On Wednesday, April 2nd, the White House finally came out with its comprehensive tariff policy, it’s been promising since president Trump took office. The policy states a 10% minimum tariff on countries outside Canada and Mexico with special higher rates for roughly 60 other nations. One of the unexpected repercussions of these tariffs - the price of beer. Yair Ben-Dor has more.
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00:00On Wednesday, April 2nd, the White House finally came out with its comprehensive tariff policy
00:06it's been promising since President Trump took office.
00:09The policy states a 10% minimum tariff on countries outside Canada and Mexico with special
00:16higher rates for roughly 60 other nations.
00:19One of the unexpected repercussions of these tariffs, the price of beer.
00:24The Budget Lab reports, we can expect a rise in consumer prices of roughly 1.3% in the
00:31short run, assuming there will be no policy reactions from the Federal Reserve.
00:37This is equivalent to a loss of purchasing power of $2,100 per household on average,
00:44which will ultimately translate to the price of alcohol going up.
00:48According to WTOP News, brewery owners are among the many small businesses affected by
00:53Trump's tariffs.
00:55Bill Butcher, the founder of Port City Brewing Company in Alexandria, Virginia, says his
01:01craft brewery depends on Pilsner malt from Canada, which he's been using in the company's
01:07beers since it was founded in 2011.
01:10A 25% tariff on a key ingredient in his beer will clearly hurt his business, which will
01:17result in him having to raise his prices and many other breweries will follow suit, which
01:23means we might see an increase from about $12.99 per six pack of beer to around $18.99.
01:32Twenty bucks for a pack of beer?
01:35That most likely won't sit well for a lot of American drinkers.