A Vancouver beer company is planning for a price increase on their cans as tariffs on steel and aluminum go into effect.
“At the end of the month, we’re currently planning that the price of our cans will go up about 10 per cent just because of the increase in the price of aluminum, and then another 25 or 50 per cent tariff on top of that, which we don’t know exactly what that will be right now,” Adam Henderson with Superflux Beer Company told Global News.
“So that’s pretty substantial.”
Superflux uses aluminum cans, which are free trade products.
Canadian aluminum is turned into cans in the U.S. and sold back to Canadian businesses to sell to consumers.
Tariffs implemented by U.S. President Donald Trump and the counter-tariffs promised by the Canadian federal government are driving up costs and uncertainty.
On Tuesday, the trade war ratcheted up with Trump initiating another round of whiplash as tariff policy changed three times in a span of less than eight hours.
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First, the president posted on social media that tariffs on aluminum and steel were going to double on Wednesday from the proposed 25 per cent to 50 per cent.
That move was in response to Ontario Premier Doug Ford’s announced surcharge on Ontario electricity exports.
Later in the day, Ford said his government was suspending its 25 per cent surcharge on electricity exports to three U.S. states after securing a meeting in Washington with the commerce secretary.
Trump then stated tariffs on aluminum and steel would stay at 25 per cent as of 9:01 p.m. PT on Tuesday.
Economists say the constant back and forth is causing everyone from small local operators to huge multinational companies to put the brakes on new investment.
“One of the effects of that is that it is absolutely dampening investment and it is slowing down decision making in a lot of companies,” Jock Finlayson, chief economist with the Independent Contractors and Businesses Association said.
According to estimates, Canada exports $35 billion a year worth of steel and aluminum to the U.S.
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B.C. brewery says cost of cans will increase by end of the month under U.S. tariffs
