The fallout continues following last week's decision by the Trump administration to eliminate metals tariff exemptions granted to Canada, Mexico and the European Union. The EU, Canada and Mexico were quick to announce retaliatory tariffs. But as CGTN's Dan Williams reports, there are also many American manufacturers against the move.

This is a key time of the year for U.S. beer makers, with sales climbing ten percent over the peak summer months. Despite that, many brewers and beverage makers are deeply concerned and that includes MillerCoors, the second largest U.S. brewing company. Last month, the Trump administration announced it would impose tariffs on steel and aluminum imports from three key U.S. trading partners-Canada, Mexico and the European Union. The 10 percent tariff on aluminum led MillerCoors to warn the move would lead to higher prices and job losses.

TIM WEINER SENIOR GLOBAL RISK MANAGER, MILLERCOORS "When you put a tariff on a raw material, you disadvantage tens of thousands of manufacturers who would use aluminum as an input. Because anyone who is bringing raw material into this country would not have that same disadvantage. Also, anyone who exports to those countries would also be disadvantaged. And that is the real kicker there."

Since January 2015, aluminum production in the U.S. has fallen by more than 50%. It means, manufacturers will have little choice, but to pay the tariff, at least in the short term, as the demand far outweighs domestic supply.

DAN WILLIAMS MILWAUKEE "To underline the importance of aluminum for the company, this production line produces two point one million cans of beer a day and this is just one of four production lines in Milwaukee alone."

Dali Yang is a professor of political science at the University of Chicago. He fears the U.S. tariffs on metal imports will hurt a lot of businesses.

DALI YANG, PROFESSOR UNIVERSITY OF CHICAGO "Businesses really hate uncertainty. The margins for beer manufacturers and others are fairly compressed. So they need to be very careful with this kind of input price, especially at a time also when the labor market is highly constrained as well."

U.S. aluminum prices jumped 26 percent in April and remains significantly higher than at the start of the year. It has led some manufacturers to call for a reform of the so-called "Midwest Premium" - a pricing system that is used for aluminum in the U.S.. Weiner says the pricing system is outdated and punishes manufacturers. 

TIM WEINER SENIOR GLOBAL RISK MANAGER, MILLERCOORS "In the beer industry, I think every penny of artificial inflation with the 'Midwest premium,' which is where the tariffs are being felt, it is 40 million dollars just to the beer industry. If you look at the beverage industry in the rest of the United States. You look at autos, construction, you are talking billions of dollars. Is it worth it to save a few hundred jobs? Not saying the jobs are not important, they are important but you have to look at the whole economy."

In the meantime, brewers and other drink manufacturers hope they won't be the ones stuck with the hangover once the tariff dust settles.