Saskatchewan breweries are bracing for the potential impacts of U.S. President Donald Trump’s 25 per cent tariff on Canadian steel and aluminum, which is set to come into effect March 12.
“We’re preparing for another roller-coaster ride,” said Mark Heise, president and CEO of Rebellion Brewing in Regina.
Although Canada is a major producer of raw aluminum and has massive smelting capacity, the country does not have rolling mills to produce the thin sheets needed for cans. Many breweries source their cans from the U.S.
“We are currently buying, sourcing some of our cans from the U.S. So it’s a lot of concern,” Heise said, adding that some of their suppliers are stockpiling their Canadian inventories.
He says if tariffs come into effect, his company may have to look at alternative suppliers, but it is not a prospect he is looking forward to.
“In the past, when there was previously aluminum tariffs, we actually did start buying our aluminum cans directly out of Mexico as well as eventually China after there was pressure on the Mexican supplies as well.”
U.S. aluminum tariffs a ‘brewed awakening’ for Canadian beer industry
District Brewing marketing co-ordinator Hayden McPherson says their brewery is already switching suppliers.
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“We’re finding a lot more of Canadian suppliers that are giving us a lot better rates, especially as things are coming in. And those are some of those transitions that we’re making right now,” he said.
Heise says he would like to see more Canadian-crafted solutions, including more domestic production of aluminum products.
“We should be turning our raw materials into value-added products here domestically, instead of shipping them elsewhere to have them turned into cans or whatever else,” he said, while acknowledging there is likely no “quick fix” governments can use to bring instant relief from tariffs.
Meanwhile, McPherson would like to see easier trade between provinces to encourage consumers to consider Canadian-made products.
— with files from Marija Robinson
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