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Trump Tariffs: Aluminum Surge Raises Cost on Bottlers, Brewers | Bloomberg

Donald Trump’s trade wars are increasing scrutiny of an obscure process that has boosted how much U.S. beer makers and bottlers pay for aluminum cans.

The chairman of Molson Coors Brewing Co. and a bottler for PepsiCo Inc. are urging the U.S. government to investigate the process used to set benchmark aluminum premiums, which have doubled from 2017 levels in the wake of U.S. import tariffs. And the companies may have an ally in Commerce Secretary Wilbur Ross, who says the jump probably isn’t justified.

The premium, which is meant to reflect transportation and handling costs along with the amount of supply available, is determined by London-based S&P Global Platts using its own market surveys. Beverage makers say that the process leaves itself open to manipulation, and want regulatory oversight of how it’s conducted.

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Trump Tariffs: Aluminum Surge Raises Cost on Bottlers, Brewers – Bloomberg.

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