Some Minnesota breweries preparing for potential aluminum tariffs

Video Player is loading.
Current Time 0:00
Duration 0:00
Loaded: 0%
Stream Type LIVE
Remaining Time 0:00
 
1x

Breweries prepare for aluminum tariffs

President Donald Trump’s plan to impose tariffs on aluminum is already having an impact on Minnesota businesses that rely on those metals.

Minnesota’s Craft Brewers are among those already preparing for the ways the tariffs will affect their bottom line.

There are over 200 breweries across the state who are bracing for the impact on craft beer.

Indeed Brewing in Minneapolis said they’re playing defense because they have no idea what’s coming.

“Any tariff on aluminum is going to impact the industry,” Ryan Bandy, Indeed Brewing Company chief business officer, said.

The craft beer industry is drafting a plan bracing for 25% tariffs on steel and aluminum imports

President Trump signed an executive order making it a reality starting in mid-March. 

RELATED: How Trump tariffs could impact Minnesota farmers, lead to higher energy, construction prices

“You kind of have to be running multiple scenarios and variables in your head about how it could impact you and then what would you do?” Bandy said.

Bandy has already seen the prices from their American suppliers jump because of high demand.

He thinks businesses are already pivoting to ditch international suppliers before the tax increase kicks in.

“I think a lot of these business owners and brewers are incredibly frustrated,” Bob Galligan, Minnesota Craft Brewers Guild director of government and industry relations, said. “There is so much chaos out there and so much uncertainty.”

Galligan walks industry leaders through uncertain times with the Minnesota Craft Brewers Guild and he’s done it before.

Back in 2018, under the Trump administration, breweries across the state had to bear a tariff on aluminum.

“Canada was actually exempted from those tariffs, yet we still saw the actual overall price of aluminum basically skyrocket over the next couple of years,” Galligan said.

With the falling demand for beer and a tight profit margin, industry leaders predict customers could pay the price.

“Like trying to figure out, are we going to have to raise prices? That’s the last thing that we want to do,” Bandy said. You’re just kind of used to having to roll with it, problem solve, figure your way out and have a beer at the end of the day and come back and do it again tomorrow.”

Industry leaders said bottles used to be very popular for craft beer, but that changed about ten years ago so there’s not really an alternative.

This tariff is set to go into effect on March 12.