How New Tariffs on Aluminum and Steel Could Impact Breweries and Packaging Costs

The recent announcement of new tariffs on aluminum and steel imports is raising concerns across multiple industries, including craft brewing. Set to take effect on March 12, 2025, these tariffs will impose a 25% duty on imported steel and aluminum, potentially driving up costs for breweries that rely on aluminum cans and steel equipment. Unlike previous tariffs that granted exemptions to key trading partners such as Canada and Mexico, these new tariffs will apply to all nations.

Aluminum and steel are essential materials in the brewing industry. The majority of craft beer today is packaged in aluminum cans, and breweries rely on steel for kegs, tanks, brewhouses, and other critical equipment.

The U.S. imports more aluminum from Canada than any other country. Even when Canada was exempt from the 2018 tariffs, the price of raw aluminum still increased. Now, with Canada included in these tariffs, breweries can expect even steeper price hikes on aluminum cans. Recent data shows that in early 2025, aluminum cans accounted for approximately 75% of packaged craft beer’s volume and revenue, making this a crucial issue for brewers trying to manage costs.
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Additionally, steel prices are likely to rise, impacting the cost of brewery expansions, tank replacements, and keg purchases. With Canada and Mexico accounting for nearly 40% of U.S. steel imports, the brewing industry is bracing for potential disruptions.

If the U.S. moves forward with these tariffs, there is also the risk of retaliatory trade measures. Canada imports 37.5% of American craft beer exports, making it the largest international market for U.S. craft breweries. In past tariff disputes, some Canadian provinces canceled shipments of U.S. alcohol products or encouraged consumers to buy locally made beer. This could further impact small and independent breweries that rely on exports.

As breweries navigate potential cost increases, finding ways to save without compromising quality is more important than ever. Inovar understands these challenges and is committed to offering premium beer labels at honest prices. We provide durable, high-quality labels designed to withstand cold storage, moisture, and handling, ensuring your brand stays strong, even in uncertain economic conditions.

Rising material costs are unavoidable, but overspending on your labels doesn’t have to be. Inovar is here to help you maintain your brand identity with high-performance labels that fit your budget.

If you’re looking for cost-effective, high-quality labels for your brewery, we’d love to chat. Contact Inovar today and let’s find a solution that works for your brand.