The Aluminum Tariff Question: What It Means for Our Beer Prices
At Shades Brewing, we know there’s nothing better than cracking open a fresh, cold beer. But aluminum tariffs are throwing some uncertainty into the mix. Will the cost of beer go up? Will the U.S. start producing more aluminum? Right now, it’s hard to say.
We reached out to our can supplier to get some answers. They told us our cans come from U.S. manufacturers, but they still don’t know what impact the tariffs will have. That leaves breweries like us in a tough spot as we wait to see how this plays out.
Why Are Aluminum Tariffs a Problem for Craft Breweries?
Like most small breweries, we rely on aluminum cans—but the U.S. simply doesn’t produce enough raw aluminum to meet demand.
While American manufacturers produce the actual cans, they still need imported aluminum to make them. Most of that comes from Canada, where hydroelectric power makes production more affordable and environmentally friendly. In the U.S., high energy costs make it much harder to smelt aluminum efficiently, which is why production has been declining for decades.
What Happened to U.S. Aluminum Production?
It wasn’t always this way. Back in 1980, the U.S. had 32 aluminum smelters operating across the country. Today, only five are still running. Why the drop?
High energy costs. Smelting aluminum takes a massive amount of electricity, and U.S. energy prices are much higher than in countries with cheaper, renewable sources.
Global competition. Canada, China, and the Middle East can produce aluminum at a lower cost, making it harder for U.S. smelters to stay competitive.
It’s expensive to restart. Building new smelters takes 5–10 years and costs billions of dollars—with no guarantee that the investment would pay off.
Even if new smelters were built, it wouldn’t bring can prices down anytime soon.
Why Small Breweries Get Hit Harder Than Big Beer
Aluminum costs don’t affect all breweries the same way.
Big beer companies like Wasatch Squatters (owned by Monster Energy) have the resources to buy cans in bulk directly from manufacturers. They can order entire shipping containers at a time, locking in better prices.
Independent breweries like us don’t have that kind of buying power. We rely on distributors and middlemen, which means when prices go up, we feel it first. That puts us at a disadvantage compared to the big players.
Will Beer Prices Go Up?
If tariffs increase, can costs will go up, and that could mean higher beer prices across the board.
At Shades Brewing, we’re doing everything we can to keep prices steady while maintaining the quality you expect from us. But we also want to be transparent about the challenges facing small, independent breweries.
How You Can Support Local Craft Beer
The best way to help local breweries weather the storm is to keep supporting them. Every pint you order, every six-pack you pick up, and every visit to our brewpub in Salt Lake City makes a difference.
We’ll keep you posted as we learn more. Until then, drink local and keep craft beer alive!