Trump tariff backlash, Keg company 30% layoff

[struggle4progress]

March 22, 2018

American Keg Company is the only remaining U.S. manufacturer of stainless steel beer kegs. Despite competition from German and Chinese firms, American Keg has only used domestic steel. But now it’s being punished for this domestic sourcing as Donald Trump’s steel tariffs have forced the business to lay off a third of its workforce.

Since it began manufacturing kegs in 2015, the Pottstown, Pennsylvania-based American Keg has operated on a narrow margin. The 15.5-gallon keg is a staple in bars and fraternities, and the American-made version currently retails for $115 while a German or Chinese keg costs about $95. American Keg has survived by selling to craft breweries that want to support U.S. workers and American steel, even at a small premium. “But there’s a limit to what people would pay to have an American product,” says CEO Paul Czachor ...

http://naturalresourcereport.com/2018/03/trump-tariff-backlash-keg-company-lays-off-third-workforce/

[struggle4progress]

1. Hoosier Breweries Worried Tariffs Could Hurt Business

MARCH 23, 2018
BARBARA BROSHER

... The Brewers Association says 98 percent of the metal they use is produced and made into cans in the U.S. But, they worry the tariffs could incentivize an overall rise in aluminum prices.

“We have a contract on our aluminum for the entire year of 2018, so we won’t see any major impact on it until the beginning of next year,” Robinson says. “But, that will be something that once it goes into place and we find out what it’s going to do to the cost of aluminum, we’ll have to find out what that does to the overall cost of beer.”

Smaller Indiana breweries like Taxman Brewing in Bargersville are more likely to feel the immediate impact of the tariffs. About half of the beer Taxman produces every year is canned ...

https://www.wfyi.org/news/articles/hoosier-breweries-worried-tariffs-could-hurt-business

[Arazi]

2. Kick

[Angry Dragon]

3. I am confused here

If I use American steel why would my steel prices go up??
German and Chinese prices would go up and make my product be a better buy??

[Trust Buster]

6. American steel companies now can raise their prices because of tariff relief. And they will.

[ooky]

10. There are actually two big issues the American Keg Company will face.

The first, as explained in the linked article, is the American Steel companies now get the opportunity to raise their prices since they don't have to competitively keep it low.

The second, the article pointed out they are already charging more for the kegs than foreign keg competitors. If they have to raise their keg price to cover their new steel increases, their customers will be more likely to purchase the lower priced kegs from their foreign competition, unless of course a tarriff is also placed on the foreign kegs.

[irisblue]

4. I heard an interview on NPR this afternoon w/ the company owner.

He drank trumps kool aid.

[democratisphere]

8. Can't wait to hear about the hangover the owner gets from that!

[ProudLib72]

5. Craft breweries?

Fuck that shit. Pabst Blue Ribbon!

[democratisphere]

7. PBR ain't real beer. It's an American excuse for beer.

[ProudLib72]

9. Can't you see Frank saying that, though?

It's how I imagine trumpanzees reacting to the news.