Canada Anxious About Trump's Proposed Tariffs on Steel and Aluminum

choi

(1) Catherine Porter and Ian Austen, Stung by Plan for Tariffs, Canada Takes Deep Breath; Trudeau seeks to cajole Trump back from the edge of trade war. New York Times, Mar 3, 2018
("Of all countries that could feel the sting of President Trump's proposed tariffs on steel [rate: 25%] and aluminum [10%] imports, Canada * * * is at the top of the list because it is the No 1 exporter of both to the United States.  

Excerpt in the window of print: Tensions have grown between America and its closest ally.

(2) Kevin Granville, A 'Beer Tax'?  Metal Tariffs Will Ripple, Brewers Say. New York Times, Mar 3, 2018.
https://www.nytimes.com/2018/03/ ... ariff-beer-can.html

Quote:

"More than $100 billion in beer is sold in the United States a year, much of it in aluminum cans (the report doe snot say how many cans of beer are sold in US; packaging is mostly of 12 or 16 fluid ounces, and 24 oz rarely].

"Beverage makers love aluminum cans because they chill quickly, stack easily and keep light out (something that's especially important for beer). New production techniques mean the cans can be made with less and less aluminum. The wall of a can is 0.097 millimeters thick — about as thick as a human hair.

"Aluminum produced in the United States would not be subject to the tariff, but America imports most of its aluminum. In 2016, 52 percent of aluminum for domestic consumption was imported, up from 11 percent in 2012, according to Interior Department statistics. Canada is the leading source. * * * A typical aluminum can contains 70 percent recycled metal, the Aluminum Association said.

""The Beer Institute, a trade group, said the 10 percent tariff on imported aluminum would amount to a $347 million tax on the beverage industry. It estimated that higher expenses and lost sales would force the layoff of about 20,300 workers.

"A beer can [just the can] cost about 10 cents to make, the Beer Institute said.  In the unlikely event that the can is made entirely of imported aluminum — no recycled or domestic content — the 10 percent tariff might add a penny to the cost. or 6 cents to a six-pack [that is because the proposed 10 tariff rate and it costs 10 cents to make a can before the tariff]. That's probably not enough to drive away many beer drinkers.

My comment: There is no need to read either report.