Tariff Talk

Beer has taken the biggest hit in recent tariff news. Initially exempt from aluminum tariffs, HTS 2203.00.00 now falls under the category of aluminum derivatives, which will absorb a 25% tariff on all beer made with malt that isn’t packaged in glass containers. The tariff will apply to the can itself, not the beer. Additionally, aluminum cans under 20 liters, classified under 7612.90.10, have been added to the Section 232 tariffs. These new tariffs are set to take effect on April 4.

In a recent vote, the Senate (51-48) rebuked tariffs imposed on Canada. Of the four Republicans who voted in favor, Senator Rand Paul of Kentucky was the most vocal, citing concerns from automakers, bourbon producers, and Kentucky farmers about lost sales in Canada. While the bill is not expected to move forward in the House, reports from manufacturing groups and foreign leaders calling for negotiations suggest that OCEANAIR should closely monitor any updates to the reciprocal tariff schedule.

Missing from last night’s updates was any information on Venezuela’s oil tariffs, which are expected to impact both direct and indirect buyers of Venezuelan oil. There were also no updates on the status of the External Revenue Service (ERS) or any directives aimed at charging foreign parties directly.