GRAND JUNCTION, Colo. – Craft breweries in the U.S. could be in for a bumpy ride as President Donald Trump’s latest tariffs on steel and aluminum imports threaten to drive up production costs. The 25% tariff on imported steel and aluminum, as reported by CNN, has sparked concerns within the brewing industry, particularly among small and mid-sized craft beer producers who rely heavily on aluminum cans.

Rising Costs for Craft Brewers

For many craft breweries, aluminum cans have become the go-to packaging choice. According to the Brewers Association, roughly 75% of craft beer is sold in cans rather than bottles. A significant portion of those cans are sourced from Canada, making the industry particularly vulnerable to tariff-related cost hikes.

Brewers are already grappling with inflationary pressures on ingredients and labor. Adding a sudden increase in aluminum costs could mean higher prices for consumers or thinner margins for businesses operating on tight budgets.

“We’re already dealing with increased costs across the board – hops, barley, labor. Now, adding aluminum to the mix is going to hit us hard,” said Brian Lawson, owner of Rocky Mountain Brewing.

Small Breweries Hit Hardest

Larger beer companies often have the ability to absorb cost increases through bulk purchasing and long-term supplier contracts. Small, independent breweries, however, typically buy materials in smaller quantities, making them more sensitive to price fluctuations.

• A 25% increase in aluminum costs could translate to an estimated 3-5 cents per can, which adds up quickly for small-scale producers.
• Packaging accounts for nearly 30% of a brewery’s total production costs, making any increase in materials a significant financial burden.
• Some brewers may pass the costs onto consumers, while others may struggle to stay competitive against larger beer brands.

Industry Reactions and Potential Workarounds

Not all industry voices are in agreement on the impact of the tariffs. Supporters argue that domestic manufacturers will benefit, potentially reducing reliance on foreign materials in the long run. However, opponents worry about short-term instability and potential job losses in brewing, distribution, and retail sectors.

Some breweries are already exploring alternative solutions:

• Stockpiling aluminum cans ahead of price hikes.
• Switching to glass bottles, though this comes with higher shipping costs and less consumer demand.
• Negotiating bulk purchase deals to lock in lower prices before the tariffs fully take effect.

What’s Next for the Craft Beer Industry?

The full effect of the tariffs is yet to be seen, but the industry is bracing for challenges ahead. Some brewers may be forced to scale back production, delay expansions, or rethink packaging strategies. Meanwhile, consumer prices could see incremental hikes as companies attempt to offset rising costs.

“We’re in a wait-and-see mode right now,” said Sarah Thompson, co-owner of High Plains Brewery. “If the tariffs stick around for the long haul, we’ll have to adjust our pricing model, and that’s never an easy conversation to have with customers.”

For craft beer lovers, this could mean pricier six-packs and fewer new experimental brews hitting the market. Whether the tariffs achieve their intended goal of boosting domestic metal production remains to be seen, but for small brewers, the immediate concern is simple—staying afloat.