Proposal to increase tariffs could hurt metro Atlanta breweries - CBS46 News

Proposal to increase tariffs could hurt metro Atlanta breweries

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Source: WGCL Source: WGCL

When it comes to packaging beer, Monday Night Brewing in Atlanta chooses cans over bottles. But the decision to import their aluminum and steel from Mexico could end up costing the brewery big bucks.

That's because President Donald Trump recently announced new tariffs on imported steel and aluminum. Products Monday Night Brewing CFO Drew Smith says helps build his brand.

"Our cans come from Mexico. We ship them by the truckload and it will certainly hit us in the pocket. And it could end up hitting the consumer in the pocket," says Smith. "Our fermentation tanks, and we've got 13 of them, all come from Canada. Stainless steel from Canada."

According to the Beer Institute, a trade association of the American Brewing Industry, Trump's proposed taxes on imported steel and aluminum could cost the American beverage industry hundreds of millions of dollars and put tens of thousands of people out of work. That's something Drew Smith is keeping an eye on.

"There will be decisions that will have to be made on where the dollar goes. If you're paying more for tanks and cans," says Smith.

The increased cost for beer could go up one or two cents a can. For a business like Monday Night Brewery, who uses millions of cans a year, it all adds up. And that extra cost could be passed on to the consumer.

"It will impact infrastructure decisions for us. It could impact personal decisions. It's just something that we need to keep on eye on and see what the costs are and who ultimately bears the brunt of those costs," continued Smith.

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