Brewers Association Offers Advice on Additional Tariff Measures
Yesterday, the Brewers Association (BA) advised its members of a recent trade development impacting the brewing industry. The U.S. Department of Commerce recently added can ends and lids to the list of aluminum derivatives impacted by the steel and aluminum Section 232 tariffs. Aluminum can ends and lids are the metal tops and bottoms of aluminum beer cans, and any other aluminum beverage and food cans. Previously, there were exemptions, or a way to request them, but now can ends and lids are included in the Section 232 tariffs.
In its advisory, the Brewers Association pointed out that aluminum is considered the single largest input cost for packaging operations at most breweries. It follows that any increase in the cost of packaging will find its way to consumers. Today’s small and independent breweries operate on slim margins in an increasingly challenging market, so it is unrealistic to expect breweries to absorb cost increases on their own.
“Section 232 measures were originally put in place in 2018 to address national security concerns tied to aluminum and steel imports,” said the BA’s advisory statement. “These tariffs and quota-based restrictions have since affected a wide range of products used by brewers, including beverage cans, can sheet, and now, specifically, the ends and lids critical to beer packaging.”
What this means for brewers:
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- Importers of can ends and lids may now be subject to tariffs or licensing requirements under Section 232.
- This change could contribute to higher packaging costs and added supply chain complexity.
- Brewers should review procurement strategies and engage with suppliers to understand potential impacts on cost and availability.
The Brewers Association says that it is continuing to monitor developments around aluminum trade policy and advocate for the needs of small and independent brewers. It promises to share more updates as details become available, including any changes in tariff rates, licensing procedures, or country exemptions.
The Brewers Association advises brewers to take these next steps:
- Stay informed: The BA will share timely updates through our newsletters and website.
- Share your perspective: If your brewery is directly impacted, we encourage you to reach out so we can ensure your voice is represented in ongoing discussions with policymakers.
The Brewers Association says it will continue to advocate for fair and transparent trade policies that minimize unnecessary burdens on small and independent breweries.
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