US aluminum tariffs raise Canadian craft brewers’ costs as 75% of Ontario beer is sold in cans

Canadian craft breweries are facing higher production costs as US tariffs on aluminum increase the price of beer cans, forcing smaller businesses to absorb some of the extra expense or pass it on to customers.

Wesley Burbidge, who opened Brew Revolution in 2019 to offer affordable craft beer to his community, said the latest US tariffs have made it harder to keep prices down. Although the brewery managed to survive the COVID-19 pandemic, rising material costs have forced it to adjust its pricing.

According to a 2024 report by Beer Canada, around 75 per cent of beer sold in Ontario was packaged in aluminum cans, compared with 43 per cent in 2014. Burbidge said Brew Revolution was trying to limit the impact on customers as the cost of materials increased.

He said, “As we see our material prices increase, we have to make adjustments, but we’re doing everything we can to keep our customers from feeling it.”

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The pressure has intensified since US President Donald Trump raised tariffs on Canadian aluminum to 50 per cent in June 2025. Ontario had previously increased the discount available to businesses on wholesale products purchased through the Liquor Control Board of Ontario (LCBO) from 10 to 15 per cent in May 2025, with the measure initially scheduled to remain in place until the end of that year.

However, a new wholesale pricing structure introduced in Ontario in January 2026 brought further changes for alcohol retailers and businesses. Combined with reduced discounts and higher can costs, these changes have added to the financial pressure on breweries. An separate analysis found that store-bought beer prices had increased by 29 per cent since the start of the pandemic.

Burbidge thinks the outlook remained difficult. He said, “Most craft breweries are struggling enough as is because of COVID, so we were already in a bad spot and then with the economic downturn.” 

Dane Rowlands, an economics professor at Carleton University, said smaller breweries that rely on US-sourced cans were particularly exposed to the tariffs. Their costs are affected not only by duties on imported cans but also by higher aluminum prices in the US market. Unlike larger producers, smaller breweries have limited purchasing power to negotiate better terms with suppliers.

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Rowlands added that some breweries continued to import cans from the US because suitable alternatives were not yet available. Although Canadian manufacturers could potentially expand domestic can production, uncertainty over how long the trade dispute will last has made investment decisions more difficult.

Brew Revolution sources its cans from Brew Supply Group. Burbidge said switching to bottles was not a practical option because it would require a different production process and additional costs, given the brewery’s existing canning setup.

Andrew Qi, an inside sales representative at Metal Supermarkets Ottawa, said sourcing aluminum from outside the US did not necessarily shield buyers from higher prices. “While the tariffs do not directly affect (non-U.S. products), they affect the market, and that affects the buying price of aluminum,” he said.  

Qi explained that aluminum pricing also reflects industry benchmarks used by metal mills to set charges for processing the material into sheets suitable for can production. He noted that one of Metal Supermarkets’ suppliers, Magnum Stainless, had found importing from China cheaper than using its own mill in Quebec.

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However, imports can also attract additional charges. Chinese aluminum products, for example, may be subject to anti-dumping duties intended to address imports sold at prices below the cost of production.

Until more affordable alternatives become available, Burbidge said Brew Revolution would focus on improving efficiency and controlling costs to limit price increases for customers. The brewery has kept spending lean, including by operating without a dedicated marketing budget, in an effort to manage expenses amid rising material costs.