Trump Tariffs Could Raise Craft Beer Prices

Craft beer on grocery store shelves. File photo taken Feb. 13, 2025 by Sophie Bolich.

On Monday, the Trump administration announced a 25% tariff on imported steel and aluminum, effectively reinstating a similar tax first imposed in March 2018. This time, the tariffs will apply universally with no exemptions.

President Donald Trump has touted the move as a means of protecting domestic industries, however, its effects will likely be felt across various production and manufacturing sectors, including one that hits home for Milwaukee: craft beer.

Local breweries, specifically midsized operations that rely on distribution, are bracing for the impact, according to Ryan Bandy, chief business officer at Indeed Brewing Company. The full effect remains uncertain, he said, but the tariffs threaten to further strain an already struggling craft beer industry. Smaller breweries, in particular, are expected to bear the brunt of the fallout.

“A lot of midsize breweries are struggling right now, and one of the reasons is because it’s really hard to make money in small-scale manufacturing,” Bandy said. “Any margin away from that is really tough.”

Beer is increasingly being packaged in aluminum cans, with the Brewers Association reporting that more than 68% of all U.S. beer was packaged this way in 2023. Aluminum has several advantages over glass, though both are infinitely recyclable. Aluminum is lighter, which reduces shipping costs and lessens its environmental impact. Its opacity helps preserve the freshness of the beer, and the design eliminates the need for labels, streamlining the production process.

“Those are all reasons why craft breweries have been doing cans forever,” Bandy said. “You’re kind of back against the wall when there’s something like this, there’s not really much you can do.”

Bandy said it’s possible that some operations will return to glass bottles, given they still have the equipment. But for places like Indeed, which has always used cans, there’s no clear solution. Milwaukee breweries have pivoted toward canning in recent years, most notably with Lakefront Brewing making the switch from glass in late 2022.

“If we decided to no longer sell canned beer, we would close,” he said. “So then it’s either about how much you can actually absorb without being financially unstable and irresponsible, and how much you can pass on [to the consumer] without losing sales.” Indeed operates breweries in Milwaukee and Minneapolis.

Larger corporations, such as The Coca-Cola Company, are considering a return to plastic bottles in an effort to offset higher costs, according to The Washington Post. But that’s not feasible for beer producers, since their product is more susceptible to the loss of flavor and carbonation.

Others can stock up on year’s worth of product, an option that’s also unavailable to smaller producers with limited assets. And it’s not just cans. Breweries rely on steel and aluminum for kegs, tanks, brew houses and building materials.

Rising costs, while rarely seen on this level, aren’t completely unprecedented for the industry, said Bandy, who noted that prices fluctuate regularly due to changes in the market.

Indeed has been in communication with its suppliers, who are in turn talking with aluminum manufacturers. Bandy said nobody has any clear answers regarding when price hikes will hit — and how hard.

The Brewers Association, a national organization representing small and independent American craft brewers, outlined the prospective effects of the tariffs in a Feb. 10 post, noting that Canada reminds the top exporter of both aluminum and steel to the U.S. Unlike the 2018 tariffs, which were invoked during Trump’s first term and continued throughout the Biden administration, the newly announced tariffs don’t offer exemptions for trading partners like Canada, the European Union and South Korea.

“Even with Canada excluded from the 232 tariffs in 2018, there were across the board price increases on raw aluminum, impacting the price of aluminum cans. Including Canada in tariffs on aluminum will undoubtedly increase prices on aluminum products.”

The association affirmed that it “understands the importance and value of buying American and supporting local,” and pledged to “continue to advocate on the industry’s behalf and to educate Congress and the administration about the potential impact on America’s craft brewers.”

Bandy compared the current uncertainty to that of the COVID-19 pandemic, noting that, in tough times, the tight-knit craft brewing community is known to turn inward for support.

“We have that PTSD from Covid — where your cortisol levels were just through the roof for two years straight,” he said. “With craft beer, we like to do things together — we want to help each other out. So I’m feeling a little bit of that, where we’re texting  trying to pool our resources and learn as much as we can as quickly as possible.”

He said the hurdles are higher for small, local operations, which don’t have legal counsel or supply chain experts on staff. “We have to be scrappy and do it ourselves. That’s our industry, so it’s not surprising, but it’s hard when you’re working against macro-climates.”

Bandy stressed that consumers’ choices today could help ensure the future survival of local breweries.

“It’s a hard industry right now,” he said, referencing rising costs and other challenges in craft beer. “I just encourage everyone to buy the beer that they want to be around in two years.”