BUFFALO, N.Y. (WKBW) — The federal government plans to place a 25% tariff on all steel and aluminum coming into the United States.
The tariff is anticipated to impact many businesses, including the beer industry.
At Resurgence Brewing Company in Buffalo, their two biggest costs come from Canada: aluminum cans and barley.
"All of our cans either come from Canada, or the aluminum being used to make the cans comes from Canada," said Resurgence President Jeff Ware. "We're going to get hit with it one way or another."
Ware said Resurgence is expected to produce 1.5 million cans of beer this year, but costs have been rising over the past five years.
"In the beer industry, costs have gone up since COVID," said Ware. "We've been getting hit from all angles."
"Can companies aren't going to eat [the cost]," explained Ware. "They're going to pass it along."
Ware said he estimates that a 25% tariff on aluminum would increase costs by one to two cents per can.
"If we go to 50%, it's going to double those numbers," said Ware.
As for barley, Ware said that most of it comes from Canada.
According to the U.S. Department of Agriculture, last year, the U.S. harvested the lowest number of barley acres since 1876.
Ware called right now "a holding pattern" before he has to place another order for cans in three to five weeks.
"We're saying right now if we don't need to buy aluminum right now, let's just wait and see where it goes," said Ware. "We're just trying to do the best we can and keep pushing forward."
Ware said that while glass bottles are another alternative, cans provide the freshest quality for beer.
