Tariffs on Aluminum Affect Both Canadian and American Beer Markets

Tariffs on aluminum are affecting business on both sides of the Canada-U.S. border. Over half of the aluminum imported into the U.S. comes from Canada. Canada sells aluminum to the U.S. and many Canadian companies and consumers buy products manufactured in the U.S. that contain Canadian aluminum.

For Canadian breweries that sell beverages in cans, the increased cost will either be absorbed by the brewery or passed on to the consumer. In their op-ed on aluminum tariffs, Bromlyn Bethune, president of Steam Whistle Brewing in Toronto, says that 80% of the brewery’s beer sales come from selling their brews in 473-milliletre cans that are manufactured stateside. Rather than increasing the retail price, the brewery is reducing capital spending and seeking new relationships with retail buyers in other provinces. An additional challenge is that Canada’s retaliatory tariffs are affecting cross-border sales of all Canadian beers.

The BC Craft Brewers Guild is advocating for brewers – lobbying for tax relief to offset the increased aluminum prices. In the past year, the Guild has worked collaboratively with the BC government on markup tax reforms that would benefit the industry. To date, nothing has changed and two more breweries have recently closed and been put up for sale, for a total of 17 in the past year.

In the U.S, retaliatory tariffs on Canadian aluminum are increasing the cost of American can manufacturing, which will cause aluminium can producer and brewery profit margins to shrink. Many Canadians are refusing to buy U.S. products and the provinces have stopped importing and are no longer selling, U.S. liquor. These factors are pushing an already struggling craft beer industry to the breaking point. In 2024, craft brewers saw a third consecutive year of negative growth because of market saturation and changes in drinking habits among youth (Craft Brewing Business).

Aluminum Tariffs Hurting Your Brewery? Talk to a Liquor Consultant

Thrive Liquor & Cannabis Advisors can’t make tariffs on aluminum disappear; however, we can help you find ways to cut costs and operate more efficiently in these tough times.