President Donald Trump's tariffs on steel and aluminum imports took effect today. FOX 47's Marcus Dash talked with a local beer maker to find out how it'll hurt businesses that rely on these goods.
Old Nation Brewery in Williamston buys large amounts of aluminum to can their beers. Owner Travis Fritts tells me he'll take a hit right away, but that doesn't necessarily mean customers will.
"Immediately it'll increase our costs by about three percent, maybe up to five percent depending on how it plays out," said Travis Fritts.
Travis Fritts, owner of Old Nation Brewery says the problem starts with where they get their aluminum and because some of it comes from outside of the United States, then the problem comes right to Fritts' door
For Old Nation Brewery customers-Fritts says they won't be seeing any cost increase for a little while
"Our can providers have some stock, they aren't going to raise a price until the stock they're using reflects this increase in price," said Fritts.
That doesn't mean it won't happen down the road.
"It's my responsibility to absorb that cost increase until I can't anymore and have to pass it along to the consumer," said Fritts.
Fritts says he wouldn't be worried if the cost increase stays around three to five percent, it's the unknown that bothers him.
"We'll be able to absorb this increase in costs but looking forward is uncertain and no business likes uncertainty," said Fritts.
Overall Fritts believes the tariff is a good thing. He just hopes it works out for everyone so they can coexist with one another.
"Manufacturers become more competitive and don't affect guys like me more than 3-5 percent that we are affected by now, and we can all ride off into the sunset together," said Fritts.
We also reached out to the Lansing Brewing Company and they tell us they haven't heard from their manufacturer, so they don't know how the tariffs will hurt them.
The tariffs are taxing steel imports at 25 percent and aluminum at ten percent. However, Mexico, Canada, and several other countries are exempt.
