Photo courtesy of Indeed Brewing Co.
Indeed Brewing Cans
Cans of craft beer and THC-infused drinks from Indeed Brewing Co.
President Trump recently announced that he is imposing 25 percent tariffs on aluminum and steel, as well as reciprocal tariffs on countries that impose tariffs on goods from the U.S. Craft breweries across the country rely on aluminum and steel to ensure fresh beer-drinking experiences for customers. Wisconsin is home to dozens of such breweries that find these tariffs a great cause of concern.
Beer is canned with aluminum, and steel is used to make equipment like kegs, tanks and brewhouses. Canada exports more aluminum and steel to the U.S. than any other country, followed closely by Mexico for steel. Canada and Mexico together account for nearly 40 percent of all U.S. steel imports.
Milwaukee’s Indeed Brewing Company Chief Business Officer Ryan Bandy weighs in, “Anytime there’s a massive disruption to the commodity market like this, it’s bound to have ripple effects. For smaller industries like craft beer, with our tight margins we’re going to feel it more.”
Per supply chain, tariffs on aluminum and steel will increase prices for U.S. manufacturing companies and therefore have an impact on the craft beer industry. Aluminum can prices will likely rise for wholesalers and retailers that get beer from these breweries, which may unfortunately spill out to consumers.
Bandy notes that the impact of the steel tariffs likely will not be felt as heavily right away since craft breweries are not booming quite like they were eight to 10 years ago. Most breweries are not buying as much new equipment, but lots of what they use is made of stainless steel, so the effects could still be felt.
“When something breaks and needs repair, higher steel costs could mean higher prices for those parts,” Bandy says. “The bigger concern for breweries is aluminum, which has a more direct impact on can prices.”
He continues, “Craft beer is already expensive! We believe beer should remain an affordable luxury, and our goal is to keep it that way for as long as possible by doing everything we can to absorb costs before passing them along.”
Bandy encourages beer lovers to keep buying their favorite craft beers and support their local craft breweries. There are over 30 of them in the Milwaukee area.
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