It's enough to make you drown your sorrows in an ice-cold American piss water!
A report by the Beer Institute and the National Beer Wholesalers Association says the beer industry has lost 40,000 jobs since 2016. The report blames the losses on metal tariffs put in place by the Trump administration, which increased the price of aluminum cans, leading to a decline in works from 2.19 million in 2018 from 2.23 million.
"Aluminum tariffs increase brewing costs and are an anchor on a living industry," said Jim McGreevy, president of the Washington Beer Institute, in a statement. "Each brewer decides for himself how to absorb this expense, whether it increases prices, puts off workers or delays innovation and expansion."
The amount it costs to bring aluminum to the US for use in boxes doubled when Trump put a 10 percent tariff on metal imports, the industry said. Molson Coors Brewing Co. said the charges would take a $ 40 million bite out of their profits.
The decline in beer profits cannot be just the administration's fault. All sales of spirits, including wine, beer and spirits, fell by 0.0 percent in 2018 for the third consecutive year. Many drinkers apparently shift towards eating wine and spirits over beer, so that the industry was more severely affected by the decline in alcohol consumption overall.
A spokeswoman for the beer industry told Bloomberg that although the tariffs are not "100 percent" to blame for industry losses, there is reason to believe that "breweries make fewer investments because of the added cost of aluminum." The year before tariffs were put in place, beer jobs had grown by 27 percent.
Nevertheless, not all bad news. Some areas of the industry are still growing, with brewing working up 8 percent. The report is attributed to the "enormous growth in micro and brewpub employment, as well as growth in higher margin products from all breweries."
And Things Can Look Up Soon: The Trump administration recently agreed to lift the aluminum prices on Canada and Mexico as part of the US-Mexico and Canada agreement. We will all make keg stand in a short time.