Saskatchewan Breweries Bracing for Impacts of US Tariffs on Steel and Aluminum

Saskatchewan breweries are preparing for the potential impacts of US President Donald Trump’s 25% tariff on Canadian steel and aluminum, set to take effect on March 12.

“We’re preparing for another roller-coaster ride,” said Mark Heise, president and CEO of Rebellion Brewing in Regina. “Although Canada is a major producer of raw aluminum and has massive smelting capacity, the country does not have rolling mills to produce the thin sheets needed for cans. Many breweries source their cans from the US.”

Heise noted that some of their suppliers are stockpiling their Canadian inventories, and if tariffs come into effect, his company may have to look at alternative suppliers, but it’s not a prospect he’s looking forward to.

In the past, Heise said they actually started buying their aluminum cans directly from Mexico and China after there was pressure on the Mexican supplies.

Tariffs and the Brewing Industry

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“In the past, when there was previously aluminum tariffs, we actually did start buying our aluminum cans directly out of Mexico as well as eventually China after there was pressure on the Mexican supplies as well,” said Heise.

Hayden McPherson, marketing co-ordinator at District Brewing, said their brewery is already switching suppliers, finding better rates from Canadian suppliers.

“We’re finding a lot more of Canadian suppliers that are giving us a lot better rates, especially as things are coming in. And those are some of those transitions that we’re making right now,” he said.

Canadian-Crafted Solutions

Heise would like to see more Canadian-crafted solutions, including more domestic production of aluminum products.

“We should be turning our raw materials into value-added products here domestically, instead of shipping them elsewhere to have them turned into cans or whatever else,” he said, while acknowledging there is likely no “quick fix” governments can use to bring instant relief from tariffs.

Conclusion

The tariffs have raised concerns among Saskatchewan breweries, with some already taking steps to mitigate the impact. While the industry is bracing for the potential effects, it’s clear that the tariffs will have far-reaching consequences for the brewing industry in Canada.

FAQs

* What is the impact of US tariffs on Canadian steel and aluminum?
The tariffs will likely lead to increased costs for Canadian breweries, which could lead to higher prices for consumers.
* How will Canadian breweries respond to the tariffs?
Some breweries are already switching suppliers, while others are stockpiling their Canadian inventories.
* What is the long-term impact of the tariffs on the brewing industry?
The tariffs could lead to a shift in the industry, with some breweries looking to source their materials from other countries.