Restructured Aluminum Tariffs Continue to Pressure Craft Brewers

Yesterday, President Trump announced changes to the existing Section 232 tariff framework, including federal tariffs on steel, aluminum, and copper, which are likely to keep costs high for craft brewers, particularly when it comes to cans, kegs, and brewing equipment.

The updated policy clarifies goods covered under at the 50% tariff rate, including sheet aluminum (HTS 7606) and finished aluminum cans (7612), but moves some derivative products such as aluminum lids (8309.90) to a lower 25% rate.

Already strained packaging processes will continue to be impacted, as the updated schedule includes aluminum sheet (7606), foil (7607) and containers (7612). Despite finished aluminum lids falling to the lower 25% rate, higher input costs are likely to flow through from suppliers.

However, the policy also creates new uncertainty. The government can add additional derivative products to the tariff list at any time, including metal containers, even when they are filled with other goods. That means packaging commonly used in beer distribution could face new tariffs in the future.

There are some elements that could benefit beer importers. Beer (2203.00.00) is now exempt from the Section 232 tariffs, so importers will no longer pay tariffs on the value of aluminum in imported cans. Lower tariff rates also apply to products made entirely with U.S.-produced metals, which could incentivize new supply chain arrangements and partnerships.

Despite the policy being designed to strengthen domestic metal production, those benefits will take time to materialize. In the near term, the overall impact for craft brewers remains clear: continued high packaging costs for cans and possibly kegs, expensive equipment (tanks and brewhouse components), and volatility as the tariff scope can expand over time. While these updates aren't necessarily beneficial for small brewers, it's a positive sign that the administration continues to make updates in response to industry input.

The Brewers Association continues to engage with the administration and Congress to emphasize tariffs' effects on craft brewers and suggest policy updates.