Higher beer prices likely due to U.S.-Canada tariffs

Tariffs between the United States and Canada are raising concerns for the brewing industry. These tariffs, affecting aluminum and other goods, could lead to higher beer prices. Breweries have felt the impact of tariffs since 2018, when they first started. Dave Sutula, from Royal Docks Brewing Co., explains that the changes began years ago. Larger breweries shifted to packaging drinks in new types of cans, which led to a can shortage during the Covid pandemic. This shortage has made canning essential for survival for many local brewers. Matt Cole of Fat Head’s Brewery highlights the uncertainty caused by these tariffs. He says it is currently hard to predict how much they will affect costs. Recent statistics show that in 2023, the U.S. was Canada’s largest buyer of aluminum products, making the relationship between the two countries critical for the brewing sector. Tariffs could also affect prices for other brewing materials. The Ohio Craft Brewers Association and the national Brewers Association oppose these increased tariffs. They warn that tariffs can hurt both breweries and the economy. As aluminum can prices rise, breweries may have to find alternatives. However, options like glass bottles or plastic containers are not ideal. Cole mentions that a shift to plastic could happen if prices continue to climb, despite environmental concerns. The looming April 2 deadline for new tariffs adds pressure on the industry. Brewers are already facing challenges like soaring costs for paper and cardboard packaging. This could mean that customers might pay more for their favorite beers in the future. In the end, the fate of beer prices hinges on customer willingness to pay more. Sutula summarizes the situation, saying that it depends on how much consumers want to spend on expensive beer. Both he and Cole remain hopeful that they can navigate these challenges.