From Washington to the Taproom: How Trump’s Trade Policies Are Affecting American Craft Beer

There are few things more American than a small brewery making beer for its local community.

A brewer orders malt. Hops arrive from somewhere that may be several thousand miles away. Yeast goes into the tank. Stainless-steel equipment gets cleaned. The beer eventually finds its way into a keg or aluminum can, and from there it ends up at a neighborhood taproom, a bottle shop, a grocery store or sitting on somebody’s porch while they contemplate whether they really need to mow the lawn.

It is easy to imagine that most of this process has very little to do with Washington, D.C.

Then tariffs enter the picture.

During Donald Trump’s current presidency, U.S. trade policy has become an increasingly important variable for American breweries. Tariffs on aluminum and steel, new duties affecting imported brewing equipment and ingredients, and increasingly complicated trade relationships with major suppliers such as Canada have introduced another layer of uncertainty into an industry that was already dealing with declining production, brewery closures and increasingly cautious consumers.

That does not mean that Donald Trump is solely responsible for the problems facing American craft beer.

Far from it.

Craft beer was already experiencing a difficult period before the current tariff regime. U.S. craft production declined in 2025, retail dollar sales fell, and the number of operating breweries continued to shrink. The Brewers Association estimates that craft volume declined another 4% during the first half of 2026.

But trade policy can make an already difficult business environment more difficult.

And for a small brewery, the interesting question isn’t necessarily:

“Did Trump make beer more expensive?”

The more useful question is:

“How does a policy made in Washington eventually become a more expensive can, keg, ingredient, piece of equipment—or pint?”

The answer involves an unexpectedly complicated journey through global commodity markets, domestic manufacturers, tariffs, supply chains and, eventually, the brewery down the street.

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Some of our resources and links:

• Trouble Brewing: How Trump’s Liberation Day Tariffs Are Impacting Craft Beer
• Tariffs and Taps: How Trump’s Trade Policies Would Impact Craft Breweries
• It’s Time to Say Something About Canada’s Reaction to Trump’s Tariff (Opinion Piece by Lew Bryson)
• How Doubling Steel and Aluminum Tariffs Could Cripple America’s Craft Beer Industry

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The Craft Beer Industry Was Already Having a Rough Time

Before getting into Trump and tariffs, it is important to establish something that can easily get lost in political arguments:

The American craft beer industry was already struggling.

The Brewers Association’s 2025 national statistics show craft brewer volume sales declining approximately 4%. Retail dollar sales declined 2.8%, falling to approximately $28 billion.

The number of breweries has also been declining.

According to the Brewers Association’s July 2026 midyear report, approximately 9,344 breweries were operating in June 2026, down 1.8% from 9,515 in June 2025. Craft production was down another 4% during the first six months of 2026 compared with the first half of 2025.

That matters.

A brewery that was already operating comfortably on a five- or six-percent margin doesn’t have the same ability to absorb another increase in its costs as a multinational beverage company.

And the problems facing craft beer aren’t exclusively about ingredients.

Breweries have been dealing with:

• higher labor costs;
• higher real-estate costs;
• energy expenses;
• insurance;
• slower beer consumption;
• increased competition;
• changing consumer preferences;
• distributor challenges;
• declining packaged-beer sales;
• and the simple fact that there are now thousands upon thousands of breweries competing for consumers’ attention.

The Brewers Association’s 2026 midyear data nevertheless contain some encouraging signs. While overall production was down, 54% of surveyed breweries reported growth, and craft consumers’ reported engagement with craft beer increased. Taprooms were also outperforming several other brewery models.

So this isn’t a story about an industry disappearing.

It’s a story about an industry under pressure.

And tariffs are another pressure.

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The Aluminum Problem

If you want to understand Trump’s effect on craft beer, start with the aluminum can.

The humble beer can is one of the most important pieces of technology in modern craft brewing.

Cans are lightweight, stackable, recyclable, relatively durable, easier to transport than glass bottles and particularly useful for breweries that want to package beer for distribution.

They are also made out of aluminum.

And aluminum has become one of the most politically important metals in the American economy.

The Trump administration’s Section 232 tariff structure has placed a 50% tariff on covered aluminum products, including aluminum sheet and finished aluminum containers used for beverages. The Brewers Association says the current framework includes aluminum sheet and finished cans within the 50% tariff category, while some aluminum lids are treated differently.

At first glance, a brewery owner might reasonably think:

“I don’t import aluminum. I buy cans from an American supplier.”

And that would seem to solve the problem.

It doesn’t necessarily.

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The American Can That Isn’t Immune to Tariffs

This is one of the more fascinating aspects of the tariff issue.

A can can be made in America and still be affected by tariffs.

Why?

Because the American can manufacturer exists within a broader aluminum market.

The Brewers Association explained in August 2026 that U.S. aluminum pricing is influenced by both the global aluminum price and something called the Midwest Premium. That premium reflects the delivered price of aluminum in the U.S. market.

And tariffs can influence that price.

This creates an important distinction between:

“Did my brewery directly pay a tariff?”

and

“Did a tariff affect the price my brewery paid?”

Those aren’t necessarily the same thing.

A small brewery may purchase cans from an American manufacturer.

The manufacturer may purchase aluminum sheet from another American company.

That company may purchase or compete against material priced against the global aluminum market.

Tariffs alter the economics of that market.

Those increased costs can move through the supply chain.

Eventually, the brewery gets the bill.

The Brewers Association’s August analysis specifically noted that the Midwest Premium had grown substantially as a share of U.S. aluminum pricing and that tariff policy was contributing to the delivered cost of aluminum.

That means the tariff’s effect doesn’t stop at the customs dock.

It can move through the domestic market.

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The Recycling Complication

Here’s another wrinkle.

Aluminum is highly recyclable, and breweries commonly use cans containing recycled material.

So shouldn’t recycled aluminum protect breweries from tariffs on imported primary aluminum?

Not entirely.

The Brewers Association explains that the primary and recycled aluminum markets are interconnected. Even when a can contains substantial recycled material, the pricing of recycled aluminum can be influenced by the broader aluminum market.

In other words:

American brewery + American can + recycled aluminum ≠ completely insulated from tariff effects.

This is one of the reasons the issue is more complicated than simply asking which country manufactured a can.

The aluminum market is a market.

And markets don’t always respect the neat national boundaries we like to draw on a map.

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Why Small Breweries Feel This More

A giant beer company buys enormous quantities of cans.

A small brewery doesn’t.

That sounds like an obvious disadvantage—and it is.

Large buyers generally have greater purchasing power and can negotiate from a stronger position. A small independent brewery ordering comparatively modest quantities has fewer opportunities to use sheer volume to negotiate favorable pricing.

The Brewers Association notes that aluminum cans accounted for nearly 80% of off-premises craft beer volume in 2025, making aluminum particularly important to independent brewers.

Consider what that means.

Imagine a brewery that packages thousands of cases every year.

A relatively small increase in packaging cost is multiplied across:

• every can;
• every case;
• every pallet;
• every shipment;
• and eventually every beer sold.

The consumer may never see a line on their receipt saying:

“Trump aluminum tariff surcharge: $0.37.”

Instead, the cost may simply become part of the price of the beer.

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The Keg Problem

Cans get most of the attention because they’re visible.

But breweries don’t live on cans alone.

They use stainless-steel kegs.

And they use enormous amounts of stainless steel and other metal in the brewery itself.

Fermentation tanks.

Bright tanks.

Brewhouses.

Pipes.

Valves.

Heat exchangers.

Pumps.

Kegs.

Packaging equipment.

Storage equipment.

Some of these products or components are affected directly or indirectly by tariffs on steel and aluminum.

The Brewers Association has specifically warned that tariff policy is likely to keep costs elevated for craft brewers in areas including cans, kegs and brewing equipment.

This becomes particularly important when a brewery is trying to expand.

Imagine two breweries.

One is established and has no major capital projects planned.

The other wants to buy a new fermenter, upgrade its canning line or install additional cellar capacity.

The second brewery isn’t simply dealing with the cost of today’s beer.

It is dealing with the cost of tomorrow’s beer.

If equipment costs rise, expansion can become more expensive.

And that can influence decisions about whether a brewery adds capacity, opens another location, launches distribution or simply stays put.

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It’s Not Just Aluminum and Steel

If this were simply an aluminum story, it would be relatively straightforward.

But breweries are businesses with global supply chains.

And beer is made from ingredients and equipment that come from all over the world.

In July 2026, the U.S. Trade Representative finalized new Section 301 tariffs covering goods from approximately 60 economies. The Brewers Association reported that Australian and New Zealand hops, along with many Chinese brewing-equipment products, were among the brewery-related products facing a 12.5% tariff rate under the new framework.

That matters because craft beer loves specialty hops.

American breweries have spent decades building beers around distinctive varieties from around the world.

A brewery might use:

• American hops;
• Australian hops;
• New Zealand hops;
• European specialty malts;
• Canadian malt;
• imported yeast or fermentation products;
• foreign equipment components;
• American water;
• and American aluminum cans.

The beer may be brewed in Pennsylvania.

But the supply chain behind that beer can stretch around the world.

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New Zealand and Australian Hops

For hop lovers, this is particularly interesting.

Australian and New Zealand hops have become extremely important to modern American craft brewing.

Think of the flavors associated with many modern hazy IPAs:

Passionfruit.

Grapefruit.

Lime.

Tropical fruit.

Stone fruit.

White wine.

Pine.

Resin.

Brewers have increasingly turned to varieties from Australia and New Zealand to achieve particular aromatic profiles.

If imported hops become more expensive because of tariffs, breweries have several options.

They can:

Absorb the increase.

That hurts margins.

Raise the price.

Consumers pay more.

Use less of the expensive hop.

The beer changes.

Substitute another hop.

The beer changes again.

Find another supplier.

That may take time and may not produce the same sensory result.

This is why tariff policy isn’t necessarily just an accounting problem.

For some breweries, it can become a recipe problem.

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The Specialty-Malt Question

Hops get the headlines because hop-forward beer is such a defining part of American craft brewing.

But malt matters too.

Specialty malts can come from different countries, and certain brewing styles depend on ingredients that aren’t necessarily produced domestically at the same scale or with the same characteristics.

The Brewers Association has warned that imported hops, specialty malts, brewing equipment and other brewery inputs can be affected by the evolving tariff environment.

Again, however, there is an important exception worth mentioning:

Canadian barley and barley malt have received different treatment under USMCA.

The Brewers Association noted in June 2026 that duty-free Canadian barley and barley malt remained outside the proposed additional tariffs discussed at that time.

Which brings us to Canada.

And things get considerably more complicated there.

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Canada: Beer, Barley and a Complicated Relationship

Canada is important to American brewing.

It’s also America’s neighbor, major trading partner and an important source of agricultural products.

For brewers, Canadian barley and malt are particularly significant.

So changes in U.S.-Canada trade policy can have consequences far beyond the political arguments surrounding tariffs.

There is also another side to the Canadian dispute: Canadian beer itself.

In September 2026, the Trump administration issued a proclamation concerning Canadian alcoholic beverages. The White House announced that certain Canadian alcoholic beverages would be excluded from importation into the United States beginning September 29, 2026, while products covered by the earlier measures were subject to a 50% duty under the specified circumstances.

The administration’s stated rationale is that Canada has discriminated against U.S. alcoholic beverages.

That is the administration’s position and should be distinguished from the broader economic question of what the policy does to American beer businesses.

For an American brewery, Canadian beer can be both:

a competitor

and

a source of inputs.

That’s an unusual situation.

A trade dispute that makes imported Canadian beer more difficult or expensive can potentially reduce competition from Canadian products in the American market.

But trade restrictions involving Canada can also create uncertainty around the agricultural and manufacturing supply chains American brewers depend upon.

Trade policy rarely travels in only one direction.

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So Will Beer Prices Go Up?

Probably the more useful answer is:

There is upward pressure, but tariffs don’t automatically translate into a specific increase in the price of a pint.

A brewery has choices.

Suppose a brewery’s annual packaging expenses increase.

The brewery could absorb the increase.

That means lower margins.

Or it could increase prices.

That means consumers absorb the increase.

Or it could cut costs elsewhere.

That might mean fewer employees, fewer events, less marketing, fewer experimental batches or reduced capital investment.

Or it might simply accept that it will make less money.

The economic chain therefore looks something like this:

Tariff

↓

Higher input cost

↓

Supplier pricing

↓

Brewery cost of goods increases

↓

Brewery decides how much of the increase to absorb

↓

Potential price increase / reduced margin / cost-cutting

↓

Consumer eventually experiences some portion of the change

The important phrase is “some portion.”

A tariff doesn’t necessarily mean the consumer pays 100% of the tariff.

Nor does it necessarily mean the brewery absorbs 100%.

The cost can be distributed throughout the supply chain.

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But Beer Was Already Getting More Expensive

This is another important piece of context.

Craft beer had already experienced significant price increases before the current tariff environment.

Inflation, labor costs, transportation, ingredients, packaging and other expenses have all contributed to the cost of producing and selling beer.

The Brewers Association’s 2025 figures illustrate an interesting phenomenon: craft retail dollar sales fell less sharply than volume, with price increases contributing to the difference.

That means breweries have already been trying to navigate a difficult balancing act:

How much can you charge for a four-pack before the consumer decides that four beers simply aren’t worth that much money?

That’s a particularly serious question for independent breweries.

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The Consumer Is Part of the Equation

Ultimately, a brewery can only charge what somebody is willing to pay.

This is where tariffs intersect with consumer psychology.

Imagine a consumer walking into a brewery in 2027.

They see:

$9 pint

Then:

$10.50 pint

Then:

$12 pint

The consumer doesn’t necessarily know why the price increased.

Maybe it was aluminum.

Maybe it was malt.

Maybe wages.

Maybe insurance.

Maybe rent.

Maybe distribution.

Maybe the brewery simply raised prices.

Maybe all of the above.

And that creates a challenge for craft beer because craft beer’s greatest strength—its diversity and independence—is also one of its economic vulnerabilities.

Consumers have alternatives.

They can buy a domestic lager.

They can buy a macro beer.

They can buy wine.

They can make cocktails.

They can buy spirits.

They can buy nonalcoholic beer.

They can drink THC beverages where legal.

Or they can simply buy less alcohol.

The Brewers Association’s 2026 midyear report does provide an encouraging counterpoint: among surveyed craft consumers, monthly craft consumption increased year over year, and brewery visits increased as well.

So consumers haven’t abandoned craft beer.

But breweries still have to convince them that the experience is worth the price.

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The Small-Business Problem

This is where the tariff discussion becomes particularly important.

A brewery isn’t just a beer factory.

It’s often:

• a restaurant;
• a bar;
• an event venue;
• a community gathering place;
• a retailer;
• a local employer;
• a tourist destination;
• and sometimes a manufacturing operation all at once.

The Brewers Association estimates that craft brewing contributed approximately $71.8 billion to the U.S. economy in 2025 and supported more than 415,000 jobs when direct and indirect economic effects are included.

That means changes in brewery economics don’t stop at the brewhouse.

If a brewery cuts production, the effect can reach:

• employees;
• distributors;
• can manufacturers;
• maltsters;
• hop growers;
• farmers;
• restaurants;
• delivery companies;
• local contractors;
• musicians;
• event vendors;
• and nearby businesses that benefit from brewery traffic.

The economic ecosystem surrounding craft beer is much larger than the liquid inside the can.

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Is This All Bad News?

Not necessarily.

This is where the discussion becomes more nuanced.

Tariffs are intended, in part, to change economic behavior.

The argument for tariffs is generally that making imported products more expensive can encourage domestic production and reduce reliance on foreign supply chains.

If tariffs encourage more American production of aluminum, steel, equipment or other brewery inputs, there could eventually be benefits for domestic manufacturers.

That is a legitimate economic argument.

But the important word is:

eventually.

A brewery facing higher costs today has to survive today.

A hypothetical domestic manufacturing expansion five years from now doesn’t pay today’s electricity bill.

This creates the central tension:

Short-term cost

versus

Long-term industrial policy.

Whether the long-term benefits outweigh the short-term costs is a broader economic and political question rather than something that can be answered simply by looking at the price of a six-pack.

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The Bigger Problem May Be Uncertainty

Perhaps the most significant effect of the Trump administration’s trade policy on craft beer isn’t any single tariff.

It may be uncertainty.

Breweries make plans.

They buy equipment.

They sign contracts.

They develop recipes.

They order ingredients.

They negotiate distribution.

They plan seasonal releases.

They forecast revenue.

They decide whether to expand.

They decide whether to hire.

They decide whether to open another location.

All of those decisions become more difficult when a brewery doesn’t know what a particular piece of equipment, ingredient or packaging material will cost six months from now.

And trade policy has continued to change.

The Brewers Association’s 2026 updates show an evolving tariff landscape affecting aluminum, steel, hops, equipment and other brewery-related inputs.

For a giant corporation, uncertainty is expensive.

For a tiny brewery, uncertainty can be existential.

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Trump Didn’t Create the Craft Beer Slump

This deserves repeating.

If someone tells you that the current problems facing American craft beer began with Donald Trump, the historical record doesn’t support that simplistic explanation.

Craft beer’s current difficulties predate the present tariff environment.

Production has declined.

The brewery count has fallen.

Consumer behavior has changed.

Competition has intensified.

Costs have risen.

The industry has been working through a post-pandemic correction and a broader maturation of the American craft beer market.

The Brewers Association’s own 2026 data show that the industry was already contracting while also showing signs of resilience.

Trump’s policies therefore shouldn’t be viewed as the cause of the craft beer industry’s problems.

They are better understood as another economic variable affecting an industry that was already under pressure.

That distinction matters.

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But Trump Is Changing the Economic Environment Brewers Operate In

At the same time, it would be equally misleading to dismiss the effects of the administration’s trade policies.

The documented effects are tangible.

Aluminum tariffs influence aluminum pricing.

Steel tariffs influence steel pricing.

Tariffs on imported goods affect the cost of certain brewing equipment and ingredients.

Trade disputes create uncertainty.

And those costs can move through the brewing supply chain.

The Brewers Association has repeatedly raised these issues because independent breweries are particularly exposed to packaging and equipment costs.

The question isn’t whether trade policy affects breweries.

It does.

The more complicated question is how large the ultimate effect will be.

That will vary enormously from brewery to brewery.

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What Does This Mean for Your Local Brewery?

For the average beer drinker, the most meaningful effects may not be dramatic.

You probably aren’t going to walk into your favorite brewery and see a sign reading:

“SORRY, PRESIDENTIAL TARIFFS. PINTS NOW $14.”

Instead, the effects may be incremental.

Maybe a four-pack goes from $17 to $18.

Maybe a seasonal beer disappears because its imported hops became too expensive.

Maybe a brewery delays buying a new fermenter.

Maybe a tap list contains fewer beers.

Maybe a brewery changes packaging.

Maybe a brewer switches hop varieties.

Maybe a brewery chooses to distribute less beer and focus more heavily on its taproom.

Maybe none of those things happen.

That’s the difficulty in attributing a particular brewery’s business decision to a particular tariff.

Businesses have dozens of costs and dozens of variables.

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Pennsylvania Has More at Stake Than Most States

If the national craft-beer industry is feeling the effects of tariffs, Pennsylvania has a particularly interesting—and potentially complicated—position.

The Keystone State isn’t simply another state with a few breweries scattered around it.

Pennsylvania is one of the country’s major craft-brewing states.

According to the Brewers Association’s 2025 economic-impact data, Pennsylvania’s craft-brewing industry generated approximately $4.9 billion in economic output, second among all states behind California.

That makes Pennsylvania’s brewing industry economically significant enough that changes affecting breweries can ripple well beyond the taproom.

And Pennsylvania’s breweries are already operating in a difficult environment.

According to 2025 production data compiled from the Brewers Association, Pennsylvania produced approximately 1.92 million barrels of craft beer, down dramatically from 2.63 million barrels in 2024. That represented the state’s third consecutive annual decline in craft production.

So Pennsylvania’s brewers aren’t entering the tariff era from a position of unlimited growth.

They’re entering it while already trying to figure out how to sell less beer in a market with more competition and increasingly price-conscious consumers.

That makes every additional cost matter.

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Pennsylvania’s Brewery Industry Is Big—and Particularly Diverse

Pennsylvania has another characteristic that makes it interesting.

Its craft-beer industry isn’t concentrated exclusively among enormous breweries.

The state has a huge number of small and independent breweries spread throughout Philadelphia, Pittsburgh, the Lehigh Valley, the Poconos, Central Pennsylvania, Erie, Lancaster, York, Harrisburg and dozens of smaller communities.

That means Pennsylvania’s beer economy includes everything from relatively large regional producers to tiny neighborhood breweries.

The tariff consequences therefore won’t be uniform.

A brewery that sells primarily draft beer directly from its taproom has a different exposure than a brewery selling thousands of cases of canned beer through distributors.

A brewery that buys American-made equipment has a different exposure than one importing specialized equipment.

A brewery using mostly domestic hops has a different exposure than one heavily dependent upon New Zealand or Australian varieties.

And a brewery producing 500 barrels a year has a radically different purchasing position from a brewery producing tens of thousands.

But there is one Pennsylvania characteristic that makes the aluminum issue particularly important:

Pennsylvania has a large packaged-beer market and a large number of independent breweries competing for shelf space.

When packaging becomes more expensive, those breweries have to make difficult decisions about where that money comes from.

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Fegley’s Brew Works: A Pennsylvania Brewery Already Talking About the Problem

One of the clearest Pennsylvania examples comes from Fegley’s Brew Works, the Lehigh Valley brewery with locations in Bethlehem and Allentown.

In February 2025, before the Trump administration’s aluminum and steel tariffs took effect, owner Jeff Fegley publicly warned that higher metal costs could hurt Pennsylvania’s craft-beer industry.

Fegley specifically connected higher aluminum costs to potentially higher can prices and, ultimately, higher consumer prices.

He also pointed out that Pennsylvania’s craft-beer industry was already dealing with a difficult marketplace, including changing consumer behavior and competition from other beverage categories.

That distinction is important.

Fegley’s concern wasn’t simply:

“Aluminum is going to cost more.”

It was essentially:

“Aluminum is going to cost more in an industry that is already struggling.”

That’s a much bigger problem.

A brewery can potentially absorb a cost increase when business is booming.

It is considerably harder to do when margins are already under pressure.

Fegley’s comments also highlight something particularly important for Pennsylvania:

craft beer isn’t competing only against other beer.

Pennsylvania’s beverage market includes breweries, distilleries, wineries, RTDs and other alcohol categories.

If a craft brewery raises prices, consumers have alternatives.

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Human Robot: When the Numbers Become Real

Philadelphia provides an even more concrete example.

In March 2025, CBS Philadelphia interviewed Jake Atkinson, owner of Human Robot Brewery, about the aluminum tariffs.

Atkinson said that if the situation continued, beer prices would have to rise. He described the situation as particularly difficult for a small business because of the uncertainty surrounding changing tariff policy.

Human Robot is an especially useful example because Philadelphia’s beer scene is heavily populated by independent breweries operating at relatively small scales.

Those breweries don’t have the purchasing power of multinational beverage companies.

They can’t necessarily negotiate the same prices.

And they can’t necessarily spread a relatively small increase across hundreds of thousands or millions of cases.

For a small brewery, a few cents per can can become a substantial annual expense.

And if the brewery doesn’t raise prices, that money has to come from somewhere else.

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Love City Brewing: The “American-Made Can” Problem

Perhaps the most useful Pennsylvania example is Love City Brewing in Philadelphia.

Co-founder Melissa Walter told CBS Philadelphia that Love City packaged approximately 150 cases—roughly 3,600 cans—on a typical canning day, with the brewery operating its canning line roughly three times per week.

The really interesting part, however, was the source of the cans.

The cans themselves were manufactured in the United States.

But the raw aluminum used to produce them frequently came from Canada.

Walter said the brewery spends tens of thousands of dollars on aluminum, meaning even a substantial percentage increase in raw-material costs could have a significant effect on the brewery’s finances.

This illustrates one of the most important points in the entire tariff debate:

“Made in America” doesn’t necessarily mean “unaffected by tariffs.”

A Pennsylvania brewery can buy an American-made can from an American supplier and still be affected by tariffs on the aluminum entering the American supply chain.

That is precisely why the Brewers Association has continued lobbying for changes to aluminum tariff policy.

The association has explained that American can manufacturers themselves can depend on imported aluminum, particularly material originating in Canada.

For Love City, this wasn’t an abstract economic theory.

It was an actual purchasing expense.

And when Walter discussed the possibility of increased costs, she also raised another issue: maintaining employee compensation and benefits.

That is an important part of the story.

When a brewery absorbs higher costs, the consequence isn’t necessarily just a lower profit for the owner.

It can potentially affect:

• wages;
• benefits;
• staffing;
• hours;
• new hires;
• production;
• taproom investment;
• and expansion.

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Sherman Street Beer Company: Hops, Malt and Aluminum All at Once

Philadelphia isn’t the only Pennsylvania market where brewers were worried.

In Allentown, Sherman Street Beer Company owner Beau Baden discussed the tariff issue with The Pennsylvania Independent in April 2025.

Baden had a particularly interesting problem because his brewery imported hops and malt from countries around the world, while also relying heavily on aluminum cans.

And he had just received an order of approximately 20,000 cans when he was discussing the potential financial impact of the tariffs.

His concern was simple: he didn’t yet know exactly what the bill was going to look like.

That uncertainty is worth emphasizing.

A tariff doesn’t always arrive at the brewery with a neatly labeled invoice saying:

Aluminum tariff: $X.

The effects can move through suppliers and distributors.

That makes budgeting difficult.

Baden also described the fundamental problem facing small breweries: margins are already thin.

He told The Pennsylvania Independent that the brewery might have to absorb the increased costs initially and reassess its position later.

That is a very different strategy from immediately raising prices.

And it demonstrates the choices breweries actually face.

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Pennsylvania’s Brewery Leaders Were Warning About This Before the Tariffs Hit

The Pennsylvania examples aren’t isolated.

In February and April 2025, Pennsylvania brewery owners were publicly discussing the potential impact of Trump’s steel and aluminum tariffs before the costs had fully worked their way through the supply chain.

Fegley’s Brew Works was one example.

Human Robot and Love City were others.

Sherman Street Beer Company provided another.

And Pennsylvania Governor Josh Shapiro even visited Fegley’s Brew Works in Bethlehem in April 2025 to discuss the potential effects of tariffs on Pennsylvania small businesses.

That doesn’t mean Pennsylvania breweries have experienced identical financial consequences.

They haven’t.

But it demonstrates that tariff exposure was an identifiable concern among Pennsylvania brewers before the full effects of the policy were known.

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Why Pennsylvania Could Be Especially Vulnerable

There are several reasons Pennsylvania deserves special attention.

1. Pennsylvania has a huge craft-brewing economy

The Brewers Association estimates approximately $4.9 billion in craft-brewing economic output in Pennsylvania during 2025, second nationally.

When the industry is that large, even relatively modest changes in operating costs can have substantial aggregate effects.

2. Pennsylvania has hundreds of breweries

The state has one of the country’s largest brewery populations.

That means tariff effects aren’t concentrated in a handful of companies.

They can reach hundreds of independent businesses.

3. Pennsylvania’s craft industry is already contracting

The state’s craft production fell from approximately 2.63 million barrels in 2024 to 1.92 million barrels in 2025, according to Brewers Association data reported by Breweries in PA.

That makes the timing particularly significant.

4. Pennsylvania breweries compete in a crowded beverage market

As Fegley pointed out, Pennsylvania breweries aren’t operating in isolation.

They compete with:

• other breweries;
• distilleries;
• ready-to-drink beverages;
• wine;
• spirits;
• nonalcoholic drinks;
• and increasingly diverse consumer choices.

Higher beer prices can therefore have consequences beyond the brewery itself.

5. The state’s geographic position makes regional supply chains important

Pennsylvania sits between major population centers in the Northeast and has enormous transportation connections.

Philadelphia is close to New York and New Jersey.

Pittsburgh sits at a major crossroads between the Midwest and Northeast.

Central Pennsylvania sits between major population centers.

That creates tremendous advantages for breweries—but also means Pennsylvania breweries are embedded within complicated regional distribution networks.

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But Pennsylvania Also Has Some Advantages

The story isn’t exclusively negative.

Pennsylvania’s size and established brewing culture can work in its favor.

The state has:

• established malt producers;
• hop growers;
• brewing-equipment businesses;
• packaging suppliers;
• distributors;
• a large consumer base;
• a mature brewery tourism culture;
• and a long-established network of independent breweries.

The state also has substantial agricultural resources.

That gives Pennsylvania breweries opportunities to shorten portions of their supply chains.

For example, a brewer can potentially emphasize Pennsylvania-grown ingredients or work with regional suppliers.

That won’t solve the aluminum problem.

It won’t eliminate tariffs on imported equipment.

And it won’t necessarily make domestic ingredients cheaper.

But it provides Pennsylvania breweries with something valuable:

options.

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Pennsylvania’s “Brews to Barns” Experiment

Pennsylvania is also doing something particularly interesting at the state level.

A 2026 legislative effort known as Brews to Barns was developed to help connect Pennsylvania breweries with Pennsylvania agricultural producers.

The legislation includes provisions intended to support the use of Pennsylvania agricultural products by breweries, while also providing financial relief mechanisms for brewers.

According to the Brewers Association, Pennsylvania’s version developed from a similar Texas proposal and was being pursued as a way to help small independent brewers navigate a difficult environment that includes tariffs, fuel prices and rising aluminum costs.

That is an interesting response to the tariff environment.

Instead of trying to solve the international trade problem, Pennsylvania can potentially help breweries strengthen the parts of their supply chains that can be localized.

If a Pennsylvania brewery can source more of its agricultural inputs from Pennsylvania, it potentially reduces exposure to some international trade volatility.

Again, though, that isn’t a magic solution.

You can’t grow aluminum in Lancaster County.

You can’t necessarily manufacture every specialized brewing component in Pennsylvania.

And a brewery making a New Zealand-hopped IPA can’t simply substitute a Pennsylvania hop and expect an identical beer.

But localization can reduce exposure at the margins.

And when you’re operating on thin margins, margins matter.

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The Pennsylvania Brewery Examples

The following breweries have publicly discussed tariff-related concerns or consequences and are therefore useful examples for anyone writing about the Pennsylvania impact:

The first four are particularly useful because there is specific reporting connecting the brewery or owner to tariff concerns, rather than simply assuming that every Pennsylvania brewery must have been affected.

That’s an important distinction.

It would be misleading to publish a list of Pennsylvania breweries and claim that all of them have been harmed by tariffs without evidence from those individual businesses.

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What About Troegs, Yuengling, Yards and Other Pennsylvania Breweries?

This is where caution is warranted.

Pennsylvania has some very large and recognizable breweries—Yuengling, Tröegs, Victory, Yards, Neshaminy Creek, Weyerbacher and many others—but I would not claim that any of these particular breweries have suffered a specific tariff-related financial impact unless the brewery itself, a credible industry publication, financial disclosure or another reliable source documents it.

That’s especially important because tariff exposure depends heavily on:

• packaging contracts;
• purchasing volume;
• domestic versus imported materials;
• equipment purchases;
• hop varieties;
• malt sources;
• distribution strategy;
• and the timing of contracts.

Two breweries in the same city can therefore experience very different effects.

A Pennsylvania brewery is not automatically “tariff affected” in the same way as another Pennsylvania brewery.

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The Bigger Pennsylvania Question

The most interesting question for Pennsylvania isn’t necessarily whether tariffs will cause every brewery to raise its prices.

It’s what happens when several economic pressures arrive simultaneously.

Pennsylvania’s craft industry is already dealing with declining production.

Then add:

higher aluminum costs

higher equipment costs

potentially higher imported ingredient costs

labor costs

energy costs

distribution costs

consumer resistance to higher prices

and you have a much more complicated economic equation.

The danger isn’t necessarily one enormous cost increase.

It is death by a thousand small increases.

A brewery doesn’t have to lose $500,000 because of tariffs to feel the consequences.

It might lose:

$5,000 here.

$10,000 there.

Another $15,000 in packaging.

Another $8,000 in equipment.

Another increase in transportation.

Another increase in insurance.

And suddenly the brewery’s annual profit has become considerably smaller.

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Pennsylvania’s Craft-Beer Future May Depend on Adaptation

There is, however, an encouraging element to this story.

Pennsylvania breweries have survived enormous changes before.

The state went from having relatively few craft breweries to becoming one of America’s most important brewing states.

Brewers have repeatedly adapted to changes in consumer tastes, distribution laws, ingredients, packaging and technology.

They have also become increasingly creative about their business models.

Taprooms.

Restaurants.

Beer gardens.

Events.

Nonalcoholic products.

Cider.

Spirits.

Food.

Merchandise.

Brewery tourism.

Direct-to-consumer experiences.

The modern Pennsylvania brewery is much more than a factory producing beer.

That flexibility may become increasingly important.

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The Keystone State’s Tariff Story

Ultimately, Pennsylvania provides a useful microcosm of the national story.

Trump’s tariffs did not create Pennsylvania’s craft-beer problems.

The state’s breweries were already dealing with declining production and a changing marketplace.

But tariffs add another variable.

And because Pennsylvania has such a large and economically important craft-brewing industry, the consequences potentially extend much further than the breweries themselves.

The question isn’t simply:

“Will Pennsylvania beer become more expensive?”

Some beer probably will.

The more interesting questions are:

Which breweries can absorb the additional costs?

Which will pass them on to consumers?

Which will change ingredients or packaging?

Which will postpone expansion?

Which will localize more of their supply chain?

And perhaps most importantly:

Which breweries can adapt quickly enough to survive another difficult period?

Pennsylvania has one of the largest craft-beer economies in America.

It also has one of the largest collections of independent breweries.

That combination means the Keystone State could become an especially interesting place to watch the long-term effects of America’s new trade environment.

Because when Washington changes the rules of the global economy, the consequences don’t remain in Washington.

Eventually, they show up in Allentown.

Philadelphia.

Erie.

Pittsburgh.

Harrisburg.

Lancaster.

Scranton.

And, eventually, at the tap.

1. Pennsylvania vs. Other Major Craft-Beer States

This would be an excellent graphic for the Pennsylvania section because it establishes why Pennsylvania deserves special attention.

Pennsylvania had 538 craft breweries in 2025, second only to California.

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What This Means for Craft Beer as a Whole

The American craft beer industry has always been built on experimentation.

That experimentation isn’t limited to flavors.

Craft brewers experiment with:

• ingredients;
• equipment;
• packaging;
• business models;
• taproom concepts;
• distribution;
• collaborations;
• events;
• and consumer experiences.

Tariffs could potentially make some forms of experimentation more expensive.

A brewery considering an imported canning system might reconsider.

A brewer experimenting with expensive imported hops might use less.

A brewery thinking about adding a new cellar tank might delay the purchase.

Those decisions don’t necessarily kill innovation.

But they can influence which innovations are economically practical.

And that is ultimately the most interesting part of the story.

4. The National Craft-Beer Contraction

I’d also include one national chart near the beginning of the article, because it gives readers the context they need before we start talking about tariffs.

The Brewers Association reports that U.S. craft production fell 4% in 2025 to 22.034 million barrels, following a 3.9% decline in 2024.

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From the Oval Office to Your Pint Glass

The distance between Washington and your local brewery may seem enormous.

It isn’t.

A tariff can begin as a presidential proclamation.

It can become a change in the price of aluminum.

That can influence the price of can sheet.

The can manufacturer adjusts its pricing.

The distributor adjusts its costs.

The brewery receives a higher packaging bill.

The brewery calculates its margins.

The owner decides whether to absorb the increase.

The brewer releases a new IPA.

You walk into the taproom.

And you pay for it.

That’s how government policy becomes beer.

Not instantly.

Not always directly.

And not always predictably.

But through the interconnected machinery of the modern economy.

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The Bottom Line

The effect of Donald Trump’s policies on American craft beer is neither as simple as “Trump is killing craft beer” nor as simple as “tariffs will bring manufacturing back and everything will be fine.”

The reality is considerably more complicated.

The craft beer industry was already contracting before the current tariff regime.

At the same time, the administration’s trade policies have created real additional costs and uncertainty for breweries, particularly around aluminum, steel, packaging, equipment and certain imported ingredients.

The aluminum issue may be the clearest example. A brewery doesn’t necessarily have to import an aluminum can to feel the effects of aluminum tariffs. Domestic cans can be connected to a broader aluminum pricing structure influenced by tariff policy.

Meanwhile, tariffs affecting Australian and New Zealand hops and Chinese brewing equipment illustrate how the consequences extend beyond packaging.

And the increasingly complicated relationship with Canada demonstrates just how interconnected American brewing is with its neighbors and international suppliers.

For consumers, the eventual consequences may be subtle:

A slightly more expensive four-pack.

A different hop variety.

A delayed brewery expansion.

A smaller tap list.

A brewery choosing to focus more heavily on its taproom.

Or perhaps nothing noticeable at all.

For some breweries, however, several small increases arriving simultaneously could make the difference between comfortable operation and another difficult year.

And that may be the real story of Trump’s effect on craft beer.

The tariff isn’t the beer.

It’s one more ingredient in the recipe.

And for an industry already trying to figure out what the next version of American craft beer looks like, it’s an ingredient that brewers didn’t necessarily order—but now have to figure out how to work with.

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Sources & Further Reading

Brewers Association

1. “From Tariff to Tap: How Aluminum Costs Reach Brewers” — Brewers Association, August 26, 2026.
   Detailed explanation of aluminum pricing, the Midwest Premium, recycled aluminum and how tariff-related costs can reach breweries.
2. “Restructured Aluminum Tariffs Continue to Pressure Craft Brewers” — Brewers Association, April 3, 2026.
   Discussion of the administration’s Section 232 tariff framework and its implications for cans, kegs and brewing equipment.
3. “New Section 301 Tariffs Take Effect” — Brewers Association, July 24, 2026.
   Covers the 2026 Section 301 tariff changes and their effects on Australian/New Zealand hops and Chinese brewing equipment.
4. “2026 Midyear Report: Pressure Persists as Signs of Stability Emerge” — Brewers Association, July 22, 2026.
   Industry production, brewery-count and consumer-engagement data for the first half of 2026.
5. National Beer Sales & Production Data — Brewers Association.
   National craft-beer production and sales statistics, including 2025 volume and retail-dollar data.
6. Economic Impact Data — Brewers Association.
   Estimates of the craft brewing industry’s contribution to the U.S. economy and employment.

U.S. Government

7. The White House, “Excluding Certain Canadian Alcoholic Beverages From Importation Into the United States…” — September 8, 2026.
   Primary-source documentation concerning the administration’s September 2026 action involving Canadian alcoholic beverages.
8. The White House, “Modifying the Scope of Products of Canada Subject to the Additional Duties…” — September 8, 2026.
   Primary-source documentation concerning the September 2026 modifications to Canadian-product duties.

Beer Industry

9. National Beer Wholesalers Association, “Tariffs and Trade.”
   Industry perspective on tariffs affecting aluminum, steel, imported beverages and the broader American beer distribution system.

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Bibliography

Brewers Association. From Tariff to Tap: How Aluminum Costs Reach Brewers. August 26, 2026.

Brewers Association. National Beer Sales & Production Data. 2026.

Brewers Association. New Section 301 Tariffs Take Effect. July 24, 2026.

Brewers Association. Restructured Aluminum Tariffs Continue to Pressure Craft Brewers. April 3, 2026.

Brewers Association. 2026 Midyear Report: Pressure Persists as Signs of Stability Emerge. July 22, 2026.

Brewers Association. Economic Impact Data. 2026.

National Beer Wholesalers Association. Tariffs and Trade. 2026.

The White House. Excluding Certain Canadian Alcoholic Beverages From Importation Into the United States in Response to Continued Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages. September 8, 2026.

The White House. Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages. September 8, 2026.

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Editorial note: Because tariff policy is changing rapidly, this article should be treated as a September 17, 2026 snapshot rather than a timeless explanation. Tariff rates, exemptions, affected countries and product classifications can change through subsequent presidential actions, USTR decisions, trade agreements, litigation or congressional action.

 

 

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