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Supply Chain News: US Aluminum Suppliers Milking Tariffs to Raise Prices, Molson Coors Executive Says | SupplyChain Digest

Tariffs on some foreign goods and materials, predominantly of course Chinese-made goods but also broad-based tariffs on some metal imports, were designed in theory to drive production back to US factories.

It isn’t always working out that way, that’s for sure.

Case in point: A recent guest column in the Wall Street Journal by Pete Coors, vice chairman of beer maker Molson Coors, in which he rather amazingly calls out several players in the aluminum supply chain for using the tariff umbrella basically to price gouge their customers.

Coors begins by noting President Trump has said there is an easy way to avoid the impact of tariffs: buy from US suppliers.

“Unfortunately, this isn’t quite true for anyone buying aluminum,” Coors writes. “Thanks to manipulative business practices that appear to permeate the industry, it doesn’t matter if you buy from a tariffed company or an American one – you’ll still pay the same high price.”

Virtually all aluminum sold in the US is priced as if it were tariffed, even though much of it is not, especially after the Trump administration recently lifted tariffs on imports from Canada and Mexico. With that move, 77% of the imported aluminum that US companies buy is free from tariffs – yet the metal is still is priced higher as if it were tariffed, Coors says.

Read complete article here:

Supply Chain News: US Aluminum Suppliers Milking Tariffs to Raise Prices, Molson Coors Executive Says.

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