After significant back and forth that involved the threat of raising tariffs on aluminum imported to the U.S. from Canada to 50%, the Trump administration finalized across-the-board tariffs of 25% on aluminum and steel imports. No countries are exempt from the tariffs which went into effect March 12.

U.S. craft brewers could see the impacts from the U.S.-imposed tariffs and potential retaliatory tariffs.

• The U.S. imports more aluminum from Canada than from any other country. Even with Canada excluded from the 232 tariffs in 2018, there were price increases on raw aluminum, impacting the price of aluminum cans. With no countries exempted from the tariffs, prices for aluminum are likely to increase.

• Both producers and consumers of craft beer have been steadily choosing cans as a packaging method. In 2023 the use of aluminum cans as a packaging method grew almost 4% by volume compared to the year prior, reaching 68.4 share by volume for the year. In early 2025 sales data, aluminum cans accounted for approximately 75% of packaged craft beer’s volume and revenue.

• In a statement earlier this year, the Aluminum Association shared that the “U.S. industry sources around two-thirds of the primary aluminum it uses every year from Canada, since all U.S.-based smelters, even running at full capacity, cannot produce nearly enough metal to meet demand. And about 90% of U.S. scrap imports come from either Canada or Mexico. It would take billions of investment over decades to make the United States fully self-sufficient for its metal needs.”

• Like aluminum, Canada is the largest supplier of steel to the U.S., followed closely by Mexico. The two nations account for close to 40% of steel imported into the country. 25% tariffs could have a broad impact on aluminum prices across the world, and a direct impact on U.S. manufacturing companies that make a variety of steel products.

• U.S. small and independent brewers have already started to see retaliatory effects even without tariffs on beer. Brewers that export beer to Canada have had products pulled off the shelves and had shipments cancelled. Canada imports 37.5% of American craft beer exports, making it our industry’s largest export market. If other trade partners decide to retaliate, breweries could see similar impacts in markets like the European Union (EU) and China.

The EU was quick to respond, announcing that retaliatory tariffs are set to go into effect in phases. On April 1, they will reinstate tariffs on U.S. goods that were initially part of the response to tariffs in 2018 and 2020, this includes steel and aluminum products and items like bourbon and whiskey. The second phase of tariffs is expected to be implemented on April 13. Though beer is on the list of proposed items to tariff, it will not be finalized until they receive input from their stakeholder countries.

Though the impact of tariffs might not be immediate, the Brewers Association (BA) has been meeting with members of Congress and sharing with the administration the long-term negative effect that these tariffs could have on the more than 9,500 small and independent breweries across the country. BA members are encouraged to connect with BA staff and to share how their brewery is being affected by tariffs.

Concerned about tariffs and other federal legislative issues? Make your voice heard in Washington, D.C., by registering for and attending the Brewers Association Hill Climb July 15-16, 2025.