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Utopia Talk / Politics / 8.6% tariff on German beer kegs
Fri May 31 04:49:04
Trump mad?!


The latest front on the trade wars over imported foreign steel may be the tap at your local brewpub.

On Wednesday, the federal government imposed tariffs on imported beer kegs from China, Germany and Mexico, a cost that could raise the price of kegs used by the state's growing mircobrewery industry.

The U.S. Commerce Department is slapping an 80 percent tariff — a form of tax — on kegs imported from China, which each year ships hundreds of thousands of kegs into the U.S. Smaller taxes were imposed on kegs from Mexico (18.5 percent tariff) and Germany (8.6 percent tariff).

The taxes will hit the bottom line of a brewery industry that has seen rapid growth in the state this decade, after Gov. Andrew Cuomo pushed legislation in 2013 to stimulate small-scale brewing.

"This tariff is going to be an added cost that breweries probably won't be able to absorb. It will have to be passed on to customers," said Paul Leone, executive director of the New York State Brewers Association, which represents 434 breweries spread through all of the state's 62 counties.

He said a larger brewpub, like Druthers, which operates locations in Saratoga Springs, Albany, and Schenectady in the Capital Region, can have an inventory of up to 1,000 beer kegs, while smaller breweries can utilize several hundred.

"This cost on keg prices is something that could be showing up at the tap," said Leone.

Brewing has become a $5.3 billion economic force in the state, employing nearly 20,000 people, according to association figures.

In the four-county Capital Region, there are 26 breweries that are responsible for nearly 900 jobs, almost $60 million in wages, and about a quarter-billion dollars in economic impact, according to the association.

The new tariffs on kegs stem from a trade complaint from the sole U.S. maker of kegs, Pennsylvania-based American Keg, which uses domestic steel in its manufacturing.

Company officials said efforts to grow its business were making progress until late 2017, when its U.S. suppliers of steel began raising prices in response to tariffs imposed on imported steel by the administration of President Donald J. Trump.

"These tariffs cause confusion and shortage in the supply stream (of steel), as importers stop incoming shipments to the US, and the resulting shortage causes price increases," according to a notice on the American Keg website.

This forced up costs and slowed sales at American Keg, which cut its staff by nearly a third, according to the website.

"If the American government places a tariff on the finished kegs we import from overseas that is equivalent to the already-announced raw steel tariff, we'll be fine. This levels the playing field," the company wrote. "Otherwise, we are in deep trouble.
Fri May 31 06:19:41
EU, China, Russia, Mexico and everyone else who wants to join should tariff the ass out of Trump’s USA.
Fri May 31 15:44:54
Was a time when the US didn't have an income tax and the government was funded by the tariffs we placed on goods coming from other countries.

Tariffs are not always a bad thing.
Fri May 31 17:20:38
So, instead of a tax on income, you do it all with a tax on consumption that would be largely regressive by either hiking the cost of basic goods that account for a larger portion of income; either by taxing cheap imports or putting a floor under imports allowing domestic production to put more?

Only dummies think the exporter pays tariffs. The domestic consumer pays it.
Fri May 31 20:32:19
I know who pays for it and a lot of people that advocate for the rich paying more are calling for a national sales tax. Their reasoning is the rich buy more so they will be paying more.

The tariffs being passed along would accomplish much that same thing.

As I said earlier the government used to get all it's funding from tariffs. At the level of government spending we have now it wouldn't work but the government spends way to damn much.

And not all tariffs are bad.
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