You may be tempted to cry into your beer over all of the recent problems with the economy and the rising prices of … well, everything.
Unfortunately, your beer will be more expensive, too. No matter what you think of the U.S. tariffs being imposed on most of the world’s nations, they will have an impact on all of us, and on the beer industry. If you’re thinking, “Please no, I just want to relax with my favorite beer and not think about politics,” I wish I had better news.
As noted by experts like Bart Watson, president of the Brewers Association, a trade group representing thousands of America’s small brewers, the industry is facing several “challenges of uncertainty” right now.
Here’s how tariffs could affect beer consumers like you.
Brewing locally
Even if your favorite beer is brewed locally, many of the ingredients and packaging come from far away — in some cases, very far away. While many varieties of hops grow on the West Coast, particularly in Oregon and Washington, there are quite a few that can only be grown in far-flung places like New Zealand, the Hallertau region of Germany or Kent, England. For example, to make many authentic styles of lagers, you need a specific group of hops known as “noble hops,” which can only be grown in Europe.
But perhaps even more troubling is that a lot of the barley and wheat used to make your beer comes from Canada, Europe and Australia. Similar to hops, specific strains of barley and wheat are used to produce specific tastes in different styles of beer. It’s the combination of these ingredients that gives beer its seemingly infinite variety of flavors.
For example, it’s not uncommon to see a beer made with barley from Canada, a little specialty malt from Germany and hop varieties from New Zealand, the Czech Republic and the United Kingdom. These ingredients from all over the map come together in your local brewery and, when skillfully combined by the brewer, create the unique flavors in the beer you love.
There’s really no other way it can be done, and many breweries don’t know how to address this other than by raising prices.
Aluminum and steel
It will also become more expensive to take home beer or pick some up at the grocery store. Over the last decade or so, canned beer has come to dominate craft beer. But the imposition of a 25% tariff on aluminum is going to play havoc with the price of a six-pack — especially since the tariffs affecting aluminum and steel have not been paused.
Another related issue is metal kegs: About 99% of all kegs come from either the European Union or China. Sadly, more expensive kegs will also mean higher prices for your pint.
Then there are the costs to maintain or upgrade brewing gear with stainless steel components. While there are some American brewing equipment manufacturers, many prominent and well-respected equipment manufacturers hail from Europe and China. Buying from them could become almost impossible for new breweries looking to open their first brewhouse.
Many are speculating that the price of a six-pack could go as high as $20, with pints as high as $12.
Simply put, breweries will have to pay more — a lot more in many cases — to buy the ingredients they need to make their beer. Even if you could figure out a homegrown substitute, and even if you could convince farmers to completely shift what they’re growing to satisfy brewers’ needs, it would still take years to make the switch. Hops, for example, take three years to generate a full yield.
What to do?
This could not have come at a worse time for a beer industry not fully recovered from the ravages of the COVID-19 lockdowns.
In the short term, it can’t hurt to call or write your Congress member and voice your concerns. But with the chaos and uncertainty surrounding how and when the tariffs are being applied, most breweries are waiting to see exactly where they land when the dust settles.
Meantime, to give your favorite brewery a fighting chance, buy from them directly and visit their brewery taproom, if they have one. Enjoy their beer, even if it gets more expensive. Drink less, if you have to, but drink better.
Contact Jay R. Brooks at BrooksOnBeer@gmail.com.