Congressman Ron Kind toured a local beverage packaging plant Tuesday afternoon to assess any impact thus far of aluminum tariffs.
The Trump administration imposed tariffs on aluminum and steel on June 1 of this year. Since American companies don’t produce enough aluminum to meet demand, many companies that use it have to continue to import it and pay the 10% tariff.
Crown Beverage Packaging employs 115 people and puts out six million aluminum cans each day for soda, beer energy drink products. Aluminum tariffs haven’t quite had the effect that steel or retaliatory tariffs on American farm products have had, but long term they could cause price increases as much as 12%.
"I think tariff wars don’t work for anyone," Kind said. "They increase the price for businesses, for farmers, for consumers alike. Not only that, but if you’re in the export business, you start losing market share because of the retaliation against our products."
The price increase may not translate to significantly higher prices for consumers but Kind said it could lower the aluminum beverage industry’s competitive edge against the plastics industry.