BOISE, Idaho — Incoming tariffs on aluminum will likely impact the cost of canned beer for consumers from local breweries like Boise Brewing. President Trump expanded tariffs on imports of aluminum to 25% — breweries are expecting to feel that increase on the canning line.
"One of the most unique aspects of Boise Brewing is that we're a community owned brewery," said Collin Rudeen, President of Boise Brewing.
The Downtown Boise brewery started nearly 11 years ago as a hub for community and quality beer.
"We started canning our products about seven years ago, I want to say," said Rudeen.
Now, they fill about 15,000 cans a month with six different varieties of beer at any given time for customers to take home with them.
But recently, President Trump expanded tariffs on imports of aluminum, raising the tariffs from 10% to 25%—an increase that will likely raise the cost of aluminum cans.
"The actual aluminum in the can itself is a significant expense for making a six-pack as it is, so if that goes up by 25% that's a pretty big impact to our costs," said Rudeen. "We're not wanting to charge you more for a six-pack, it's just the nature of our economics and that's what we will have to do."
Rudeen says the increased cost may prove to be too much for breweries to absorb.
"Pretty much every local brewery, margins on cans are pretty low. So there's no room at all for reducing our margins. It's gonna be passed on to the consumer one way or another, so that'd probably be about 50 cents to a dollar per six-pack increase in price if those tariffs go into effect," said Rudeen.
He says these tariffs are coming at a particularly tough time for local breweries.
"I mean, quite frankly, the craft brewing industry, nationwide and locally, is in a tough spot as it is... More breweries closed than opened," said Rudeen.
Rudeen fears that increased prices may drive customers away.
"I'm a little nervous to have to charge that much more per six-pack and to, you know, are we gonna lose some sales because of that? Are people gonna be making different choices for what they drink and don't drink? Who knows," added Rudeen. "It's not just the tariffs that eventually go into effect, it's the uncertainty too that already is having an effect on our decision-making process. We can't make smart decisions if we don't understand what the situation is."
