RICHMOND, Va. (WWBT) – Local business owners are now carrying the weight of tariff rate hikes as suppliers can no longer absorb the increased costs.
Bingo Beer owner Jay Bayer said Friday that suppliers worked to shield him from the impacts of tariff increases, but the inevitable is finally here.
“So everybody has done their best, but we have been informed by our aluminum can producer that they will have to pass on up to a 10% of the cost,” Bayer said.
Bayer is not alone. Dean Williams is the managing partner of Open Plan Systems, a local company that offers design plans for business offices. He said he has seen a significant change in out-of-pocket costs, mostly due to tariffs.
“In 2018, with much greater sales, we were paying about $350K to $400K a year in early tariffs; today it’s over $2 million that we pay,” Williams said.
According to a CRS report, tariffs on U.S. imports from all global partners have increased since the beginning of President Trump’s second term.
The reports show tariffs on imported goods range from 10 to 50%, depending on the country from which they come.
Bayer is most concerned about the aluminum tax imposed on the UK. He said he works with suppliers worldwide.
The tariff on aluminum is 25% for the UK and 50% for all other countries.
“The most expensive thing in the can of beer is the can itself; to be able to negotiate pricing even when you’re at a good size scale as a craft brewer is still pretty difficult,” Bayer said.
While Williams already passed on costs to his customers, Bayer said he does not intend to pass them along right now, but changes could come depending on how it impacts his bottom line.
“And will have to decide what we will do whether that’s different packaging type moving from 16oz can in a six pack to some other packaging type,” Bayer said.
Bayer said the business values having the beer tasting room accessible to people from all walks of life.
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