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Tariff impact: Nearly $20 for a 6-pack of beer?

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President Donald Trump’s tariff policy is already having an impact on small business owners like Bill Butcher, the founder of Port City Brewing Company in Alexandria, Virginia.

His craft brewery depends on pilsner malt from Canada, which he’s been using in the company’s beers since it was founded in 2011.

“It’s a very specific strain of high-quality barley that grows in the cold climate of Canada,” he said Tuesday during an appearance with Sens. Tim Kaine and Mark Warner, both of Virginia. “And there’s not a suitable U.S. substitute that we can get of the same quality to make our beer.”

Butcher said a 25% tariff on the key ingredient in his beer would clearly hurt his business, which is already dealing with an uncertain business climate.

“We’re going to have to raise our prices,” he said, noting the increase could be substantial, as he held a six-pack of his beer. “This $12.99 six-pack of beer is going to end up at $18.99.”

As good as he likes to think his beer is, he questioned how many people would be willing to pay that price.

Butcher noted it is virtually impossible to execute his business plan when there is so much uncertainty about tariffs.

He said this week he had to lay off two employees, as he addresses various economic issues. Trump initially imposed 25% tariffs on all Canadian goods, then carved out some items.

But Canadian concern about threats from Trump have already had an impact on Dave Cuttino, the founder of Richmond-based Reservoir Distillery.

Soon after returning from a trip to western Canada earlier this year, where he’s trying to expand his business, he learned from his distributor that stores had taken his whiskey off their shelves in retaliation for the U.S. tariffs.

“But also more importantly, the Canadian consumer — furious, frustrated, not understanding why — may not be coming back,” Cuttino said.

Legislation seeks to block tariffs against Canada

The business owners said they support legislation cosponsored by Kaine and Warner, which would prevent Trump from utilizing an emergency declaration citing fentanyl coming across the border with Canada as justification for tariffs against the longtime U.S. ally.

Like many other Democrats, Kaine and Warner call the tariffs a tax, saying it unfairly penalizes American businesses and consumers.

“The emergency’s being invented to do the tariffs — to do the taxes — on every day Americans,” Kaine said. “Why — so they can use the tariff revenue to give a tax cut to billionaires.”

Trump has repeatedly defended the tariffs, saying they are needed to level the playing field of international trade.

The president on Tuesday urged the Senate to keep the U.S. tariffs against Canada in place.
But Kaine said the tariffs need go away, stressing that they create ill will between the U.S. and its neighbor to the north.

“Canada is a friend, not an adversary,” he said. “Canada is a sovereign nation, not a 51st state.”

Democrats need at least four Republicans to join them in voting for the legislation, if it’s to pass the Senate.

“Don’t let the Democrats have a victory,” Trump said in a social media post.

But for small business owners, such as Butcher and Cuttino, the trade fight isn’t about political wins and losses.

They both said they are just trying to make a living and grow their businesses.

Butcher also noted that the widespread cuts to the federal workforce are having an impact on businesses throughout the D.C. area.

“Their household economies are in danger and they’re pulling back on spending as well,” he said. “So as a result, an everyday luxury like a craft beer or a whiskey, they’ll pull back on those everyday luxuries.”

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Mitchell Miller

Mitchell Miller has worked at WTOP since 1996, as a producer, editor, reporter and Senior News Director. After working "behind the scenes," coordinating coverage and reporter coverage for years, Mitchell moved back to his first love -- reporting. He is now WTOP's Capitol Hill reporter.

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