DENVER — Earlier this week, President Donald Trump signed a proclamation placing a 25% tariff on all steel and aluminum imports while also ending an exception for allies, including Canada — which sends more than half of all its raw aluminum to the U.S.
On Wednesday, Coloradans in the craft beer industry warned the impact will be felt by consumers if the tariffs are implemented as planned.
Like breweries all across the country, Great Divide Brewing in Downtown Denver uses a lot of aluminum cans. They purchased 5-million aluminum cans last year between their projects and another local brewery they brew and can for, too.
"We use a lot of aluminum, and a 25% increase on our cost for aluminum would be pretty impactful," said Brian Dunn, president and founder of Great Divide Brewing.
According to the Brewers Association's early 2025 sales data, aluminum cans accounted for approximately 75% of packaged craft beer’s volume and revenue across the country.
When President Trump was in office in 2018, he put in place similar tariffs — 10% for aluminum and 25% for steel. Back then though, there were exemptions for several countries, including Canada.
"Even with Canada being excluded from the prior tariffs, we saw aluminum prices increase over time," said Katie Marisic, senior director of federal affairs for the Brewers Association. "There are two things that brewers can do: They can take that on and they can decrease their own profit margins, or they can pass that on to consumers."
The latest amendment to the 2018 tariffs explains that the exemptions for certain countries, "inadvertently created loopholes that were exploited by China and others with excess steel and aluminum capacity, undermining the purpose of these exemptions."
"If this tariff does actually happen, the effect on us would be so great that we would have to pass that on. We're not able to absorb that," said Dunn of Great Divide Brewing. "It would amount to about $1.65 per case in an additional cost to us, which is about 0.41 cents per six-pack in additional costs for us before we pass that on."
The new tariffs are set to start on March 12, but advocates are hopeful a trade agreement happens before then to allow certain countries to have exceptions.
"It has a huge impact on Colorado's economy. You have over 435 breweries in the state. It brings in tourism money for agriculture, it's American manufacturing," said Marisic.
National Politics
Canada and EU push back: Tariffs from Trump draw condemnation
"Hopefully the tariffs don't actually happen, but if they do, we would ask for understanding from beer drinkers," said Dunn. "I hope it gets worked out and some people in Washington change their mind."
In the meantime, the Brewers Association is encouraging consumers to continue supporting their small local craft breweries.
"Go and visit your local craft brewery this weekend. There is going to be a lot of uncertainty going forward. We don't know what is going to happen. But the one thing that I do know is, it's going to be a lot easier to deal with with a delicious craft beer in hand," said Marisic.
Denver7 is committed to making a difference in our community by standing up for what's right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.