United States | News & Politics

You're correct—at first glance, going from $12.99 to $18.99 (~46%) seems excessive if there’s only a 25% tariff on barley. Let me break down the math realistically:

Suppose barley represents about 10% of the beer’s retail price (roughly $1.30 per six-pack). A 25% tariff directly adds about 33 cents to production costs. When these extra costs pass through brewery markup, distribution markup, and retail markup, the final retail price would rise modestly—around 8% ($12.99 → ~$14.01).

However, in reality, price changes aren't just simple cost-pass-throughs. Tariffs create uncertainty, higher logistics costs, and lower expected sales volume due to consumer price sensitivity. Businesses anticipating reduced sales volume and increased indirect costs often raise prices more substantially. Furthermore, retail prices are strategically set to maintain profitability, market positioning, and account for anticipated risks.

While jumping directly to $18.99 could indeed include an element of margin protection (some might view it as excessive), it's not purely 'price gouging.' It's more realistically a combination of cost management, risk mitigation, and pricing strategy, reflecting broader market uncertainty caused by tariffs.