Trade - The Beer Thrillers

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

B. Kline — Thu, 17 Sep 2026 21:10:34 +0000

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.

Craft Brewers Confront Higher Packaging Costs Under Trump Trade Policies

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.

Some of our resources and links:

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Pennsylvania Has More at Stake Than Most States

Trump’s Tariff Policies are Affecting Pennsylvanian Breweries

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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:

Brewery	Location	What has been publicly discussed
Love City Brewing	Philadelphia	Aluminum costs, imported raw aluminum, packaging expenses, employee benefits
Human Robot Brewery	Philadelphia	Potential beer-price increases resulting from tariffs
Fegley’s Brew Works	Bethlehem/Allentown	Aluminum and steel costs, consumer prices and existing industry pressures
Sherman Street Beer Company	Allentown	Imported hops/malt, aluminum cans and uncertainty over tariff-related costs
Lavery Brewing Company	Erie	Statewide small-brewer concerns; Lavery owner Jason Lavery has also been involved in Brewers Association advocacy around the issue

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.

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.

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.

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.

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 is one of America’s largest craft-beer economies

2025 economic impact of craft breweries in the five states with the largest total economic output.

Source: Brewers Association, 2025 Economic Impact Data.

Pennsylvania ranked second among U.S. states in craft-brewing economic impact in 2025, generating nearly $5 billion in economic activity. Source: Brewers Association.

2. Pennsylvania Craft-Beer Production

I’d put this directly into the section discussing the state’s existing problems.

The important point here is that tariffs are arriving while Pennsylvania craft beer is already dealing with contraction.

The current Brewers Association data give us a 2025 Pennsylvania production figure of 2,004,382 barrels, while the BA’s 2024 data reported Pennsylvania at more than 2.6 million barrels.

Pennsylvania craft-beer production has fallen sharply

Annual craft-beer production in Pennsylvania. The decline illustrates the difficult market conditions breweries were already facing before the current tariff environment fully developed.

Sources: Brewers Association 2024 and 2025 state craft-beer statistics. Figures are craft-beer production, measured in barrels.

Pennsylvania’s craft-beer production fell substantially from 2024 to 2025. Tariffs therefore entered an industry already dealing with declining production rather than a rapidly expanding market.

3. Pennsylvania’s Craft-Beer Footprint

This might actually be my favorite Pennsylvania graphic.

It shows that Pennsylvania has a huge number of breweries relative to other major craft states, while also having enormous production.

Pennsylvania has one of America’s largest brewery populations

Number of craft breweries operating in the five states with the largest craft-brewery counts in 2025.

Source: Brewers Association, State Craft Beer Sales & Production Statistics, 2025.

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

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.

American craft beer entered the tariff era already contracting

U.S. craft-beer production declined in both 2024 and 2025, illustrating that the industry’s current challenges predate the latest tariff environment.

Source: Brewers Association. 2024 production: 23.1 million barrels. 2025 production: 22.034 million barrels.

Craft beer’s current difficulties did not begin with Trump’s tariff policies. U.S. craft production declined in both 2024 and 2025, with 2025 production falling another 4% to 22.034 million barrels.

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.

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.

Sources & Further Reading

Brewers Association

“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.
“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.
“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.
“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.
National Beer Sales & Production Data — Brewers Association.
National craft-beer production and sales statistics, including 2025 volume and retail-dollar data.
Economic Impact Data — Brewers Association.
Estimates of the craft brewing industry’s contribution to the U.S. economy and employment.

U.S. Government

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.
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

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

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.

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

B. Kline — Thu, 05 Jun 2025 01:17:21 +0000

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.

Sources:

See Our Related Articles

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Trouble Brewing: How Trump’s Liberation Day Tariffs Are Impacting Craft Beer

B. Kline — Wed, 02 Apr 2025 13:01:00 +0000

Trouble Brewing: How Trump’s Liberation Day Tariffs Are Impacting Craft Beer

The craft beer industry, long celebrated for its creativity and community-driven ethos, is facing a new challenge in 2025: President Donald Trump’s “Liberation Day” tariffs. These sweeping trade measures, including a universal 10% tariff on imports and targeted levies of up to 25% on steel, aluminum, and goods from Canada and Mexico, have sent shockwaves through the brewing world. For an industry already grappling with shifting consumer preferences and post-pandemic recovery, the tariffs could reshape the landscape of American craft beer. (See our previous article – Trump’s Tariffs, posted November 2024.)

Trump’s Tariffs and How They Might Impact Craft Brewing

The Tariffs Explained

President Trump’s “Liberation Day” tariffs aim to protect domestic industries by imposing broad import taxes. However, their impact on craft brewing is particularly severe due to the industry’s reliance on imported materials:

Aluminum Cans: A 25% tariff on imported aluminum directly affects breweries that use cans for packaging. Nearly all cans used by U.S. brewers are sourced internationally, making this tariff a major cost driver
Steel Kegs: Most steel kegs used in American breweries are manufactured in Germany. The 25% tariff on finished steel products raises keg prices significantly
Key Ingredients: Canadian barley and malt—essential for many craft beer recipes—are now subject to tariffs. Similarly, fruits like raspberries sourced from Mexico face increased costs

These tariffs come at a time when imports of beer and brewing materials are substantial. In 2024 alone, beer imports to the U.S. totaled $7.5 billion, with Mexico accounting for $6.3 billion of that figure. The ripple effects of these measures are being felt across the supply chain.

Economic Impact on Craft Brewers

The financial strain imposed by these tariffs is already apparent:

Rising Costs:
- Breweries like Port City Brewing in Virginia report that their pilsner malt from Canada—essential to their recipes—is subject to a 25% tariff. Founder Bill Butcher estimates this could raise the price of a six-pack from $12.99 to $18.99
- Monument City Brewing in Baltimore predicts similar price hikes for their beers due to increased costs for aluminum cans and imported barley

Profit Margins Under Pressure:
- Small breweries often operate with tight margins, leaving little room to absorb cost increases. Decisions such as passing costs onto consumers or cutting profitability are becoming unavoidable
- Some brewers are stockpiling cans or switching packaging methods (e.g., painted cans instead of shrink-wrapped sleeves) to mitigate immediate impacts
Export Challenges:
- Canada, the largest foreign market for U.S. craft beer (accounting for 38% of exports), has retaliated with its own tariffs on American goods. Canadian consumers are boycotting U.S. beers, leading importers to cancel order.
- An Instagram post by Pints and Panels about Tariffs and Alcohol (courtesy of Em Sauter, of Pints and Panels)

Pennsylvania’s Brewing Scene: A Case Study

Pennsylvania has one of the largest craft brewing industries in the U.S., with over 400 breweries contributing significantly to local economies and communities. The state’s brewers are uniquely vulnerable to these tariffs due to their reliance on imported materials.

Material Costs:
- Breweries in Pennsylvania often use imported aluminum cans and Canadian malt, both subject to tariffs. These cost increases could force smaller brewers to raise prices or reduce offerings.
Competitive Pressure:
- Larger breweries like Molson Coors, which source materials domestically, may weather the tariffs better than smaller operations reliant on international supply chain. Pennsylvania’s independent brewers must innovate or risk losing market share.

Community Impact:
- With higher beer prices looming, consumers may opt for cheaper alternatives like hard seltzers or cocktails—a trend already encroaching on craft beer sales. This could hurt local breweries that rely heavily on loyal customer bases.

Broader Industry Challenges

The Liberation Day tariffs exacerbate existing issues within the craft beer sector:

Changing Consumer Preferences: Millennials and Gen Z are drinking less beer overall, favoring hard seltzers and ready-to-drink cocktails instead
Post-Pandemic Recovery: Many brewpubs are still struggling to rebound from COVID-19 closures and reduced foot traffic
Market Saturation: The number of breweries in the U.S. has grown rapidly over the past decade, leading to fierce competition for shelf space and consumer attention

A fun meme about Trump’s Liberation Day Tariffs and IPAs

What Lies Ahead?

Craft brewers are exploring strategies to adapt:

Localization: Emphasizing local ingredients and branding could help breweries differentiate themselves in a crowded market.
Innovation: Experimenting with new packaging methods or alternative ingredients may mitigate some tariff-related costs.
Advocacy: Industry groups like the Brewers Association are lobbying for clarity on tariff rules and potential exemptions for critical brewing materials

For Pennsylvania’s brewers—and craft beer makers nationwide—the coming months will be pivotal in determining whether they can weather this storm or whether these tariffs will fundamentally alter the industry.

Conclusion

Trump’s Liberation Day tariffs have introduced unprecedented challenges for America’s craft beer industry, threatening its affordability and accessibility while squeezing small businesses already operating on razor-thin margins. As brewers grapple with rising costs and shifting consumer dynamics, their resilience will be tested like never before.

For beer lovers across the country—and especially in Pennsylvania—the question remains: How much are we willing to pay for our favorite pint?

There is definitely a lot more to all of this, and it will be unfolding. The Brewer’s Association covered much of this here: Trump Administration Slapping 25% Tariffs on Canned Beer Imports and Empty Can Imports from Across the Globe.

From Perplexity

The “Liberation Day” tariffs announced by President Trump, which include a universal 10% tariff on all imports and additional targeted tariffs on specific goods and countries, are expected to have significant implications for the U.S. craft brewing industry, particularly in states like Pennsylvania.

Impact on Craft Brewing Industry

Increased Material Costs:
- The tariffs include a 25% levy on imported steel and aluminum, which are critical for the production of cans and kegs used by breweries. Many craft brewers rely on aluminum cans and steel kegs imported from countries like Germany, meaning these tariffs will raise production costs significantly

- Breweries that source ingredients such as barley, malt, or fruits from countries subject to reciprocal tariffs (e.g., Mexico) will face higher expenses, further straining their budgets
Market Challenges:
- With rising costs, some breweries may reduce their product offerings or shift packaging strategies, such as moving away from aluminum cans altogether. This could limit consumer choices and hurt smaller breweries that lack the resources to adapt quickly
- Export markets for U.S. beer may also shrink due to retaliatory tariffs from other nations, particularly Canada, which is a major importer of American craft beer. Losing access to this market could be devastating for breweries in Pennsylvania that rely on exports
Consumer Sentiment:
- Economic uncertainty stemming from these tariffs may lead to reduced consumer spending on discretionary items like craft beer. This is especially concerning as the industry is already facing challenges from shifting consumer preferences toward hard seltzers and cocktails.

Final Thoughts

The brewing industry is already in trouble, I don’t want to say ‘dire straits’, but it is getting there. Breweries are closing somewhat regularly (some recent examples: Butler Brew Works, IMBib, Bucket Brigade, Gateway, and Little Mutants). The ever growing costs of doing business, let alone a business with so many different and varying costs – such as restaurant costs, brewing costs, distribution costs, etc, etc, etc. The brewing business is also heavily regulated in all aspects, which also have costs. All of these are major factors. Add this to a declining market, and as we’ve been saying “the bubble has definitely burst” on the craft brewing industry. This almost feels like a death knell to many. And I think is why we saw an increase of closures in the past months, in anticipation of it all. With the next generation of drinkers not completely on board with the craft beer industry, the older and tiring out generation settling for hop water, non alcoholics, and other form of alcohols, the industry is certainly shrinking.

One hopes this won’t be a final nail, the coffin being closed. But unfortunately we can’t do anything but ride it out, and find out, and see what time shows us.

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The Beer Thrillers on LinkTree can be found here: The Beer Thrillers LinkTree.

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 April 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!

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Tariffs and Taps: How Trump’s Trade Policies Would Impact Craft Breweries

B. Kline — Sat, 02 Nov 2024 05:32:18 +0000

Tariffs and Taps: How Trump’s Trade Policies Would Impact Craft Breweries

As craft beer enthusiasts, we often focus on the latest hop varieties or innovative brewing techniques. However, there’s a less palatable topic brewing in the background that’s affecting our favorite local breweries: tariffs. Let’s dive into how Donald Trump’s trade policies have been shaking up the craft beer world.

Trump’s Tariffs and How They Might Impact Craft Brewing

Aluminum Woes: More Than Just a Can of Trouble

Remember when cans were the hot new thing in craft beer? Well, they still are, but they’re causing headaches for brewers. Trump’s 10% tariff on aluminum has hit the industry hard. It’s not just a drop in the bucket – the Beer Institute estimated a whopping $347 million tax increase on the beer industry due to these tariffs. Take Oskar Blues, for example. This Colorado-based craft brewery pioneer estimated the tariff would cost them an extra $400,000 per year. That’s a lot of potential new brews or taproom upgrades going down the drain!

Squeezing Profits Like a Dry-Hopped IPA

Craft breweries operate on tight margins as it is. With these added costs, they’re feeling the squeeze:

Many breweries are struggling to pass on these costs to beer lovers (that’s us!).
Some are having to rethink their growth plans or even consider job cuts.
Competing with big beer is becoming even tougher, as the giants can more easily absorb these costs.

What’s on Tap for the Future?

As we look ahead, the future for craft breweries under these policies remains uncertain:

If Trump were to be re-elected, we might see these tariffs stick around or even increase.
Breweries might have to get creative with cost-cutting, potentially affecting the quality or variety of our favorite brews.
The industry’s impressive job creation streak could slow down.

Bottom Line: It’s Not All Foam and Games

While we love to focus on the fun side of craft beer, it’s crucial to understand the challenges our local brewers face. These tariffs have effectively canceled out some of the tax benefits craft breweries were enjoying, creating a bitter economic brew. So, the next time you’re sipping on your favorite local IPA or stout, remember the complex world behind that delicious beverage. And maybe, just maybe, consider supporting your local craft breweries a little extra – they might need it more than ever. Cheers to hoping for clearer skies (and cheaper cans) for our craft beer community!

How Trump’s Trade Policies Are Impacting Craft Breweries

(Information, extrapolated using economists, analysts, and Donald Trump’s first term. All information is sourced and cited at the end of the article.)

Donald Trump’s tariffs have had significant implications for craft breweries in the United States:

Impact on Costs

The 10% tariff on aluminum imposed by the Trump administration has directly affected craft breweries’ production costs.

This is particularly impactful because:

Many craft breweries have increasingly turned to aluminum cans for packaging their beer
Aluminum is a major input cost for brewers, with cans accounting for a significant portion of packaging

The Beer Institute estimated that the aluminum tariffs resulted in a $347 million tax increase on the beer industry.

Effects on Business Operations

The tariffs have put strain on craft breweries in several ways:

Reduced profit margins, as breweries often struggle to pass on increased costs to consumers
Potential job losses across the beer industry
Limitations on growth and investment in local communities

For example, Oskar Blues brewery estimated the tariff would cost their business an additional $400,000 per year.

Long-term Concerns

Craft brewers face ongoing challenges due to the tariffs:

Difficulty competing with larger beer brands that can more easily absorb cost increases
Potential need to cut costs in other areas, such as labor or ingredients
Concerns about the industry’s ability to continue growing and creating jobs

Future Outlook

If Trump were to be re-elected, craft breweries could expect:

Continuation or potential increase of existing tariffs on aluminum and steel
Possible new tariffs that could further impact production costs

The tariffs have effectively negated some of the benefits craft breweries received from tax relief measures, creating a challenging economic environment for the industry.

Sources

Thank You For Reading

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Cheers.

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The Beer Thrillers on LinkTree can be found here: The Beer Thrillers LinkTree.

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 August 2024.) 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!

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.

Beer Review: The Soft Glow of Electric Sex (RAR Brewing)

BKline — Thu, 24 Dec 2020 23:17:41 +0000

It is Christmas Eve and there is no greater tradition on Christmas Eve than TBS airing A Christmas Story nonstop for the next 24 hours straight. TBS started this back in the fertile Nile Delta River Valley around 3996 B.C. and they have continued it every year since, all the way up to – and including – 2020. Not even a global pandemic could stop them from airing it for a continuous 6016 years. Thank God!

This one comes flying in right into the “IP” (Intellectual Property) theft debates I’ve been having with a lot of friends, from both in and out of the industry, on my personal Facebook page. Hershey’s recently sued a brewery over their marketing of Jolly Ranchers used in a beer they made. Their lawsuit was for 8,500$, which was the amount the brewery made on the beer made and sold. IP Theft has been a big issue I’ve been thinking about a lot lately with the craft beer industry, and is something I’d like to do an article on, and the Hershey’s lawsuit has given a lot of ammunition to the idea of the article (perfect timing in a way…. well… not perfect if you are the brewery in question I suppose). This is an interesting topic, and I think there’s a lot of merit to both sides. Look at this beer in question – the quote is a direct quote from the movie, and the can / bottle logo for the beer and packaging for it is spot on too, so do you consider that IP Theft? RAR Brewing is no stranger to using pop culture, nerd culture, mainstream, etc, for their beers. Look at their lineups of the “Out of Order” series. One of which I reviewed – Beer Review: Out of Order: Blue Milk (RAR Brewing). Or take a look at another one I reviewed from RAR Brewing, Jon Voight’s Car. This one has an exact replica of George Castanza on the can label, as well as having the car in question in the background. You can see that review here – Beer Review: Jon Voight’s Car (RAR Brewing).

Here is the can and bottle label for “The Soft Glow of Electric Sex”:

The Soft Glow of Electric Sex

It has the “fragile” box in the background, the lamp itself, and of course the iconic quote from the movie (which is the beer title). Where do you all stand on this – does this look like IP Theft to you? Is this fair ground? Is it just a cool and fun little cultural nod? A way to sell beers? I’d love to hear from all of you and your thoughts on this.

Like I said, I love diving into pop culture named and themed beers here for the blog. I have done – a TON – of them. (As with most of the pop culture beer reviews, I’ve included a section at the end of the review listing all of the other ones for you to easily find them, as well as tagged it so you can search through the blog itself easier for them). I’ve done beers from The Simpsons, Seinfeld, Star Wars, Back to the Future, Space Balls, etc. Josh has also done a few, with one recently being a play on the Teenage Mutant Ninja Turtles – Beer Review: Terpenes in Time (BAREBottle Brewing Co), and there is no shortage of beers out there to review. My most recent beer review (before this beer of course) was “This is the Whey” by Bolero Snort, a play on “This is the Way” which is a catchphrase from The Mandalorian. (Which, I also did a This is the Way beer review, by Broken Goblet). You can see those here: “Beer Review: This is the Whey (Bolero Snort)” and “Beer Review: This is the Way (Broken Goblet)“.

I have been wanting to get out a lot more articles than I have recently, and I apologize for that, life has taken a bit of a crazy turn in recent days. I figured with the local (Pennsylvania Mandates and Shutdown) that we had starting on December 12th and lasting until January 4th, I would be able to get out a lot of beer reviews, and other articles, and I wanted to do a lot of local ones. But sadly, my life has gone ‘full crazy’ right before the Christmas season. So I sadly haven’t gotten as much written as I have had wanted to do. I have gone through a bout of several health related things, some familial things, dealing with my own second unemployment of the year, and fighting with unemployment itself, as well as a host of other things. (Firstly, let me just say, I would never wish insomnia on the worst of my enemies, that is honestly one of the worst things in the world, and its not nearly as “productive” as you might think, writing with insomnia is no where near as easy as you would imagine.) I haven’t even gotten much reading done, something I figured with a snowstorm, snowy and cold weather, as well as lockdown, that I would, but sadly, I haven’t. I’ve found my hours becoming less and less productive and more and more just me staring at walls, more and more of me just trying to figure out whats going on, and working to get past a lot of blocks in the road. Hopefully this writing and getting this beer review out will help with that. Fingers crossed anyway. Tomorrow is Christmas afterall, and we all need to be in the festive spirit, even if I am quarantining and unable to see my family and being all alone for Christmas, I am keeping my head up high, and will be wishing all of you out there a Merry Christmas and a Happy Holidays.

Ok, so lets move on. Lets get past that crap, and get to why we’re here. A beer review about a beer named after a holiday staple and a holiday tradition. My daughters have grown up with A Christmas Story playing on loop in the background of our Christmas’s in the house starting on Christmas Eve when it first airs. Its how I’ve fallen asleep every Christmas since I was probably 16 or 18, whenever TBS first (legitimately) did start airing it.

There is so many classic scenes, many of which remind me of my own childhood. I think I learned most of the words I now use as an adult from listening to my dad assemble various Christmas gifts (one of which was a basketball hoop we got for Christmas one year, that the instructions said could be done with the simple tools around the house; apparently my dad didn’t have a dowel rod, and he made sure to write to Huffy and explain to them in three page – five hundred or so word essay – how a dowel rod was not a common thing around the household; …they promptly shipped him a dowel rod and a 5$ coupon). I think this is why A Christmas Story stands the test of time for so many people. Its an agglomeration of stories, of all the ways Christmas can get screwed up, that it fills us with our own memories, like nostalgia. We remember the Christmas’s where things went helter skelter. I recall the time my Grandparents had a Christmas tree with worms and we could hear them eating the tree. Or my parents “Christmas Bush”. Its much like Christmas Vacation and Home Alone. The mistakes, the missteps, the crazy, is why we love it; because it reminds us of the various Christmas’s where things went off the rails in our own lives. I have often thought about this with my own daughters. The trips we have taken where things didn’t go as planned, have become more memorable than the ones where they went perfectly planned. Like our trip this year to Monocacy where I got sick and we ended up making it a two day trip, rather than a four hour trip.

But lets move on, and get to the beer review shall we? Enough about A Christmas Story, and enough about my own crazy Christmas’s in my past. Lets review some beer!

HO HO HO

The Soft Glow of Electric Sex by RAR Brewing

Beer: The Soft Glow of Electric Sex
Brewery: RAR Brewing
Style: IPA – American
ABV: 7.6%
IBU: None
Untappd Description: Brewed with Mangos, Lactose, Citra, Amarillo, Ella, and Columbus. Tons of citrus and ripe mango juice flavors.

HO HO HO

Appearance is a bright glowing orange. This is probably much closer to a New England IPA, but when first created for Untappd they didn’t really have the New England designation for their IPAs on there, otherwise I’d imagine this would fit it. This is hazy, its orange juice in appearance, has a nice foam head, and well carbonated with nice lacing on the glass as well.

HO…. HO…. HO…..

Aroma is very heavy … very… very heavy mango. I love it. One of the few fruit flavors I really love, and its mango, and it works so well in IPAs (especially New England IPAs), that this is just wonderful. Theres a hint of peach to round it out, but its so much mango and so much upfront it just smells amazing.

Schwartz: Hey, smart ass. I asked my old man about sticking your tongue to a flagpole in the winter, and he says that it’ll freeze right to the pole, just like I told ya.

This is delicious. Maybe for some it might be too much mango, I don’t know, but I love it. Its so heavy mango flavored, but that fits most New England IPAs, and I love it. Very heavy citrus, some lactose, some creamy smoothness to it, a nice slick mouthfeel, but the hops shine through wonderfully here. Citra, Amarillo, Columbus, and Ella hops are used, and they are all lead towards that juicy mango flavor, with some peach, some stone fruit, some zest and citrus, but at the end of the day its all mango flavor all the time. I think the peach rounds it out a fair bit, but overall its very subtle, like a hidden note you can only find after unlocking all the mango flavor. Its a well rounded New England IPA too, it has a little hop bite to it, but nothing substantial, nothing too acidic, nothing cloying, nothing poor or off putting with this. No off flavors. No bad aftertaste, etc. This was the very first RAR Brewing beer I had, and I traded for it back in January 2018. When I first started to get into doing some trading for beers or buying and having people mule beers. I had gotten this and I had gotten the Jon Voight’s Car beer. Fell in love with both, and I’ve enjoyed RAR Brewing ever since pretty much, though I think their Out of Order series has been taken over and changed a bit too much over recent years, and I think they lean a bit too much on the gimmicks for that series (they just released a whole slew of Home Alone themed Out of Order beers, with the can art and the beers being slightly different in each, some representing Kevin, Marv, The Wet Bandits, Pesci, and the Shovel Slayer), but ultimately I think RAR Brewing still makes some fine good beers and they aren’t lacking in quality. The internet can be a bit harsher on them with respects to their Out of Order series, but thats also the internet for you, and who reads the internet anyway…….. (…oh….). But anyway, back to this beer, it is a bold, bright, beautiful, tasty Mango flavor bomb, and a wonderful New England IPA. Its juicy, its tasty, slight hop bitterness, but full on hop flavor, no off flavors, nothing cloying, nice mouth feel, no aftertaste, this is just a fine well made beer, with a cool logo and name, and definitely an eye catcher. And perfect for Christmas Eve and watching A Christmas Story on loop for 24 hours!

My Untappd Rating: ****.25
Global Untappd Rating: 4.01 (as of 12.24.20)

Thinking about how this was one of the first beers I traded for, makes me think back to the early days of trading for me, when I first started getting into that. When I was at Breski’s Beverages just last week preparing for the big snow blizzard we got, I saw Zombie Dust and Alpha Space Station from 3 Floyd’s on the shelf for 3.50$ each, and I remember trading and buying that from people in a Facebook beer group who muled it back. Crazy to seeing it being a “shelfie” now. Just like seeing JREAMS making it up into the Central PA midstate area and in places like The Fridge, Breski’s, etc for their crowler machines. Definitely not complaining about that! That’s for sure!

Well thank you all for reading this, and thanks for checking out another Pop Culture beer and “IP Theft” potential beer. I could almost make that its own category now on the blog. Like I said at the top, would love to hear everyone’s thoughts and opinions on that, and what they think is acceptable or not. Just in general, I always love to hear from you guys, so be sure to leave comments, questions, etc, either here on the blog, or on our social media platforms like Facebook or Twitter. We recently hit 1K followers and likes on Facebook which is a pretty big deal and I love how its bringing all kinds of people together.

Also, AJ Brechbiel is likely to be writing some new posts for the blog again, so be sure to check out his stuff when he releases it. I’m eagerly looking forward to that.

Another note I wanna make, there is another beer that was released with the same title as this. “The Soft Electric Glow of Sex” by Turning Point Beer, which is a brewery from Texas, and I have done a beer review from them before (from a beer trade); that beer was: Beer Review: $#!+ Ton (Turning Point Beer) as well as a beer review of one they were collaborated with – Beer Review: Virtually Inseparable (Celestial Beerworks and Turning Point Beer). But anyway, they did the exact same name as this beer, but made it a stout, and with a very similar logo too:

Turning Point Beer – The Electric Glow of Sex (photo courtesy of Untappd)

Their beer is a 15.6% Stout. I would love to get my hands on it and try it out for a future beer review as well (…well… and just because I like to drink stouts, and because the beer sounds good).

If I wanted to be really proper with this beer, I should have went out and gotten the “leg lamp” beer glass to drink it in:

The Leg Lamp Beer Glass

Maybe if I get that stout, I’ll make myself buy this glass to review it in. Who knows. I wanted to get a Festivus beer for yesterday (Dec. 23rd, 2020; Festivus), but sadly, wasn’t able to get one in time to do a review here on the blog for it. Next year!

That Star is Crooked….

Thank you everyone for reading. And I am hoping to get a lot more reviews and articles out from here to the end of the year. I feel like I have about a thousand beer reviews to do, and no time to do them, despite being stuck at home on quarantine. I have so many things I need to do from now until December 31st, 11:59:59, and not sure if I’ll get it all done. The pressure and the anxiety is mounting up, but the stuff’s not getting done. Fingers crossed it will. Thank you all for putting up with it, and for reading, and I hope you enjoyed the beer review! Cheers! As someone who just took a COVID test today, please stay safe out there, mask up, wash your hands, and take care of each other and your local breweries, they need it! Merry Christmas and Happy Holidays Everyone! Happy Festivus!

-B. Kline

FRA-GEE-LAY

It’s a Major Award!

The Soft Glow of Electric Sex

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The various pop culture / nerd culture beer reviews we’ve done here on The Beer Thrillers:

Star Wars:

Space Balls:

Beer Review: Moon of Vega (Equilibrium Brewery)

Game of Thrones:

Beer Review: Game of Thrones: My Watch Has Ended (Omnegang Brewery)

The Simpsons:

Back to the Future:

Beer Review: Back to Reality (Three 3s Brewing Co)

Scrooged:

Beer Review: Scrooge IPA (Iron Hill Brewing)

A Christmas Story:

Beer Review: The Soft Electric Glow of Sex (RAR Brewing)

Pro Wrestling:

Teenage Mutant Ninja Turtles:

Beer Review: Terpenes in Time (BAREBottle Brewing Co)

Other: