Trump Tariffs May Flatten Arizona's Canned Beverages

Published: Monday, May 13, 2019 - 9:09am
Updated: Monday, May 13, 2019 - 10:48am

On Friday, the Trump administration increased tariffs on $200 billion worth of Chinese imports, from 10 percent to 25 percent. Goods made from imported aluminum and steel are being hit twice — after also being tariffed last year.

For Arizona grocery stores, the additional aluminum tariff is a dent in the canned beverage business.

Some U.S. grocers have been passing on the 10 percent aluminum tariff cost to customers, but that is nearly impossible for Arizona grocery stores, consistently ranked as the most competitive in the country. 

"Where our industry gets impacted is anything that’s made in aluminum cans. The beverage industry in general, whether it’s alcoholic or non-alcoholic, you see the impact by higher beverage prices because the cost of aluminum has gone up," said Tim McCabe, outgoing president of the Arizona Food Marketing Alliance.

The average profit margin of an Arizona grocery store is one percent, before the increased tariff.

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