Northeast Wisconsin Breweries Brace for Potential Aluminum Tariff Cost Hikes

(WLUK) -- Breweries' widespread presence in Wisconsin is recognized across the country.

For numerous breweries, canning their beer has emerged as the preferred method for packaging and distributing their products.

Caption: Breweries in northeast Wisconsin brace for possible cost increases from aluminum tariffs (WLUK)

"I think this is the finest packaging option we have for delivering our beer to customers while still keeping it fresh," stated Brad Stillmank, who serves as the president of Stillmank Brewing Co. located in Green Bay.

Information provided by the Beer Institute shows in 2023, 64% of beer in the U.S. was packaged in aluminum cans. But last month, 25% tariffs on foreign steel and aluminum went into effect. The White House says President Donald Trump took action to end unfair trade practices.

Stillmank Brewing is keeping an eye on this issue. They have already noticed changes in the pricing of goods arriving from abroad.

"The items you might typically overlook include tap handles and various products created in the U.S., yet manufactured abroad. These goods will be entering the market soon, and we'll face direct tariff charges for them," explained Stillmank.

On Wednesday, Trump paused reciprocal tariffs In most countries, with the exception of China, the White House informed FOX 11 that the tariffs on steel and aluminum have not been altered.

The Brewers Association Estimates suggest that 10% of the cans used in the U.S. are manufactured using Canadian aluminum.

For the majority of our cans, we source aluminum from businesses located around Chicago," explained Stillmank. "The origin of this aluminum might very well include materials brought in from outside state lines. This situation has potential implications and may cause certain challenges down the line.

For now, local breweries report having sufficient cans on hand, yet they adopt a wait-and-see approach as time progresses. Raising prices is something they wish to avoid.

"We simply need to proceed carefully with this. It seems we have some inventory coming in for the summer season," stated Stillmank.

The timeframe for this might be around 6 to 9 months from now," stated Jay Supple Jr., who works at Fox River Brewing Co. in Oshkosh. "We'll have to adapt our business strategies accordingly if these aluminum tariffs actually go into effect.

Molson Coors, the owner of all Miller brewing products, states that they have redirected their manufacturing processes over recent years to source the majority of their aluminum from within the United States.