Saskatchewan breweries are bracing for the potential impact of a 25% tariff imposed by U.S. President Donald Trump on Canadian steel and aluminum, set to take effect on March 12.
“We’re preparing for the next rollercoaster ride,” said Mark Heise, president and CEO of Brewing Rebellion in Regina.
Although Canada is a leading producer of raw aluminum with significant melting capacity, the country lacks the facilities to roll the thin sheets needed for cans. As a result, many breweries rely on the U.S. for their aluminum cans.
“We’re currently purchasing a portion of our cans from the U.S., so it’s a major concern,” Heise explained, noting that some of their suppliers also provide Canadian-made materials.
Heise mentioned that if the tariff is implemented, his company may need to explore alternative suppliers, though he’s not optimistic about the process.
“In the past, when aluminum tariffs were imposed, we started sourcing our cans directly from Mexico and eventually China after Mexican supplies became strained,” he said.
Hayden McPherson, a marketing coordinator for a local brewery, shared that their brewery is already switching suppliers.
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“We’re finding more Canadian suppliers that offer better prices, especially as the situation develops. These are some of the changes we’re making,” McPherson said.
Heise expressed a desire for more Canadian-based solutions, including domestic production of aluminum products.
“We should be turning our raw materials into value-added products here at home instead of shipping them elsewhere to be turned into cans or other items,” he said, acknowledging that there’s likely no quick fix from the government to provide immediate relief from the tariffs.
Meanwhile, McPherson hopes to see smoother interprovincial trade to encourage consumers to choose Canadian-made products.
– With files by Marija Robinson
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