Well, let’s see now . . .
Remember Amy Carter??
I wonder whether she thinks it speaks to her when she’s deepest in despair . . .
I wonder whether she thinks it speaks to her when she’s deepest in despair . . .
Well, let’s see now . . .
According to the Aluminum Association, an empty 12 ounce/375 ml aluminum beverage can weighs just under 15 grams.
A metric ton (tonne) of aluminum (1000 kg) could produce (1000 E+03/15.0) = 66,667 cans.
The current LME cash price for aluminum appears to be $2200/tonne
The cost of the pure aluminum in each can would be ($2200/66667) = $0.033
For a six-pack, the pure aluminum would cost 6*.$.033 = $0.198
For a twelve-pack, the pure aluminum would cost $0.396
For a 24-can case, the pure aluminum would cost $0.792
If a 10% tariff is applied to PRC metal, let’s say that the price for a tonne of aluminum would increase from $2200 to $2440.
The price for the pure aluminum in each can would be ($2420/66667) = $0.0363
For a six-pack, the pure aluminum would cost 6*$.0363 = $0.2178
For a twelve-pack, the pure aluminum would cost $0.4356
For a 24-can case, the pure aluminum would cost $0.8712
It costs no more to ship, melt, alloy, purify, cast, roll, cut to length/width, coat, pack, and ship can sheet made from $2440/tonne aluminum than it does for $2200/tonne aluminum.
Well, let’s see now . . .
According to the Aluminum Association, an empty 12 ounce/375 ml aluminum beverage can weighs just under 15 grams.
A metric ton (tonne) of aluminum (1000 kg) could produce (1000 E+03/15.0) = 66,667 cans.
The current LME cash price for aluminum appears to be $2200/tonne
The cost of the pure aluminum in each can would be ($2200/66667) = $0.033
For a six-pack, the pure aluminum would cost 6*.$.033 = $0.198
For a twelve-pack, the pure aluminum would cost $0.396
For a 24-can case, the pure aluminum would cost $0.792
If a 10% tariff is applied to PRC metal, let’s say that the price for a tonne of aluminum would increase from $2200 to $2440.
The price for the pure aluminum in each can would be ($2420/66667) = $0.0363
For a six-pack, the pure aluminum would cost 6*$.0363 = $0.2178
For a twelve-pack, the pure aluminum would cost $0.4356
For a 24-can case, the pure aluminum would cost $0.8712
It costs no more to ship, melt, alloy, purify, cast, roll, cut to length/width, coat, pack, and ship can sheet made from $2440/tonne aluminum than it does for $2200/tonne aluminum.
The Aluminum Association, which consists of the American aluminum industry, which would stand to gain from such tariffs? Is that the source you want to believe when they say "it's not a big deal?"
Well... The only other source of information I've seen in this thread was a cartoon. You want to post some real information with a source, and refute that?
"A tariff or quota will immediately disadvantage these domestic businesses since foreign competitors would have the advantage of not paying an artificially inflated raw cost," the letter read. "We estimate a tariff of 10% on this aluminum would cost beer and beverage producers $256.3 million."
So if the price of a can increases by a penny or two, the price of a sixer will increase more than the extra 6 to 12 cents?
And you're asking us to believe a group that would be worried about any sort of price increase on anything they have to buy. How is that any better than what the Aluminum Association says?
I'm assuming you understand they dynamic behind tariffs, and why an extra 6-12 cents is a pretty significant increase.
I do understand. It's intended to get domestic companies buying more materials made right here in America, and not sending billions of dollars overseas to other countries.
Nobody is going to go broke if the price of a sixer increases by 10 cents. We all deal with bigger price increases than that on a regular basis on just about everything.
That said, I disagree with tariffs. They're a classic mercantilist idea and I do t like them. Maybe we should stop paying people tons of money and benefits for jobs that just aren't worth that much. There's no good reason it costs more to buy something made here than it does to buy something made on the other side of the world that is then shipped here.
You're talking about doing business in a vacuum, which obviously isn't realistic. Surely you don't expect there to be an implementation of tariffs, and other countries simply go "ok." There a little more involvement in getting beer than just aluminum and hops.
Well, we were talking the price of imported aluminum, and how an increase IN THAT would affect the price of domestic beer. We weren't talking about other things. But hey... move those goal posts however you see fit.