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<\/p>\nTrump, Tariffs, and Beer<\/p>\n<\/div>\n
In a move sending shockwaves through the craft brewing world, President Donald Trump has announced plans to double tariffs on aluminum and steel from 25% to 50%<\/strong>, effective Wednesday, June 4<\/strong>. While the legal basis for this increase rests on Section 232 of the Trade Expansion Act<\/strong>, which allows tariff hikes for reasons of national security, the real-world impact is poised to hit one of the most iconic and homegrown American industries: craft beer<\/strong>.<\/p>\n Aluminum cans are no longer just the realm of mass-market lagers. Today, approximately 76% of all U.S. packaged beer is sold in aluminum cans<\/strong>, according to the Brewers Association. That number is even higher among newer and mobile-friendly breweries who prefer cans for their portability, recyclability, and faster chilling times.<\/p>\n The challenge? Much of the raw aluminum used in U.S. can production is imported<\/strong>, particularly from Canada, even though the final rolling and manufacturing of cans often happens domestically. With the proposed increase in aluminum tariffs, brewers could soon face a steep hike in canning costs.<\/p>\n (See our article: Tariffs and Taps: How Trump\u2019s Trade Policies Would Impact Craft Breweries<\/a>)<\/p>\n The \u201cMidwest Premium\u201d is the benchmark pricing metric for aluminum in the U.S. and has already seen notable spikes following the tariff announcement. As of June 2025:<\/p>\n The Midwest Premium is hovering around 32 cents per pound<\/strong>, up from 26 cents in early May<\/strong>.<\/p>\n<\/li>\n That increase translates into several cents more per can<\/strong>, which may sound small \u2014 but for breweries producing tens of thousands of cases<\/strong>, the extra costs can stack up fast.<\/p>\n<\/li>\n<\/ul>\n While aluminum affects packaging, steel tariffs hit the brewhouse<\/strong>. Most stainless steel kegs<\/strong> used by American breweries come from Europe<\/strong> \u2014 particularly Germany, Italy, and the Czech Republic \u2014 and brewing equipment<\/strong> is frequently sourced from China and the EU<\/strong>.<\/p>\n With tariffs on steel doubling, breweries looking to expand, replace aging tanks, or even just keep up with maintenance are looking at some painful math. Some estimated impacts:<\/p>\n New fermenter or brite tank costs<\/strong> could jump by 15\u201330%<\/strong>.<\/p>\n<\/li>\n Imported kegs<\/strong> could rise from $120 to over $160 per unit.<\/p>\n<\/li>\n Shipping container delays and tariffs<\/strong> could extend wait times on equipment by months.<\/p>\n<\/li>\n<\/ul>\n (See our article: Trouble Brewing: How Trump\u2019s Liberation Day Tariffs Are Impacting Craft Beer<\/a>)<\/p>\n Unlike global macrobreweries, most of the 9,500+ small and independent breweries<\/strong> in the United States operate on tight margins and rely on a complex supply chain. With slim profit windows and rising labor, ingredient, and utility costs, another shock to the system \u2014 like spiking materials tariffs \u2014 could spell disaster for the most vulnerable producers.<\/p>\n \u201cWe source American-made cans, but the aluminum still comes from Canada. This kind of increase puts a big dent in our already-tight packaging budget,\u201d says one Pennsylvania-based brewery owner. \u201cWe\u2019re not sure if we\u2019ll need to raise prices, shrink can sizes, or move to bottles. None of those are ideal.\u201d<\/p>\n<\/blockquote>\n The Brewers Association has expressed hope that tariff pressure might eventually lead to increased domestic production<\/strong> of steel kegs and brewing equipment. But that shift won\u2019t happen overnight<\/strong>. It requires:<\/p>\n New factories<\/strong> outfitted for food-grade steel.<\/p>\n<\/li>\n Specialized labor<\/strong> trained in beverage equipment.<\/p>\n<\/li>\n Incentives<\/strong> or subsidies to compete with cheaper foreign alternatives.<\/p>\n<\/li>\n<\/ul>\n Until that infrastructure is in place \u2014 likely years from now \u2014 brewers will continue to rely heavily on imports.<\/p>\n (See our article: When Canada Attacked Yuengling!<\/a>)<\/p>\n There\u2019s still uncertainty. President Trump has delayed or reversed some recent tariffs after backlash. But there\u2019s no guarantee<\/strong> this time. That means:<\/p>\n Breweries should immediately consult with suppliers<\/strong> to understand cost impacts.<\/p>\n<\/li>\n Strategic changes, like buying in bulk<\/strong> or diversifying suppliers<\/strong>, may soften the blow.<\/p>\n<\/li>\n Advocacy groups like the Brewers Association are actively lobbying<\/strong> for exemptions or policy reversals.<\/p>\n<\/li>\n<\/ul>\n With inflation still looming, interest rates high, and operating costs climbing across the board, this tariff announcement adds another pressure point to an already-stressed industry.<\/p>\n Craft beer sales dipped slightly in 2024<\/strong>, with the Brewers Association reporting a 2% decline in volume<\/strong>, though dollar sales remained relatively flat due to price adjustments. But if input costs rise sharply, consumers could soon see higher six-pack prices<\/strong>, or worse, a thinning out of local options as small breweries fold under economic strain.<\/p>\n Craft beer isn\u2019t just an industry \u2014 it\u2019s a culture, a movement, and a community. Whether you\u2019re a brewer, a beer drinker, or a retailer, now is the time to stay informed<\/strong> and support local<\/strong>.<\/p>\n We at The Beer Thrillers<\/strong> will continue monitoring these tariff changes and their impact on our beloved beer scene. Expect updates, interviews, and breakdowns in the weeks to come.<\/p>\n \ud83c\udf7b Have thoughts on the tariff hikes? Are you a brewer affected by these changes? Drop us a comment below or reach out \u2014 we\u2019d love to share your story.<\/strong><\/p>\n \u00a0<\/p>\n If you like this article, please check out our other many articles, including news, beer reviews, travelogues, maps, and much much more. 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If you would like to donate to the blog you can here: Donate to The Beer Thrillers<\/a>. Thank you!<\/p>\nAluminum and the Lifeblood of Cans<\/h2>\n
What Is the Midwest Premium?<\/h3>\n
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Steel Tariffs and the Price of Brewing<\/h2>\n
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A Delicate Balance for Small and Independent Breweries<\/h2>\n
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Domestic Production: A Long-Term Solution?<\/h2>\n
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Could There Be a Reprieve?<\/h2>\n
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The Bigger Picture: Craft Beer in an Uncertain Economy<\/h2>\n
\nFinal Thoughts: Stay Informed and Support Local<\/h2>\n
\nSources:<\/h3>\n
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