“Brewing Trouble: Trump Tariffs Pour Higher Costs on Canadian Beer”
Beer Canada, representing over 90 percent of domestic beer producers and $14 billion in economic activity, warns that U.S. tariffs on Canadian aluminum—effective March 12, 2025—are poised to drive up prices for Canadian beer drinkers. Despite the pride in choosing local brews over U.S. imports, the industry faces a double hit from these “unjustified” tariffs and a looming federal excise tax hike, threatening jobs, investment, and affordability.
Most beer cans in Canada, including popular 473-ml “tall boys,” start with Canadian aluminum but cross the U.S. border twice for processing. Trump’s 25 percent tariff on Canadian aluminum adds an estimated $165 million annually to the $3.7 billion in cans Canadian brewers use—about four to five cents per can, according to Karine Cousineau, Beer Canada’s vice-president of strategic communications. If Canada’s retaliatory 25 percent tariff on U.S. aluminum sheets or finished cans takes hold, costs could double to $330 million.
Compounding the pressure, a federal excise tax increase of 2 percent hits beer, wine, and spirits on April 1, 2025, down from a planned 4.7 percent but still piling on $12.8 million in costs—plus sales taxes. “Beer taxes already make up 46 percent of the retail price, the highest in the G7,” Cousineau said. “Adding nearly $350 million in new costs risks significant fallout for an industry that’s barely passing on recent operational hikes.”
Brewers face a softening alcohol market and an affordability crisis gripping Canadian families. “It’s tough to predict how each brewer will adjust,” Cousineau noted, “but consumers will feel this at the checkout.” Retail and hospitality sectors, already stretched, may struggle to absorb more increases, potentially chilling growth and jobs.
Beer Canada calls on federal and provincial governments to:
- Halt automatic annual beer tax hikes.
- Deliver tax relief for brewers, hospitality, and consumers.
- Safeguard beer industry jobs amid trade tensions.