Ice tea in Arizona 99 Celsius can be the following victim of Trump’s definitions

Ice tea in Arizona uses about 100 million pounds of aluminum for its signing cans, about 20 % of which come from Canada. Founder and President Don Vultaggio He said the New York Times Unless Trump directs a deal to reduce the new aluminum tax with Canada, the company may have to raise prices.

“I hate even thinking about it,” said Vultaggio The Times. “It will be a shame after 30 years.”

Founder Take headlines To refuse to raise the price of a tap, even as inflation rises the prices of all other commodities. If Vultaggio adjusts the price of ice tea in Arizona to match the costs of increasing inputs, the tea will cost $ 1.99 today. However, the billionaire did not see a point.

“We are successful. We are without debt. We have everything. Why?” , Vultaggio said in interview with today In June. “Why do people who have difficulty paying their rent pay more for our drink?”

Vultaggio has tried other solutions to save money on aluminum, including Reducing its size The box is from 23 ounces to 22 ounces. Even this decision Weighs it.

Now, the founder worries the price of aluminum, which he said was “greatly shocked” due to the definitions, the final strike of the cans may be 99 ° C.

Manufacturing test

The dilemma of Arizona can be a test of what is happening when the local manufacturer is almost vertical, even having the railway tracks that its trains use to charge sugar daily – punishing the import of some of its materials.

The chief economist at PNC, Augustine Fosher luck I believed that the aluminum tariff was unnecessary and unnecessary.

Canada, which has access For abundant and inexpensive hydroelectric power, is one of the world leaders in aluminum production. He said that the costs of high inputs to make aluminum in the United States, their import will always be cheaper than their production locally.

He said: “It will be difficult to avoid definitions completely, and this will be possible to contribute to the rise in consumer enlargement in the short term, as these companies go through some high input prices.”

Fushir said companies like Arizona have few ways to break up the effect. Unlike slow -circulatory industries, which can store inventory before customs duties reach, beverage makers quickly transport the product. This means that the aluminum tariff will immediately reach the company’s final result.

Fushir pointed out that all price pain comes with very little profit. Companies like Arizona, who import some aluminum but produce the rest of the product locally, may decide only the product beams abroad to avoid duty.

“The idea is to help American manufacturers, but this harms American manufacturers who use these types of imported inputs,” said Fushier.

The economist said he does not see the need for the United States to have a strong local aluminum industry.

“It is a long -term logical to specialize in the areas where the United States operates well,” said Fushier. “But given the energy costs associated with the production of aluminum and access to boxes and all this type of things, it is not logical that the industry is in the United States.”