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Fourth Of July Barbeque Prices Have Risen Since Trump Imposed Tariffs, Congressional Analysis Says

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US barbeque costs are up this Fourth of July, with overall grocery trips for cookouts increasing by 12.7% since April. Beer prices are notably higher; Miller Lite and Coors Light six-packs increased over 13%. Tariffs imposed in April on aluminium are a contributing factor.

Why Your Barbeque Might Cost More This Year – And What It Means For You

Planning a Fourth of July barbeque? You might have noticed that the sausages and beer are hitting your wallet a bit harder this year. A recent analysis suggests that tariffs – basically, taxes on imported goods – put in place by the previous Trump administration are partly to blame. Let’s break down what this means for your bank balance, shall we?

That 12.7% increase in the cost of your typical barbeque shop? Think of it this way: If your spread cost £100 last year, the groceries for the exact same barbeque would now cost you an extra £12.70. Ouch. That's an annualised rate, looking at the price changes since April, so hopefully, you've budgeted for the cost of living crisis already.

Beer and Barbeque Gear: Where You’ll Really Feel the Pinch

The report looked at popular products at Walmart and Amazon to track price changes between April 1st and June 26th. And if you're planning on serving beer, prepare to feel the squeeze. A six-pack of Miller Lite or Coors Light has jumped by over 13% since April. That’s like paying an extra quid and thirty pence for every tenner you spend on beer. Not ideal, is it?

Imported beers haven’t escaped the price hikes either. Peroni Nastro Azzurro bottles are up 10.5%, and Modelo Especial bottles have increased by 9.5%. Remember those tariffs we mentioned? Back in April, a 25% tariff was slapped on beer imports and empty aluminium cans. Then, in early June, the tariff on imported aluminium shot up to 50%! This increase in aluminium tariffs is significant because aluminium is used to make the cans that hold our beloved beer. If it costs more for companies to get the aluminium, they often have to raise the price of the beer to cover their costs. Makes sense, doesn't it?

It's not just the drinks that are affected. Barbeque gear has also seen some pretty hefty price increases. A Coleman foldable camping chair on Amazon has risen by a whopping 47.7% since April 1st. That's nearly half as much again! A 25-piece griddle accessories kit is up by 17.7%. So much for a budget barbeque!

Other essentials have also seen smaller, but still noticeable, increases. Banana Boat sunscreen is up 8.1%, Reynolds Wrap aluminium foil is up 6.9%, a Weber propane grill is up 5%, and a multi-pack of disposable plates and utensils is up 3.3%. Every little helps, eh? Except, in this case, it's every little hurts!

What This Means for Beer Companies – And What They're Doing About It

Some beer companies are already feeling the pressure. Constellation Brands, which owns Modelo, has said that these higher aluminium costs have squeezed their profit margins. Profit margins are basically the difference between how much it costs a company to make something and how much they sell it for. If costs go up but they don’t raise prices, their profit margin shrinks. Nobody wants that!

Another report from Rabobank, a food and agriculture bank, found that the cost of a barbeque for ten people has risen by 4.2% this year and will hit £100 for the first time ever. Crikey! They pointed to higher beef prices as one of the reasons for the increase. Looks like that gourmet burger will cost you a bit more!

What Does This Mean For You and Your Investments?

Right, so what does all this mean for you, the average Joe or Joanne? Let's break it down:

  • If you're planning a barbeque: Be prepared to spend a bit more. Shop around, look for deals, or consider cheaper alternatives to keep costs down. Maybe swap that fillet steak for some sausages?
  • If you invest in beer companies: Keep an eye on how these tariffs are affecting their profits. Companies that can find ways to manage these costs – perhaps by using different materials or streamlining production – might be better investments in the long run. It pays to be savvy!
  • If you work for a company affected by these tariffs: This is unlikely to be immediately impactful, but keep an eye on sales volumes. Increased costs could affect staffing levels down the line, although hopefully, it won't come to that.

Ultimately, the rise in barbeque costs highlights how those trade policies you hear about on the news can actually trickle down and affect the price of your everyday essentials. It's a reminder that economics isn't just some abstract thing – it's about the cost of your Saturday afternoon barbeque!

Key Points – The Need-To-Knows

  • The cost of a typical Fourth of July cookout has increased by 12.7% since April, largely due to tariffs.
  • Prices for popular beers like Miller Lite and Coors Light are up by more than 13% since April, impacting your pocket.
  • Essential barbeque gear, such as Coleman camping chairs and griddle accessory kits, have seen significant price increases on Amazon.
  • Beer companies like Constellation Brands are experiencing squeezed profit margins due to higher aluminium costs from tariffs.
  • A separate report from Rabobank found that the cost of a 10-person barbeque will hit £100 for the first time, indicating broader inflationary pressures.
  • If you're an investor, keep an eye on those companies reliant on aluminium. How are they adjusting to these increased cost pressures? And can they offset those increases? That's what you need to know!