Tariffs on aluminum and steel likely to impact beer industry

NASHVILLE, Tenn. (WSMV) - The latest round of tariffs has come down from the White House, this time targeting steel and aluminum imports at a 25% rate.

The tariffs, as enacted by President Donald Trump, are intended to protect American industries from unfair foreign competition.

What this could do, experts predict, is lead to a price increase on canned goods especially, which takes aim at multiple industries including beer.

“We try to absorb as much as we can,” TailGate Brewery Director of Brewing Ryan Bruchey said. “There’s only so much that the market’s going to pay for a six-pack of beer, no matter how great it is.”

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At TailGate, leaders say a majority of the things they sell are made in-house. One of the only materials they have to outsource is cans.

“There’s really two main manufacturers for cans,” Bruchey explained. “There’s not a lot of options out there, and everything that goes into cans feels the impact from any of the raw materials going up in price.”

Bruchey says they’ve had a dry run of raised costs during the pandemic due to parts shortages, and unlike the bigger brands on most store shelves, they do what they can to absorb the costs.

“While they could absorb some of this cost, they generally don’t,” Bruchey said. “It’s kind of all usually passed along to the consumer.”

In Tennessee, the average cost of a case of beer was around $24 in 2024. If each aluminum can were subjected to the 25% tariff, the increase in price would be determined by the weight of each can and the cost of aluminum per pound. The minimal impact on the price of a can of beer would have more of an effect on local brewers, who operate on slimmer margins.

This could, Bruchey says, lead them towards other branches in the alcohol industry to expand their model.

“If margins are already razor thin for beer, where else can we continue to grow our business,” Bruchey asked. “The most important message we give to anybody right now is continuing to support local because you’ll see that impact immediately in your community. Not the same case for the national brands.”

To learn more about TailGate Brewery, you can visit their website.

Editor’s Note: A previous version of this article reported the cost of a case of beer would go up by 25%, given the Trump administration’s tariff placed on aluminum products. This has been changed to reflect a more accurate change in price, based on the cost of each can.