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

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.

---

Sources:

• Brewers Association: 2024 Industry Review

• U.S. Department of Commerce – Section 232 Investigations

• Aluminum Association Reports

• Trading Economics: Midwest Premium Aluminum Price Data

• Washington Post (Instagram Collection)
• WallStreetLogyc (Instagram Reel)

 

---

See Our Related Articles

• Tariffs and Taps: How Trump’s Trade Policies Would Impact Craft Breweries
• Trouble Brewing: How Trump’s Liberation Day Tariffs Are Impacting Craft Beer
• When Canada Attacked Yuengling!

Thank You For Reading

If you like this article, please check out our other many articles, including news, beer reviews, travelogues, maps, and much much more. We greatly appreciate everyone visiting the site!

Cheers.

Thanks again for reading everyone. Take some time to check out the site, we greatly appreciate it. We have affiliates and sponsors with Pretzels.com and Beer Drop.com, which can save you money on their products if you are interested. Check out our articles on them. Make sure to check out our beer reviews, brewery reviews, Amy’s weekly column, book reviews, hike reviews, and so much more.

As always, thank you everyone for reading! Leave your likes, comments, suggestions, questions, etc, in the comments section. Or use the Feedback – Contact Us – page, and we’ll get right back to you! You can also reach out to us at our direct e-mail address: thebeerthrillers@gmail.com

Thank you for visiting our blog. Please make sure to follow, bookmark, subscribe, and make sure to comment and leave feedback and like the blog posts you read. It will help us to better tailor the blog to you, the readers, likes and make this a better blog for everyone.

We are working on a massive project here at The Beer Thrillers. We are creating a map of all of the breweries across the United States. State by state we are adding maps of all of the different states with every brewery in each state. (We will eventually get to the US Territories, as well as the Canadian Provinces, and possibly more countries; as well as doing some fun maps like a map of all the breweries we’ve been to, and other fun maps.) You can find the brewery maps here:

• MAPS OF BREWERIES

We are also working on a project of creating printable and downloadable PDFs and resources to be able to check and keep track of all of the breweries you’ve been to. So stay tuned for that project once we are finished with the Brewery Maps of the US States.

You can check out our different directories here: Beer Reviews, Hike Reviews, Book Reviews, Brewery News, Brewery Openings, Brewer Interviews, and Travelogues.

Please be sure to follow us on our social media accounts – Facebook, Facebook Group, Twitter, Instagram, YouTube, and Influence. As well as our brand new Tumblr page. Please be sure to also follow, like, subscribe to the blog here itself to keep updated. We are also now on BlueSky as well, so make sure to check us out there also. We love to hear from you guys, so be sure to leave a comment and let us know what you think!

You can now find us on our Discord Server here: The Beer Thrillers (Discord Server).

We also now have a SLACK channel – which acts as a hybrid chat room, message board, Reddit style; workspace and posting area for us. You can hang out with us there and chat about all kinds of things – not just beer, but “off topic” things like movies, TV, books, podcasts, hiking, sports, and more! Join us at: The Beer Thrillers on SLACK.

We’ve also joined LinkTree to keep track of all of our social media pages, as well as hot new articles we’ve written. The Beer Thrillers on LinkTree can be found here: The Beer Thrillers LinkTree.

We have partnered with an affiliateship with Beer Drop.com. You can check out that partnership and receive great discounts, coupons, and more here: Beer Drop. Going here and logging in and ordering will help you receive your discounts and coupons as well as help support our page. Thank you for helping to support The Beer Thrillers and to help us maintain the site and blog and to keep it running.

The Beer Thrillers are a blog that prides itself on writing beer reviews, brewery reviews, travelogues, news (especially local to the Central PA brewery scene), as well as covering other topics of our interests – such as hiking, literature and books, board games, and video games which we sometimes stream with our friends over at Knights of Nostalgia. We are currently listed as #5 on FeedSpot’s “Top 100 Beer Blogs” and #9 on FeedSpot’s “Top 40 Pennsylvania Blogs”. (As of May 2025.) Thank you for reading our site today, please subscribe, follow, and bookmark. Please reach out to us if you are interested in working together. If you would like to donate to the blog you can here: Donate to The Beer Thrillers. Thank you!

You can also check out our partnership and affiliation with Pretzels.com, where ordering pretzels and using our affiliate code – AFFILIATE CODE IS THEBEERTHRILLERS20 – will help you get wonderful pretzels and help us maintain and keep this blog running. Thank you!

If you would like to reach out to us for product reviews, beer reviews, press release writing, and other media – please contact us at thebeerthrillers@gmail.com. Thank you.

(Thank you for reading. The opinions, thoughts, and expressions of each article posted on The Beer Thrillers represents the author of the content and only themselves. It does not express the opinions, beliefs, or ideas held by The Beer Thrillers or any company in which the author themselves work for. Each piece of written content is written by the creator(s) listed in the authorial section on each article unless otherwise noted. Their opinions, comments, and words on screen do not represent any company in which they work for and / or are affiliated with or any non – profits that they contribute to. Thank you.)