The Bitter Taste of Tariffs: What's Brewing for Your Favorite Craft Beer?

Throughout this blog, you’ll notice numbers in the text that correspond to detailed sources and citations listed at the end, ensuring you have accurate and reliable information on the impact of tariffs on craft beer.

So, you like kicking back with a cold one from your local craft brewery, huh? Well, grab another because things are about to get a little… bubbly. Not in a good way, unfortunately. Uncle Sam has decided to shake things up with some new tariffs, and guess who's feeling the pinch? Our beloved small craft breweries. Let's dive into this frothy mess and see what it all means for your next pint.

The Tariff Tango: A Quick Step-by-Step

Think of tariffs like extra charges on stuff coming into the good ol' US of A. Now, there's a whole bunch of new ones, but a few are really going to make our brewers sweat. We're talking about a universal 10% tariff on almost everything (1), plus some extra hefty "reciprocal" tariffs on countries we have a trade beef with.(1) But wait, there's more! We've also slapped a 25% tariff on all imported steel and aluminum (1), and since Canada and Mexico are big players in our beer world, the 25% tariff on most of their imports is also causing a stir.(1) Even China, while not a huge source of brewing ingredients, is facing increased tariffs that could affect equipment costs.(1) It's like a tariff party, and nobody brought the good chips.

About 75% of craft beer is now sold in aluminum cans, and the new 25% tariff on imported aluminum and empty cans could add an estimated $60 million to the cost for small brewers nationwide.

The Costly Ingredients: From Can to Keg

What does this tariff fiesta mean for your beer? Well, imagine trying to bake a cake when the price of flour, sugar, and even the baking pan suddenly jumps. That's kind of what's happening to our brewers.

First up, the humble aluminum can. Craft beer and cans go together like hops and barley, with about 75% of craft beer now sold in them.(30) That shiny 25% tariff on imported aluminum (1) and imported empty cans (23) is a real gut punch. Even if the cans are made in the US, the aluminum itself might come from Canada, making it pricier.(39) Some folks are even panic-buying cans, making it even harder for the little guys to get their hands on them.(28) The Brewers Association reckons this could add a whopping $60 million to the cost of small brewers nationwide.(40) Cheers to that… not!

Then there's the barley. Our neighbors up north in Canada are big suppliers of this crucial ingredient, especially the good stuff some brewers swear by.(41) That 25% tariff on most Canadian imports 1 means the cost of that lovely malt is likely heading north too.(32)

And let's not forget the shiny toys! Brewing equipment, like those big steel fermenting tanks and kegs, often contain steel and aluminum.(12) With tariffs on both, setting up a new brewery or expanding an existing one just got a whole lot more expensive.(29)

Will My Pint Cost More? Spoiler Alert: Probably.

So, what happens when the cost of everything goes up? Breweries have a tough choice. They can try to eat the extra cost, which squeezes their already thin profit margins.(31) Or, they might have to pass some of that cost onto you, the thirsty consumer.(28) Some brewers are already bracing for having to raise prices by at least a dollar per six-pack.(29) Nobody wants to pay more for their favorite brew, but that might just be the bitter reality we face.

Not All Beers Are Created Equal (Regionally Speaking)

The impact of these tariffs won't be the same everywhere. Breweries close to the Canadian border, for example, might feel the pinch on barley more acutely.(32) Places like Pennsylvania, which rely on both Canadian malt and imported aluminum, could be particularly vulnerable.(32) And don't forget, Canada is a big fan of our craft beer, buying almost 38% of our exports.19 If they get grumpy about our tariffs, they might retaliate, hitting our exporting breweries where it hurts.(15)

“When tariffs hit craft beer, the cost isn’t just in dollars – it’s in community, creativity, and the spirit of local brewing.”

Brewing Up Solutions: How Can Breweries Cope?

Our crafty brewers aren't just going to roll over and let the tariffs win. They're looking at ways to fight back. Some might try to source more ingredients from within the US (43), though that might be easier said than done for certain types of barley or hops.(40) Others might focus on becoming super-efficient in their operations.(27) And, as we discussed, some might have to carefully adjust their prices.(28) You might even see a shift towards more bottles instead of cans 16, though that comes with its own set of challenges.(33) Some breweries might even try to renegotiate with their suppliers.(35) It's going to be a tough balancing act.

The Big Beer Battle: Who Comes Out on Top?

These tariffs could also shake up the beer market. Imported beers, especially those in cans, might become more expensive, giving a slight edge to domestic brewers.(23) Bigger breweries with more resources might be able to weather the storm better than the smaller, independent ones.(29) So, while your local brewery might be feeling the squeeze, those mega-brewers might just keep chugging along.

“A pint may cost more, but supporting your local brewery means investing in flavor, craftsmanship, and a resilient beer community.”

The Bottom Line: Support Your Local Pint!

The next six months are going to be interesting for the craft brewing scene. These tariffs are throwing a wrench in the works, leading to higher costs and potential price hikes. While our brewers are a resilient bunch, they could really use our support. So, next time you're reaching for a beer, consider grabbing one from your local craft brewery. It might cost a little more, but you'll be helping them navigate these turbulent times and ensuring that the delicious, innovative brews keep flowing. Cheers to that!

Works cited

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3. Where We Stand: The Fiscal, Economic, and Distributional Effects of All U.S. Tariffs Enacted in 2025 Through April 2 | The Budget Lab at Yale, accessed April 6, 2025, https://budgetlab.yale.edu/research/where-we-stand-fiscal-economic-and-distributional-effects-all-us-tariffs-enacted-2025-through-april

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32. Trouble Brewing: How Trump's Liberation Day Tariffs Are Impacting Craft Beer, accessed April 6, 2025, https://thebeerthrillers.com/2025/04/02/trouble-brewing-how-trumps-liberation-day-tariffs-are-impacting-craft-beer/

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39. Philadelphia brewers say President Trump's 25% aluminum tariffs could force them to raise beer prices - CBS News, accessed April 6, 2025, https://www.cbsnews.com/philadelphia/news/trump-aluminum-tariffs-beer-prices/

40. How Tariffs on Everything From Aluminum to Barley and Malt Will Impact Beer Pricing, accessed April 6, 2025, https://www.foodandwine.com/aluminum-tariffs-impact-beer-pricing-11698307

41. Raising a cold one? Tariffs are raising the price of beer, impacting Saint Arnold Brewing Company - Click2Houston, accessed April 6, 2025, https://www.click2houston.com/news/local/2025/03/17/raising-a-cold-one-tariffs-are-raising-the-price-of-beer-impacting-saint-arnold-brewing-company/

42. Bay Area brewer says tariffs already impacting beer business in multiple ways - CBS News, accessed April 6, 2025, https://www.cbsnews.com/sanfrancisco/news/trump-tarrifs-alameda-brewing-impacted-multiple-ways-cans-tanks-barley/

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The Defining Trends Impacting the Craft Brewery Industry in 2025

The craft brewery industry in 2025 stands at a crossroads, much like a slightly inebriated beer enthusiast trying to decide between a double dry-hopped hazy IPA and a barrel-aged stout. Consumer preferences are shifting, technology is evolving, and external pressures—like climate change, inflation, and the never-ending debate about whether pumpkin beer should exist—are making breweries rethink their game plans.

“From solar-powered brewing to mushroom-based packaging, the craft beer industry proves that sustainability pairs perfectly with a cold pint and a bold story.”

Sustainability: More Than Just a Buzzword (or a Buzzkill)

Sustainability has gone from a marketing flex to a full-fledged requirement. Breweries are adopting closed-loop water systems, with pioneers like Sierra Nevada Brewing Co. recycling up to 99% of their process water—because nothing says “eco-conscious” like turning yesterday’s IPA into today’s pilsner. Renewable energy is also on the rise, with solar-powered brewhouses and biogas recovery from spent grain reducing carbon footprints faster than a beer keg at a tailgate.

Meanwhile, packaging innovations are turning heads. Sixty-two percent of craft brewers are switching to biodegradable six-pack holders, and Auburn University is working on mycelium-based packaging—because apparently, mushrooms can do everything, including replacing plastic. If trends continue, soon we’ll be drinking beer out of cans made from repurposed hop vines and dreams of sustainability.

The Non-Alcoholic Revolution: Now with Actual Flavor

Once the sad, watery afterthought of the beer world, non-alcoholic (NA) brews have finally come into their own. Thanks to technological breakthroughs like advanced membrane filtration, today’s NA beers retain 97% of their original flavor. This means that instead of tasting like someone whispered "beer" into a glass of carbonated water, these new brews actually resemble the real thing.

In 2025, NA beers account for 22% of craft sales, with a growing audience of health-conscious drinkers. Limited-edition NA sours are hitting shelves, proving that even your most snobbish beer geek friend can no longer dismiss non-alcoholic brews with an eye roll and a sigh.

“In 2025, craft breweries aren’t just brewing beer—they’re crafting stories, saving the planet, and delivering IPAs by drone. The future is hoppy and high-tech.”

Storytelling and Radical Transparency: Because Beer Lovers Love Drama

Breweries are no longer just selling beer; they’re selling stories. Whether it’s live-streaming their brewing process or publishing real-time profit margins per barrel (looking at you, Miluna Brewing), transparency has become a marketing powerhouse. Some brands even turn crises into opportunities—like Keep Together Brewing, which transformed a lactobacillus contamination into the viral "Save Our Sour" campaign, doubling sales upon relaunch.

If this trend continues, expect future labels to include not just ABV and IBU counts, but also hop farmer testimonials, behind-the-scenes yeast interviews, and perhaps even the brewer’s astrological sign (because Mercury being in retrograde might explain that off-batch).

The RTD Threat: When Cocktails Come for Beer’s Throne

Craft beer’s dominance is being challenged by the rise of ready-to-drink (RTD) cocktails. With younger drinkers gravitating toward convenience, breweries are getting creative, launching hybrid beverages like stout concentrates mixed with nitro cold brew. The result? A Frankenstein-esque fusion of caffeine and booze that’s basically a legal performance-enhancing drug for Monday morning meetings.

Meanwhile, retailers are reducing SKU counts by 22%, meaning breweries must fight for shelf space. Some are opting for direct-to-consumer models, offering neighborhood beer subscriptions and drone deliveries—because nothing says "the future" like having a freshly canned IPA land on your doorstep via flying robot.

The Future: A Blend of Tech and Tradition

The breweries that will thrive in 2025 are the ones that balance cutting-edge technology with good old-fashioned craftsmanship. AI is optimizing production, VR brewery tours are boosting merchandise sales, and blockchain-enabled supply chains are ensuring that your favorite hop varieties don’t mysteriously vanish.

But at the end of the day, craft beer remains an industry fueled by passion, creativity, and a willingness to experiment. Whether it’s a kombucha-lager hybrid or an oat milk stout, one thing’s for sure—beer will keep evolving, and we’ll keep drinking it (responsibly, of course).

Cheers to the future!

Brewing in a Storm: The Craft Beer Industry’s Challenges in 2024

The craft beer industry has long been a bastion of creativity, community, and camaraderie. Yet, in 2024, it found itself at a crossroads, navigating significant challenges that threaten its growth and sustainability. Here, we dive into the hurdles craft breweries are facing and why they may need to drink deeply from the well of innovation to survive.

“With over 9,500 breweries operating across the U.S., the craft beer market is officially crowded. It’s a survival-of-the-fizziest scenario, where only the most distinctive or deeply rooted brands can capture consumer loyalty.”

1. Declining Production Volumes

Craft beer’s production has dipped by about 2% in 2024 compared to the previous year, part of a broader trend that saw the overall beer market shrink by 5%. While 2% might sound like a modest drop, in an industry already operating on razor-thin margins, it’s enough to make even the steadiest brewmasters sweat. If this trend continues, the words “beer bubble” might take on a whole new (and less fizzy) meaning.

2. The RTD Revolution

Ready-to-drink (RTD) cocktails are shaking things up—and not in a friendly bar mixologist way. These convenient, flavor-packed beverages have become a favorite among Gen Z consumers, who seem to have decided that opening a can of pre-mixed margarita is the pinnacle of modern living. For craft breweries, competing against RTDs is like trying to outshine a disco ball at a party: technically possible, but very, very hard.

3. Economic Pressures and Inflation

Inflation continues to be a thorn in the industry’s side. From rising operational costs to the financial pinch consumers are feeling, economic pressures are brewing trouble. While the cost of certain raw materials has stabilized, breweries are still dealing with an unpredictable economic environment. This volatility forces consumers to make tough choices: Do they splurge on a $10 IPA, or do they grab a six-pack of budget beer for the same price?

4. Market Saturation

With over 9,500 breweries operating across the U.S., the craft beer market is officially crowded. The sheer volume of competitors—from scrappy startups to established juggernauts—makes it increasingly difficult for small breweries to stand out. It’s a survival-of-the-fizziest scenario, where only the most distinctive or deeply rooted brands can capture consumer loyalty.

5. Lingering Supply Chain Woes

While supply chain disruptions have eased compared to previous years, they remain a formidable challenge. From sourcing hops to securing packaging, the road from brewery to beer glass can still be a bumpy one. Breweries must juggle these logistical headaches while ensuring their product reaches consumers fresh and on time.

6. Evolving Consumer Tastes

Consumer preferences are always in flux, and in 2024, the pendulum has swung toward simpler beer styles and lower-alcohol options. While heavily fruited sours and experimental brews once ruled the day, today’s drinkers are leaning into classics like lagers and IPAs. For breweries that built their brand on niche offerings, this shift may feel like a betrayal by their once-adventurous fans.

“Competing against RTDs is like trying to outshine a disco ball at a party: technically possible, but very, very hard.”

A Toast to Adaptation

Despite these challenges, the craft beer industry has proven time and again that it’s capable of resilience and reinvention. To weather this storm, breweries must focus on:

• Innovation: Introducing new flavors, formats, and experiences to keep consumers engaged.

• Efficiency: Streamlining operations to manage costs effectively.

• Local Connections: Strengthening ties with their communities to build loyal customer bases.

The future of craft beer might not be as hazy as a New England IPA, but one thing is clear: breweries must adapt to thrive in an ever-changing market. Here’s to hoping they rise to the challenge—because the world is a much better place with great craft beer in it.