How Tariffs Affect Our Beer

Aluminum tariffs will affect our beer cans. But let’s start with some history before we get to tariffs.

During the 1930s, beer brewers resisted the first cans. Then though, after American Can developed a pressurized design and a coating that prevented the beer from reacting with the tin, Krueger’s Finest Beer and Krueger’s Cream Ale gave it a try. Responding, drinkers said the beer tasted more like draft than bottled beer. Soon after, Anheuser-Busch, Pabst, and Schlitz copied Krueger, and the rest of the story is history:

At sales of 200 million by the end of 1935, the industry quickly saw the benefits of cans. Requiring less hassle, consumers could stop returning bottles for a deposit. In addition, cans became colder quicker, were stackable, and more durable. Now 60 percent of the industry uses cans.

And that is the problem.

Canned Beer

Beer historians tell us that three can designs were a possibility. Some, like Pabst, opted for the flat top, a can that weighed close to 4 ounces and required a church key to get it opened. A second alternative was the cone top. Used by smaller brewers because the shape fit into their bottling equipment, the cone top lasted until 1960. But the third design, arriving in 1975, was most loved by beer drinkers. Still here today, the pull top stuck:

I discovered that beer can history can be captivating. Do take a look:

Tariffs

Fast forwarding 90 years, today we have the aluminum tariffs that make cans less attractive. Slapped on aluminum, empty aluminum beer cans, and imported beer, the levies covered an assortment of countries. They had been 25 percent but climbed to 50 percent (except for the UK) on June 4, 2025.

While tomorrow the tariffs could change, wherever they wind up, we can be sure they will impact aluminum beer cans.

Our Bottom Line: Aluminum Prices

Some suggest moving aluminum production to the United States. But a simple solution is always more complex than it appears. According to CNBC, U.S. aluminum prices are soaring.

You can see the aluminum price increase:

However, the tariff could depend on the country:

Told to bring smelting here, instead, US aluminum producers have been closing smelting facilities. One reason is high priced electricity.

Now, with tech’s massive need for power–especially AI–smelters cannot afford to expand.

My sources and more: Looking at the impact of aluminum tariffs, it made sense to start with some can history, here and here. Then, the article that inspired today’s post was in WSJ. Here, here, and here and here, though, we learned lots more about beer. And finally, for a reality check, CNBC looked at why aluminum production cannot move to the USA. To be considered another day, brewers have said that steel tariffs elevate keg expenses as does a tariff on Canadian malted barley.