Breweries preparing for price increases due to tariffs

SPRINGFIELD, Mass. (WGGB/WSHM) - After the United States implemented a 25% tariff on aluminum and steel, a key material needed at most breweries, we spoke with a local brewery to see how they plan to deal with any impending tariffs.

“On average, a four pack of beer at the white lion costs about $17 but with potential tariffs being put in place, that price could rise,” White Lion Brewmaster Mike Yates told us.

He added that so far, they haven’t seen any disruption in supply due to current tariffs, but they could see their profit margin disrupted.

“We’ve received a couple of notices to expect a price increase, depending on what the tariffs settle in at,” Yates stated.

Back on March 6th, President Donald Trump announced tariffs on imports from Canada and Mexico, a possible direct impact for the white lion in the future.

“We also get a lot of grain from Canada, so that’s also going to have an effect, so we could get a double shot of a couple of price spikes,” he claimed.

Like other businesses that rely on supplies out of the country, the hardest part, is what comes next.

“Well, just the amount of uncertainty right now and what’s going to happen, is causing us to put the brakes on any capital projects and kinda focus on doing what we do best,” Yates shared, explaining that as the brewery business grows, so do certain costs. “The beer industry has kinda reached a saturation point where there’s just a tremendous number of breweries, so, it’s been difficult to sell beer the last couple of years, so an extra set of added costs is not helping things out at all.”

The White Lion hopes the tariff remain at a small cost, because the bigger the cost, the bigger it affects the brewery, and in the end, the consumer.