The Impact of Aluminum Tariffs on Canned Beer Prices: A Liquor Store Perspective

As an employee at a local liquor store, I’ve recently witnessed the effects of government policies on consumer goods, particularly with the rise in prices of canned beer—thanks largely to aluminum tariffs. Today, we had to adjust the prices of nearly all our canned beer offerings, increasing them by $1 to $2.50 per pack. This shift has stirred quite a reaction among our customers, especially our loyal patrons.

Customer Reactions

The feedback from customers has been overwhelmingly negative. Many of our regulars are quite vocal about their dissatisfaction, and in my region—a part of the Midwest known for its traditional values—there seems to be a significant contingent of politically active individuals, many of whom support former President Trump. The irony is not lost on me; the beer they often choose—like Busch Light—has become a staple for those who align with his views.

Understanding the Price Changes

When I originally researched the aluminum tariffs, several sources predicted only a minor price increase—around four cents per can. However, these reports were published several months ago, and it appears the true effects of the tariffs are only now becoming apparent. For instance, we’ve seen a notable price jump for popular brands: a 30-pack of Busch Light has risen from about $23 to approximately $26.67, while a 12-pack of aluminum bottles from Miller now costs $15.53, up from $14.03.

Amidst these changes, it’s clear that aluminum cans already represent a significant portion of beer production costs—approximately 11.4%—making this increase particularly impactful for both retailers and consumers alike.

Broader Implications

As a member of the retail workforce, it’s disheartening to see consumers bearing the brunt of these tariffs. The economic principle that a small increase in supplier costs trickles down to retailers, and ultimately to consumers, is being manifested in stark reality. There are predictions indicating consumers could face an increase of $1 or more per 6-pack due to these tariffs, and it remains to be seen how much of this will translate to the average beer drinker.

Interestingly, some economists were quick to point out that even before the formal imposition of the tariffs, aluminum prices in the U.S. had already begun to rise. The Midwest Premium, a key component in aluminum pricing, shot up significantly within hours of tariff discussions being made public.