Canadian breweries face $330 million cost increase

Canada's beer industry is facing a big challenge due to new tariffs on aluminum cans. If U.S. President Donald Trump keeps a 25-percent tariff on aluminum, Canadian breweries could see an annual cost increase of $330 million. Currently, aluminum cans are subject to double tariffs. The U.S. recently imposed a tariff on aluminum imports, and Canada is responding with its own 25-percent tariff on U.S. goods, including finished beer cans. This means cans often cross the border twice, raising costs for breweries and consumers. Beer Canada, which represents many Canadian brewers, warns that these tariffs will significantly hike production costs. Most packaged beer in Canada is sold in cans, and breweries rely on U.S. manufacturers for many aluminum products. This shift from glass to aluminum packaging has been notable in recent decades. Some craft brewers, like Steam Whistle Brewing, are already preparing for potential price increases. They have managed to stockpile some inventory but expect costs to rise. The brewery's president noted they cannot raise prices too much, especially as a premium brand. Brewers are calling for the elimination of interprovincial trade barriers and a review of taxes that impact craft breweries. They argue that tax rates differ unfairly across provinces, adding to their financial struggles. Other beverage producers, including cider and wine companies, are facing similar issues due to the tariffs. They rely on U.S.-made cans and bottles and are also looking for help from the government. Many businesses do not think consumers can afford any additional cost hikes, prompting calls for cost controls and support from officials.