SAN DIEGO (KGTV) — President Donald Trump announced new tariffs on aluminum and steel imports on Monday, including those from Canada and Mexico. The 25% tariffs, signed off by the president Monday afternoon, are expected to impact various critical industries, including transportation, construction and packaging.
Local craft brewers, such as Mike Hess Brewing in North Park, could be affected. These tariffs are anticipated to lead to higher costs for packaging drinks, including beer and soda.
During the pandemic, breweries like Mike Hess already faced aluminum shortages due to increased demand for cans. According to Rob Knepp, the production manager at Mike Hess, prices have not returned to pre-pandemic levels, and the new tariffs are expected to drive costs up further.
"When you hear that news, you worry it's going to affect our pricing, our costs. In talking to some suppliers, it's looking like we can expect a half a penny to a penny per can increase with this new tariff," Knepp says. "That's maybe an 8% to 10% increase in cost. It's one of those things that we will incur. It affects our margins."
Knepp also spoke on how the tariff likely won't have a large impact on big breweries since they buy their supplies on a contractual basis. Meanwhile, even smaller breweries will feel the effects more directly.
ABC 10News reached out to the San Diego Brewers Guild for comment on this story, and the guild said it is still evaluating the potential impact of the tariffs on the industry. A spokesperson said the guild will release a statement later this week.
Mike Hess Brewing is bringing back its "Cookies on Tap" promotion in conjunction with Girl Scout cookie season. For $20, beer aficionados will get five beers paired with five cookies; they're carefully selected to match the flavor profiles.
The special begins on Feb. 14 and runs through Feb. 23. A portion of the proceeds goes back to support local Girl Scouts.
