Experts Reveal How Trump’s Aluminum Tariffs Will Affect The Price Of Beer

 

By Kevin Wilkerson, PubClub.com Beer Blogger

“Beer,” Homer Simpson said, “is the cause of, and solution to, all of life’s problems.”

Well, that solution may be getting more expensive. If President Trump follows through on his 25% tariffs on aluminum and steel it will, according to experts, make the price of beer more expensive. And it may drive even more small brewers out of business. Trump’s on-and-off war on tariffs are confusing and frustrating to companies trying to deal with the situation because it’s impossible to plan and predict what might happen, and perhaps that’s his plan – to keep everyone off balance.

This is allof particular concern in the “Capitol of Craft,” San Diego. With some 150 breweries, craft beer is as much a part of the life there as tacos, the ocean and the Padres.

“The San Diego Brewers Guild recognizes the potential burden that new tariffs on stainless steel and aluminum could place on local craft breweries” San Diego Brewers Guild Executive Director Erik Fowle told PubClub.com in a statement. “Any increased costs for brewing equipment, kegs or cans would add financial strain to small producers already navigating a competitive market. We recommend that our members contact suppliers directly to talk about any potential impacts.

“The San Diego Brewers Guild is committed to supporting our members through our strong connections with leading suppliers and providing valuable educational resources, including seminars, webinars, and our annual conference. We look forward to continuing to bring the local brewing industry together to discuss creative and efficient ways to help our brewery members effectively run their businesses to bring fresh local beer to San Diego County.”

Katie Marisic, senior director of federal affairs for the national Brewer’s Association, an organization of brewers, for brewers and by brewers, stated that the “25% tariffs could have a broad impact on aluminum prices across the world, and a direct impact on U.S. manufacturing companies that make a variety of steel products, including kegs, steel tanks, brewhouses and building materials.”

The organization put out this notice to its members a few weeks ago when Canadian and Mexican tariffs were announced (since postponed):

Aluminum has been under a 232 tariff since 2018, but aluminum from Canada was exempt from that tariff. Most aluminum used to manufacture cans is imported from Canada. Even with the exemption, the cost of aluminum cans has risen. Opens in new window since the initial tariffs went into place. A 25% tariff on Canadian aluminum would likely further increase the cost of cans for small producers.

“Other materials used in the brewing process, like bottle caps imported from Mexico and equipment or parts imported from other countries, could also be impacted if the tariffs go into effect.

Proof of this comes from a that 3% tariff implemented in 2018.

Jason Klein, co-founder of Spiteful Brewing in Chicago, told CNN, that “last time, we were hit with a 3% increase in pricing for cans, and that was when we bought American. That was the opposite of what was supposed to happen. It seems like no matter who you buy from, the prices are probably going to go up.”

This could put many small brewers out of business. They are already feeling the pinch from a loss from changing drinking habits and increased costs to the point that in 2024, for the first time more breweries closed than opened. Three quarters of craft beer is in cans. Aluminum is a craft brewer’s biggest production expense. According to USA Today, the U.S., imports about half the aluminum it uses in various industries.

“The aluminum part will affect our business and every craft brewery,” Ryan Bandy, chief business officer at Indeed Brewing Co., a Minneapolis-based brewery, told the Milwaukee Sentinel. “Exactly how and when and to what degree is hard to say. I would have my head in the sand if I would say it wouldn’t affect our business in some way.”

Economists for Pantheon Macroeconomics estimated that the new tariffsk which are set to take effect on March 12, are expected to raise producer prices for steel and aluminum by 15% to 20% in the coming month. A lasting 10% rise in steel prices and 15% rise in aluminum would cost consumers an extra $8 billion a year, they wrote in a report.

Steel tanks are also used in the making of wine and spirits, so the price of a bottle, glass or cocktail is likely to increase, as well. Plus. all those canned cocktails that are suddenly flooding the market.

Kevin Wilkerson is an award-winning journalist who has been publishing PubClub.com for more than 20 years. He is an avid beer lover and beer drinker, prefering the smoothness of lagers and blondes, tho he frequently ventures out of those areas. This article was written by a human with no assistance from AI.