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After extensive negotiations, which included the threat of raising tariffs on aluminum imports from Canada to 50%, the Trump administration finalized a set of 25% tariffs on all aluminum and steel imports. These tariffs, which took effect on March 12, apply to all countries, with no exemptions.

U.S. craft brewers could be significantly affected by these tariffs and any potential retaliatory measures.

• The U.S. imports more aluminum from Canada than any other country. Even though Canada was excluded from the 232 tariffs in 2018, the price of raw aluminum still rose, impacting the cost of aluminum cans. With no countries exempt from these new tariffs, aluminum prices are expected to increase further.
• Both craft beer producers and consumers have increasingly chosen cans as their preferred packaging. In 2023, the use of aluminum cans grew nearly 4% by volume, reaching a 68.4% share. By early 2025, aluminum cans represented approximately 75% of packaged craft beer’s volume and revenue.
• According to a statement earlier this year from the Aluminum Association, the U.S. sources around two-thirds of its primary aluminum from Canada. U.S. smelters, even when operating at full capacity, cannot produce enough aluminum to meet demand. Additionally, about 90% of U.S. scrap aluminum comes from Canada or Mexico. Achieving full self-sufficiency in aluminum production would require billions in investment over decades.
• Canada is also the largest steel supplier to the U.S., followed closely by Mexico. Together, these two countries account for nearly 40% of U.S. steel imports. The 25% tariffs on steel could have a global impact on aluminum prices and directly affect U.S. manufacturers of steel products.
• U.S. small and independent brewers have already begun to feel the effects of retaliatory actions, even without tariffs specifically on beer. Brewers who export beer to Canada have had products removed from shelves and shipments canceled. Canada imports 37.5% of U.S. craft beer exports, making it the largest market for American craft beer. If other countries retaliate, U.S. breweries could face similar disruptions in markets like the European Union (EU) and China.

The EU has already announced plans for retaliatory tariffs, which will be phased in starting April 1. These will target U.S. goods that were previously part of the response to 2018 and 2020 tariffs, including steel, aluminum, bourbon, and whiskey. The second phase of tariffs is expected to take effect on April 13. While beer is on the proposed list for tariffs, the final decision will depend on consultations with EU stakeholders.

Though the impact of these tariffs may not be immediate, the Brewers Association (BA) has been actively engaging with Congress and the administration to highlight the long-term negative effects these tariffs could have on the over 9,500 small and independent breweries across the country.

Attribution: Article Retrieved from Brewers Association, written By Katie Marisic .

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