Teetotal Trump hits brewers with surprise beer can tax
Brewers have been hit by a surprise 'beer can tax' after it emerged that lager, stout and pale ale would incur a higher US tariff than other food and drink.
Under sweeping global tariffs announced on Wednesday by Donald Trump, most food and drink imported into the US from Europe incurs a tariff of 20pc. A lower rate of 10pc applies to the UK.
However, the small print of the new US tariff system shows that cans of beer will in fact be subject to the higher rate of 25pc that Mr Trump has applied to aluminium.
Brewers have warned that the decision to extend the 25pc tariff to canned beers could cost thousands of jobs and hammer beer businesses across the UK and Europe.
Emma McClarkin, the chief executive of the British Beer & Pub Association, said: 'A 25pc tariff on beer imported into the US is a direct hit to the brewers of the UK, who contribute so much to this country's economy and heritage.
'We urge the Government to defend the great British brewing industry and strike a deal which removes these harmful tariffs.
'With the enormous cost of doing business, many British brewers won't be able to sustain a hit such as this from one of our biggest trading partners.'
European brewers are also lobbying Brussels to defend their interests amid warnings 100,000 jobs could be lost on the Continent – 5pc of all brewing jobs in Europe.
Julia Leferman, the secretary-general of Brewers of Europe, told the Financial Times: 'We are calling on the [European] Commission to use all diplomatic channels and whether through negotiation or retaliation, find a way to de-escalate this tariff in which we have become a collateral victim.'
Dutch brewer Heineken, Denmark's Carlsberg and Dublin-based Guinness are all significant exporters to the US and will be affected by the new tariffs.
Brewers are not yet clear on some crucial details, such as whether the 25pc tariff will be charged on the value of the entire product or just on the value of the can. A BBPA spokesman said it looked from the US government's wording as if the former would be the case.
Mr Trump is a self-proclaimed teetotaller. He has said in interviews that this is because his older brother, Freddie, was an alcoholic – a factor that contributed to his premature death.
The president has said: 'It was a very tough period of time. If you don't start you're never going have a problem. If you do start you might have a problem. And it's a tough problem to stop.'
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