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Saskatchewan breweries face challenges from U.S. tariffs on aluminum
As the clock ticks down to the implementation of U.S. President Donald Trump’s 25 percent tariff on Canadian steel and aluminum, Saskatchewan breweries are bracing for a turbulent ride.
This impending tariff, set to take effect on March 12, has raised significant concerns among local brewers who rely heavily on aluminum cans sourced from the U.S.
Understanding the aluminum supply chain
Despite Canada being a major producer of raw aluminum, the country lacks the necessary rolling mills to manufacture the thin sheets required for can production.
This gap in the supply chain means that many breweries, including Rebellion Brewing in Regina, are dependent on U.S. suppliers for their aluminum cans. Mark Heise, president and CEO of Rebellion Brewing, expressed his worries, stating, “We’re preparing for another roller-coaster ride.” He noted that some suppliers are already stockpiling their Canadian inventories in anticipation of the tariffs.
Shifting suppliers and seeking alternatives
In light of the tariffs, breweries are exploring alternative suppliers. Heise mentioned that in the past, when aluminum tariffs were imposed, his company had to source cans from Mexico and even China. Meanwhile, District Brewing’s marketing coordinator, Hayden McPherson, shared that they are already transitioning to more Canadian suppliers, finding better rates as they adapt to the changing landscape.
“We’re finding a lot more Canadian suppliers that are giving us a lot better rates,” McPherson said, highlighting the importance of local sourcing.
The call for domestic production
Both Heise and McPherson emphasize the need for more Canadian-crafted solutions.
Heise advocates for increased domestic production of aluminum products, arguing that Canada should be turning its raw materials into value-added products locally rather than exporting them for processing. He acknowledges that there is likely no quick fix for the challenges posed by tariffs, but he believes that fostering local production can mitigate some of the impacts.
Encouraging local consumption
McPherson also pointed out the importance of encouraging consumers to consider Canadian-made products. He expressed a desire for easier trade between provinces to facilitate this shift. By promoting local breweries and products, the industry can strengthen its resilience against external pressures like tariffs. As Saskatchewan breweries navigate these challenges, their adaptability and commitment to local sourcing may pave the way for a more sustainable future.
