The brewing industry is bracing [1] for significant cost increases following the implementation of new steel tariffs by the U.S. government. The 25% tariffs, which apply to imported steel and aluminum, are expected to impact breweries of all sizes, particularly small and independent craft brewers.
Steel are essential material in the brewing process. Breweries rely on steel for equipment such as fermentation tanks, kegs, and brewhouses. With the new tariffs in place, the cost of these materials is projected to rise, putting additional financial strain on brewers already navigating tight profit margins.
Craft breweries, which account for a significant portion of the U.S. beer market, are likely to feel the effects most acutely. Many of these businesses operate on limited budgets and may struggle to absorb the increased costs. The price hikes could lead to higher beer prices for consumers or force breweries to delay planned expansions and equipment upgrades.
The tariffs also raise concerns about potential retaliatory trade measures from key trading partners, such as Canada and Mexico, which supply a substantial portion of the U.S.’s steel imports. In previous trade disputes, Canadian provinces have restricted imports of U.S. alcohol products, a move that could further impact American breweries reliant on export markets.
Industry experts emphasize the need for breweries to explore cost-saving measures and alternative sourcing strategies to mitigate the impact of the tariffs. However, the brewing community remains concerned about the long-term implications for growth and competitiveness in an already challenging market.
Sources:
[1] How new aluminum and steel tariffs affect the brewing industry https://www.kptv.com/2025/03/27/how-new-aluminum-steel-tariffs-affect-brewing-industry/