02/11/2025
What will the 25% aluminum tariffs mean for beer prices? The answer right now is "We don’t know."
As of this afternoon, we reached out to our can supplier. Our cans are sourced from the USA but, but our supplies don’t yet know what the impact of the tariffs will be.
Why are we worried?
Tariffs are paid by buyers. The U.S. doesn’t produce enough aluminum to meet demand so we import most of the aluminum used in the US. While the US has some manufacturing capacity to make more cans, we lack the ability to produce the aluminum needed. Smelting aluminum requires massive amounts of energy and produces significant carbon emissions. The U.S. struggles to compete with countries like Canada, where hydroelectric power makes aluminum production cheaper and cleaner.
At one point, the U.S. had a strong aluminum industry. In 1980, there were 32 primary smelters operating in the country. Today, there are only five. High energy costs and competition from global producers forced most of them to close. Bringing aluminum smelting back to the U.S. is not a quick fix. New smelters take 5–10 years to build and they cost $2–$5 billion and due to cost of production in the USA, there’s no guarantee they’d be competitive enough to find a market. This means even if the U.S. decides to boost domestic aluminum production, it won’t come on line anytime soon.
So will prices go up? Maybe maybe not. It depends on supply, demand, and the state of the economy. If a lot of people lose their jobs, or inflation erodes buying power so much it impacts demand, maybe not.
One thing we know, small business is at risk. If tariffs increase, aluminum costs will rise, the impact will not be felt equally across the industry. Large corporate-backed breweries like Wasatch Squatters (owned by Monster Energy) have the volume and resources to purchase directly from manufacturers. These suppliers often require bulk purchases of entire shipping containers of a single brand of cans—a level of purchasing power that’s out of reach for most small, independent breweries. Smaller breweries like ours don’t have the same buying power, or access to contracts like the big players.
What Does This Mean for Beer Prices? We’ll likely see higher aluminum costs, which could drive up beer prices. Big brewers might absorb some of the costs, but for independent breweries like ours, every added expense impacts our bottom line.
For now, we’re watching the situation closely. As always, we’ll do everything we can to keep our beer affordable and flowing, but we want our customers to understand the challenges behind the price of every can.
The US recycles 40-50% of aluminum used with aluminum cans reaching as high as 50-60%. Recycling alone is not the answer, but it is something we can all be better at starting right now.
Stay tuned—we’ll keep you updated as we learn more.