The Effects of President Trump’s Tariffs on Chicago-Area Breweries

PLAINFIELD, Ill. (WLS) — Local business owners in the Chicago area are feeling the impact of President Donald Trump’s recent implementation of 25% tariffs on steel and aluminum imports, as reported by ABC7.

Most of everything breweries use in the process of brewing beer uses steel and aluminum, which means the cost of producing beer is going up.

ABC7 Chicago is now streaming 24/7. Click here to watch

A conveyor belt brings each aluminum can of beer down the line to get a label, which then join 23 others in a case bound for a retail location.

Businesses like Werk Force Brewing Co. are seeing a 25% increase in the cost of cans due to the tariffs on steel and aluminum. To combat this, the brewery had the foresight to order 160,000 cans, an amount that will last them for the next eight months.

“Every day we wake up reading the news… It’s like COVID all over again,” said Brandon Wright with Werk Force Brewing.

Steel and aluminum are essential materials used throughout the brewery, from the large stainless steel barrels down to the kegs. Brewers at Werk Force Brewing Co. express a preference for utilizing materials that are made in America.

“The big question everyone says is, ‘Why don’t you just buy American made aluminum?'” Ray Stout with the Illinois Craft Brewer’s Guild. “Like, that would be great. There’s not enough.”

RELATED | Canada, Europe hit back after Trump’s 25% tariffs on all steel and aluminum imports go into effect

At Hop District Brew Pub in La Grange Park, they use malted barley, which they get from Canada and is also going to be subject to tariffs. That will add even more to the cost of production. Also, that’s on top of the cost of the 64-ounce aluminum growlers, which cost about 60 cents on Tuesday, but cost 25% more now.

Brewers say they are reluctant to pass the costs along to customers, but they have little choice.

“Everything in here could be affected potentially,” said Jim Koblish with Hop District Brewing.

Koblish is in the process of building a new production facility in Brookfield for Hop District Brewing, and he said because of the tariffs increasing the cost of aluminum, he’s considering going to glass bottles.

“It could be such a large increase on our input costs, we’re considering changing our entire production model,” Koblish said.

It’s a tough time for many smaller breweries. They employ about 16,000 workers in the state and provide an economic impact of about $3 billion, but the tariffs will be a burden.

“You throw a 25% tariff on that, we’re talking about millions of dollars that are going to be passed on to the consumer,” Stout said.

Aside from the increase in costs right now, brewers said one of the most difficult issues they’re facing is the uncertainty, not knowing just how long the tariffs will last.