Canada famously has stronger beer than the U.S. Unfortunately, our southern neighbours happen to have most of the cans we use to drink it.
Driving the news: The ongoing tariff rift between Canada and the U.S. is set to raise the price of beer cans on both sides of the border. Beer Canada president CJ Hélie told The Globe and Mail that he expects Canada’s beer industry to take a $330 million hit this year.
Catch-up: Canada provides ~70 per cent of the U.S.’s primary metals like aluminum, but it’s mainly U.S. manufacturers who turn that raw metal into cans, particularly the popular 473-millilitre tallboy tins.
- Because Canada’s retaliatory tariffs on U.S. goods include aluminum products, beer cans will likely be hit with tariffs at least twice before making it to your fridge — once when the raw aluminum is sent to the U.S. and again when the can is shipped back.
Why it matters: About 85 per cent of beer in Canada is now sold in cans. With the cost of raw aluminum and finished cans going up, Canadian beer drinkers are likely to see price hikes — especially from smaller breweries that have less wiggle room to absorb the extra cost.
- One craft brewer in northern Ontario estimates that the tariffs could drive up the price of a 24-pack by $3 to $5.
Zoom out: Ottawa cut a deal with most provinces earlier this month to remove interprovincial trade barriers for Canadian booze, a move that could provide brewers with some new business and help offset the extra can costs.
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