What new steel and aluminum tariffs could mean for local breweries

TWO HARBORS, Minn. (Northern News Now) - In 2018, during his first term, President Donald Trump imposed a 10% tariff on steel and aluminum entering the United States. Starting March 12, those tariffs are set to increase to 25%.

On an average day, Castle Danger Brewery in Two Harbors fills and ships more than 28,000 aluminum cans of beer. On top of that, they also use steel kegs and vats to store their products.

Steel and Aluminum play a big part in beer production for many brewers like Castle Danger. While some breweries have shared plans to increase costs due to upcoming steel and aluminum tariffs, Castle Danger leaders aren’t too concerned at this time.

“Our current supplier of our cans and lids use primarily U.S steel and U.S. aluminum,” Public Director of Operations Max Pittman said. “So, we do not expect any immediate price increases.”

Pittman said during the pandemic, they saw supply and demand issues when it came to getting their cans. Since then, they’ve had many conversations with their can supplier, Crown, about their future costs.

Pittman encourages other brewers to reach out to their suppliers about how these tariffs may affect them because communication is critical in mitigating costs.

Although Castle Danger isn’t too worried about the tariffs, there are some things consumers should be aware of.

Monica Haynes is the director of UMD’s Business and Economic Bureau and said consumers will more than likely see increased prices on products. Recently, lots of people have been buying things like cars in hopes of getting ahead of the tariffs, but that is only speeding up the process.

“People are changing their behaviors in anticipation of tariffs,” Haynes said. “That creates higher prices because there is more demand.”

Haynes said there is lots of uncertainty about how these tariffs may impact people and there is really no way of knowing what could come next. But for Castle Danger, they will continue to run their business as usual.

“Keep drinking good beer and we’ll keep getting it to you,” Pittman said. “We don’t anticipate any price increases.”

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