US President Donald Trump’s new 25 percent tariff on Canadian steel and aluminum is fermenting many stress on Dedicated Brewing of Bernabi.
“I’m worried,” co-owner Ben Koli told Global News.
“I am usually worried about the future of the economy, and I am worried about what this means for my alcohol.”
Problem? Most of the brew’s beer, between 60 and 65 percent, is packed in aluminum cans.
Another cost of huge price hike on each compartment is that Coli concerns that its industry cannot only take it.
“The craft boil industry has really been struggling for the last few years, we have increased costs and because of economic uncertainty we cannot really give those customers in terms of price hike,” he said.
“Before this cans can potentially be tariffed several times.”
Beer Canadian President CJ Haley explained that the North American economy is a factor.
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Canada, with great aromatic capacity, is the main global exporter of raw aluminum – but it does not have rolling mills, production features that produce thin, sheet aluminum used for cans.
“So in the case of drinks, beer cans often smell aluminum in Canada, exporting it to a US manufacturer in a virgin form, which turns it into an aluminum sheet,” Haley explained.
“Then that U.S. The cans are made in – and in the case of beer, all 473 ml cans, which we call T All Leboy, is the US. Made in – (or) can sheets are often exported to Canada and we will make 355 ml cans in Canada here. “
In both cases, he said that Canadian brews would hit the tariff, and if Canada replaces its own export tariff, they may face “double wami”.
It is a big deal for the domestic beer industry, which has been removed from the bottle in recent decades, most products are now packed in cans, he added. He added that most modern small and medium sized breweries do not even have a bottling line.
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“It would be catastrophic,” he said.
Both provincial and federal governments are pushing for relief.
Ken BT, executive director of the BC Craft Brewers Guild, said the BC has been working with the government for months in the hope of making significant cuts on the markup collected on the province beer.
“It’s eight years old, it’s now unclear of the market – we have since created 160 brewery in the province in more than 80 communities.”
“The cost in the beer industry has increased on average 32 percent, and we can no longer raise our prices.”
BT said BC breweries face four times the markup in Alberta, four times more than their counterparts. They are pushing to see a decrease between 23 and 75 percent.
At the national level, the Haley wants the federal government to see a two percent increase in the federal excise tax charged on beer.
It is an action that BT said is immediate for the BC industry, which employs about 4,500 people in the province.
“The cost of doing anything will continue to close the craft breweries in the province,” he said.
Trump’s steel and aluminum tariffs are set to apply to March 12.
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