Local breweries in Chicago navigating challenges posed by new tariffs.
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Sponsor Our ArticlesChicago’s breweries are facing major challenges due to the newly imposed 25% tariffs on aluminum and steel imports. With costs rising for essential supplies like cans and malted barley, many breweries are struggling to maintain production and profit margins. Some opt to pivot to alternatives, but the future remains uncertain as they navigate whether to pass costs onto consumers while supporting their local economy.
Chicago’s local breweries are facing some serious challenges these days, thanks to President Trump’s newly imposed 25% tariffs on steel and aluminum imports. This situation has sent ripples through the beer-making industry, making it harder for many breweries to keep their production costs under control.
Starting Wednesday, breweries will notice a big jump in the cost of aluminum cans. These essential containers are now around 25% more expensive due to the tariffs. For Werk Force Brewing Co., this has resulted in a strategic plan to order a whopping 160,000 cans last month, anticipating these price hikes and securing an approximately 8-month supply.
Brandon Wright, one of the co-owners at Werk Force Brewing, has compared the impact of these tariffs to the uncertainty of the COVID pandemic. It’s a tough time for all businesses, especially for small breweries that often have tighter profit margins compared to their larger counterparts.
Brewery equipment isn’t just limited to cans; many other items, like barrels and kegs, are made from steel and aluminum, adding to the long list of items that have become more expensive. And while there’s a strong desire among brewers to use American-made aluminum, the domestic suppliers simply don’t have enough quantity to fulfill the current demand.
Some brewers like Jim Koblish from Hop District Brewing are considering a shift from aluminum cans to glass bottles, juggling options to see what might ease the financial burden created by the tariffs.
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