US aluminum tariffs push Canadian beer can costs up nearly 13%

US tariffs on aluminum are raising the cost of beer cans in Canada, putting pressure on breweries that rely on a closely linked cross-border supply chain.

Walkerville Brewery in Windsor, Ontario, have so far avoided passing the higher costs on to customers. However, owner Mike Brkovich said the brewery may have to raise prices in the next three or four months as costs continue to increase. He said, “We’re going to have to increase the prices, I think, in the next three or four months. But we’re trying to hold the prices.”

One of the clearest impacts is on aluminum cans. Brkovich said the cost of a 473 ml beer can has increased from around 31 cents to 35 cents following the tariff changes. Walkerville Brewery uses about 40,000 cans a month and buys them from a Canadian supplier.

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50% tariffs affect the aluminum supply chain

The US first imposed a 25% tariff on aluminum and steel products in March 2025, with Canada responding with matching tariffs. The US later raised the tariffs on aluminum products to 50% in late August, while Canada imposed retaliatory tariffs on US imports.

The impact is particularly significant because Canada’s aluminum industry and the US can-making sector are closely linked. Canada has major aluminum smelting operations, supported by its abundant hydroelectric power, but does not have domestic rolling mills producing the specialized aluminum can sheet used by breweries.

As a result, some Canadian companies send aluminum across the border for rolling before it returns to Canada for can production. The US also supplies a significant share of the aluminum cans used by Canadian breweries.

John Taylor, chair of the Department of Marketing and Supply Chain Management at Wayne State University, said the tariffs are increasing costs for aluminum producers and can affect manufacturers on both sides of the border.

He added, “The can producers have dramatically higher costs of their raw material, aluminum. So, what they ship back to Canada in cans and what they ship into the US market will all be quite a bit more expensive.”

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Higher aluminum costs reach breweries

Taylor said US aluminum producers could raise their prices as tariffs increase the cost of imported metal. Higher raw material costs then feed into the price of finished cans shipped to Canada.

For breweries such as Walkerville, the additional cost comes alongside increases in other inputs. The brewery recently received notice that the price of apple juice used in its cider would rise from $1.80 to $2.05 per liter.

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Brkovich said the brewery is trying to maintain prices and offer promotions to customers while managing higher costs. However, continued increases across the supply chain could eventually make price increases difficult to avoid.