Craft Brewers Hit by Tariffs, Rising Costs

The impending 25% tariffs on aluminum and steel, announced by President Donald Trump, are causing concern across the U.S. craft brewing industry, with brewers in Maine, New Mexico, Illinois, and Minnesota particularly affected. Many breweries, such as La Cumbre Brewing in Albuquerque and Spiteful Brewing in Chicago, rely heavily on aluminum cans for packaging, and the increased costs are expected to significantly impact their operations. While some breweries, like those in Manitoba and Minnesota, are attempting to absorb these costs to avoid raising prices, others may have no choice but to increase prices, risking reduced consumer demand. The tariffs, which take effect in March, exacerbate existing challenges within the craft beer market, including narrow profit margins and declining interest in craft beers. Breweries are attempting to innovate and improve efficiencies to mitigate the financial impact, but uncertainty remains high regarding the future economic landscape. The situation highlights broader economic implications, affecting not just brewers but other industries reliant on aluminum imports, such as construction and automobile manufacturing.