The 10% tariff on aluminum imported into the U.S. could add new pressures to some members of Michigan's already-struggling brewery sector. The industry has been beset by rising input costs and a slump in sales after the pandemic. The tariff was reinstated by the Trump administration last month.
Scott Graham is the President of the Michigan Brewer's Association. He said most breweries rely on local support and don’t distribute. Still, breweries that do have to eat another price rise.
“The breweries that do package quite a bit of beer, this is another cost input,” he said.
"Over the past few years, the prices, everything has gone up: malted barley, labor, insurance, packaging materials, energy, you name it. So, one more thing, even if it's small and incremental, is one more little incremental thing."
Several Canadian provinces have taken America alcohol off shelves. British Columbia, Ontario, Quebec, Manitoba and Alberta have all taken measures banning sales of American booze on Canadian shelves. In addition, future sales of U.S. brands are on hold.
“This is an enormous hit to the American producers, every year the LCBO (Liquor Control Board of Ontario) sells nearly $1 billion dollars’ worth of US wine, beer, seltzers and spirits,” said Ontario Premier Doug Ford.
Graham says that most smaller Michigan breweries rely on sales at their bars, so they will be mostly unhurt by a ban on American beer on Canadian shelves. Still, the local industry is facing uncertainty. “Sales have not rebounded since COVID,” he said.
“Sales are kind of are flat, if not declining a little, costs are going up, and this only adds to it potentially,” Graham said on the tariff.
Despite that and some recent closures, Graham believes the local brewery industry will eventually rebound with local support.
“I'm confident that people who have been drinking beer, are going to continue to drink beer, will be drinking beer in the future, and that they're going to continue to like, to connect with, and drink local beer,” he said “So, I'm not doom and gloom, but it's a little tough out there right now.”
