, reiterated that importing Aluminum foil for household 1235 and paperboard consumed in the beer industry would not threaten national security.

This letter underlines the importance of aluminum in the beer industry, as more than half of the beer produced annually is packaged in aluminum cans or bottles. They argue that any trade restrictions on the import of primary aluminum or cans disrupt the market and increase the costs of winemakers and beer importers. They urged the government to consider the chain reaction of aluminum cans and primary aluminum transactions in the supply chain.
If supplies of aluminum are hampered by unnecessary tariffs or trade restrictions, it could lead to under-supply and affect product availability, "added Robert Budway, president of the Canning Manufacturers Association.

They demanded that the U.S. aluminum can industry produce 96 billion food, beverage and aerosol containers and employ more than 11,000 U.S. workers to create economic activities valued at 13.3 billion U.S. dollars. The beer industry will create more than 2.2 million jobs in the United States, generating more than $ 350 billion a year in revenue.

The demand shows that in 2016, 56% of domestically produced beers use aluminum cans or bottled. The non-alcoholic beverages industry direct jobs nearly 240,000 jobs. The US primary aluminum market has been at a loss as a result of strong demand and has become an import-dependent due to a decline in aluminum output over the past two decades. Canada accounted for 60% of the total non-forged aluminum imports in 2016 while the remaining countries did not import more than 10% per year.

On Friday, January 19, 2018, Minister Ross formally submitted the findings of the survey to investigate the impact of 3003H14 aluminum foil imports on U.S. national security. The president will decide by April 20 whether to take any possible action based on the findings.

Some of the major companies and trade associations that signed the letter include: American Beverage Association, Ardagh Group, Boer, Beer Institute, Brewers Association, Cannery Manufacturers Association, Coca-Cola Company, United States HEINEKEN, National Association of Beer Distributors , Pepsi North America and more.