A Vancouver beer company is facing the prospect of increasing prices on their cans due to tariffs on steel and aluminum. The company, Superflux Beer Company, is expecting the price of their aluminum cans to increase by about 10% due to the rise in the price of aluminum. Additionally, they may face a 25% or 50% tariff on top of that. These tariffs are a result of actions taken by U.S. President Donald Trump and the counter-tariffs imposed by the Canadian federal government. This situation is creating uncertainty and driving up costs for businesses that rely on aluminum products.
The trade war escalated on Tuesday when Trump announced multiple changes to the tariff policy within a span of eight hours. Initially, Trump stated that tariffs on aluminum and steel would double from 25% to 50% in response to Ontario Premier Doug Ford’s surcharge on Ontario electricity exports. However, later in the day, Ford announced the suspension of the surcharge after securing a meeting in Washington with the commerce secretary. As a result, Trump decided to keep tariffs at 25% as of 9:01 p.m. PT on Tuesday. This unpredictability in trade policies is causing confusion and concern among businesses.
The constant shifts in tariff policy are causing a negative impact on businesses, from small local operators to multinational companies. Economists warn that the uncertainty created by the back and forth is leading to a slowdown in investment and decision-making. Jock Finlayson, chief economist with the Independent Contractors and Businesses Association, emphasized that the trade war is dampening investment and causing companies to hesitate in making important decisions. The ongoing trade tensions are affecting various sectors of the economy, including steel and aluminum exports from Canada to the U.S.
The beer company’s predicament is just one example of how the trade war is affecting businesses in Canada. With estimates showing that Canada exports $35 billion worth of steel and aluminum to the U.S. each year, the impact of tariffs and counter-tariffs is significant. The uncertainty created by the trade war is making it difficult for companies to plan for the future and make strategic decisions. The fluctuating trade policies are leading to higher costs, reduced investment, and an overall slowdown in economic activity.
The trade war between the U.S. and Canada is causing ripple effects across various industries and businesses. The beer company’s decision to increase prices on their cans is a direct result of the tariffs imposed on steel and aluminum. As the trade war continues to unfold with changing policies and uncertainties, businesses are left grappling with the challenges of increased costs and decreased investment. The economic impact of the trade war is significant, with economists warning of a slowdown in decision-making and investment as a result of the ongoing tensions between the two countries. The situation is fluid and evolving, creating challenges for businesses of all sizes.
