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February 12, 2025

Tariff on imported aluminum opens can of worms for Maine brewers

Aluminum cans Photo / Adobe Stock New tariffs on imported aluminum could mean higher prices for Maine brewers who package their beer in cans.
By Renee Cordes

New tariffs on metal imports due to take effect next month are expected to lead to higher costs for brewers in Maine and elsewhere who sell beer in aluminum cans and use steel equipment.

Repeating a move from his first term, President Donald Trump on Monday signed two proclamations imposing a 25% tariff on steel and aluminum imports from all countries. 

The new measures come on top of 25% tariffs on all imports from Mexico and Canada – this country’s biggest source of aluminum – announced in February and suspended by 30 days.

File photo / Soubanh Phanthay
Alex Maffucci

Atlantic Brewing Co., an 11-employee business in Bar Harbor that cans all of its beers, is bracing for higher prices as a result of the new tax on aluminum imports.

“I expect tariffs to lead to price increases that will be felt by both us as producers and by our customers,” Alex Maffucci, the company’s president, told Mainebiz. 

Regarding aluminum, “Canada is a big supplier for us and I am against this tariff, which will further lead to an inflationary outcome,” he said.

Maffucci also said that the new steel tariff “will most likely delay any capital improvements we were considering,” such as new steel tanks and a new keg, as well as a planned addition to its production space.

“A trade war is bad for American businesses both large and small,” Maffucci warned. “If some businesses are able to pivot, more power to them, but I expect a lot of businesses to be faced with increased costs. I hope those tariffs are short-lived.”

Trade group keeping tabs

Sarah Bryan
File Photo / Provided
Sarah Bryan

On behalf of its members across the state, the Maine Brewers’ Guild said it is keeping close tabs on the situation in Washington.

“Given our shared border, our members have a high source rate of Canadian manufactured aluminum cans, and it is our concern that any disruption to foreign or domestic pricing could negatively impact our state’s service economy and pass on increases to local consumers already grappling with the costs of inflation,” Sarah Bryan, the group’s executive director, told Mainebiz.

“We have been in contact with some of our congressional representatives on this issue already, and look forward to working with all of our legislators to ensure that the impact to our small and midsize producers is duly considered,” she added.

Bigger picture 

In a Wednesday research note, S&P Global Ratings said that while the direct impact of the new steel and aluminum tails on consumer prices and GDP would likely be modest, that could change with wider political tensions.

"If the announced tariffs escalate into a broader trade war, economic conditions could suffer, and we could revise down our macroeconomic forecasts as a result," wrote Satyam Panday, chief U.S. and Canada economist for the ratings agency. "While the tariffs should be positive for domestic steel and aluminum industries, they risk larger knock-on negative effects on downstream users of these metals, such as automakers, can manufacturers, packaging and construction projects.”

The analyst also warned that to the extent businesses can pass on the rising cost, consumers would also eventually see their prices increase.

"Overall, pressure on inflation would rise just as markets and consumers are appearing to be sensitive to inflationary expectations," the New York-based analyst cautioned. 

Talk to us about tariffs

If you'd like to talk to Mainebiz about what impact you expect tariffs to have on your business or industry, please contact Deputy Editor Renee Cordes at rcordes@mainebiz.biz. 

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