How Doubling Steel and Aluminum Tariffs Could Cripple America’s Craft Beer Industry

How Doubling Steel and Aluminum Tariffs Could Cripple America’s Craft Beer Industry

How Doubling Steel and Aluminum Tariffs Could Cripple America’s Craft Beer Industry

Trump, Tariffs, and Beer

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%, effective Wednesday, June 4. While the legal basis for this increase rests on Section 232 of the Trade Expansion Act, 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.

Aluminum and the Lifeblood of Cans

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, 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.

The challenge? Much of the raw aluminum used in U.S. can production is imported, 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.

(See our article: Tariffs and Taps: How Trump’s Trade Policies Would Impact Craft Breweries)

What Is the Midwest Premium?

The “Midwest Premium” 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:

  • The Midwest Premium is hovering around 32 cents per pound, up from 26 cents in early May.

  • That increase translates into several cents more per can, which may sound small — but for breweries producing tens of thousands of cases, the extra costs can stack up fast.

Steel Tariffs and the Price of Brewing

While aluminum affects packaging, steel tariffs hit the brewhouse. Most stainless steel kegs used by American breweries come from Europe — particularly Germany, Italy, and the Czech Republic — and brewing equipment is frequently sourced from China and the EU.

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:

  • New fermenter or brite tank costs could jump by 15–30%.

  • Imported kegs could rise from $120 to over $160 per unit.

  • Shipping container delays and tariffs could extend wait times on equipment by months.

(See our article: Trouble Brewing: How Trump’s Liberation Day Tariffs Are Impacting Craft Beer)

A Delicate Balance for Small and Independent Breweries

Unlike global macrobreweries, most of the 9,500+ small and independent breweries 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 — like spiking materials tariffs — could spell disaster for the most vulnerable producers.

“We 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,” says one Pennsylvania-based brewery owner. “We’re not sure if we’ll need to raise prices, shrink can sizes, or move to bottles. None of those are ideal.”

Domestic Production: A Long-Term Solution?

The Brewers Association has expressed hope that tariff pressure might eventually lead to increased domestic production of steel kegs and brewing equipment. But that shift won’t happen overnight. It requires:

  • New factories outfitted for food-grade steel.

  • Specialized labor trained in beverage equipment.

  • Incentives or subsidies to compete with cheaper foreign alternatives.

Until that infrastructure is in place — likely years from now — brewers will continue to rely heavily on imports.

(See our article: When Canada Attacked Yuengling!)

Could There Be a Reprieve?

There’s still uncertainty. President Trump has delayed or reversed some recent tariffs after backlash. But there’s no guarantee this time. That means:

  • Breweries should immediately consult with suppliers to understand cost impacts.

  • Strategic changes, like buying in bulk or diversifying suppliers, may soften the blow.

  • Advocacy groups like the Brewers Association are actively lobbying for exemptions or policy reversals.

The Bigger Picture: Craft Beer in an Uncertain Economy

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.

Craft beer sales dipped slightly in 2024, with the Brewers Association reporting a 2% decline in volume, though dollar sales remained relatively flat due to price adjustments. But if input costs rise sharply, consumers could soon see higher six-pack prices, or worse, a thinning out of local options as small breweries fold under economic strain.


Final Thoughts: Stay Informed and Support Local

Craft beer isn’t just an industry — it’s a culture, a movement, and a community. Whether you’re a brewer, a beer drinker, or a retailer, now is the time to stay informed and support local.

We at The Beer Thrillers will continue monitoring these tariff changes and their impact on our beloved beer scene. Expect updates, interviews, and breakdowns in the weeks to come.

🍻 Have thoughts on the tariff hikes? Are you a brewer affected by these changes? Drop us a comment below or reach out — we’d love to share your story.


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