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Trump’s Tariffs Impact Canadian Steel and Craft Brewing Industries

Donald Trump’s new tariffs on Canadian steel and aluminum are set to take effect shortly after 10:00 p.m. Calgary time (12:01 a.m. Eastern). This latest round of steep tariffs has sent Canadian manufacturers into a rush to fulfill orders for American customers before the cost of imports rises by 25 percent.

Manufacturers in Alberta are particularly concerned about how these tariffs will impact their business relationships. Chad Spicer, the owner of All Metal Manufacturing in Calgary, expressed urgency in meeting shipment deadlines. “We are pushing to get our products across the border before the deadline, as any delay could mean lost orders,” he stated. He added that many recipients in the U.S. may be unwilling to absorb the added costs, leading to potential returns at the border.

Calgary’s All Metal Manufacturing is not alone in this scramble; many Canadian metal producers are in a similar situation, racing against the clock to secure sales before tariffs complicate transactions.

The impact of the tariffs is also being felt beyond the manufacturing sector. Canada’s craft brewing industry is preparing for increased expenses due to the higher costs associated with aluminum cans. Brandon Hart, owner of The Establishment Brewing Company in Calgary, remarked on the cultural significance of canned craft beer. “A four-pack of tall boys is synonymous with craft beer, and it’s challenging to move away from that format,” he noted.

Despite being one of the largest producers of raw aluminum globally, Canada often exports the raw material to the U.S. where it is processed into thinner sheets for can production. This system means that Canadian breweries could face tariffs at multiple points in the production and supply chain.

In preparation for the impending tariffs, The Establishment has stocked its warehouse with roughly 300,000 cans, aiming to mitigate the impact for several months of production. “We have secured as many cans as our space allows, but it won’t last indefinitely,” Hart explained, acknowledging the uncertainty that looms over the long term.

In addition to cans, breweries rely on hops sourced largely from outside Alberta, including regions in British Columbia, Europe, New Zealand, Australia, and the U.S. Hart shared his strategy: “We are bringing in all our hops for the year to ensure some predictability in our supply, though the long-term outlook remains uncertain.”

While the Trump administration has framed these tariffs as a measure to combat foreign competition and secure the domestic steel and aluminum sectors, Chad Spicer is skeptical about the feasibility of the U.S. manufacturing industry keeping pace with Canadian production. “The U.S. isn’t likely to ramp up in the short time frame available during Trump’s administration,” he claimed. Spicer believes that U.S. producers may not find it economically viable to compete with Canadian manufacturers, whose products are both affordable and of high quality.

Source
globalnews.ca