Tariffs are brewing up trouble for the craft beer industry nationwide. As part of GHJ’s ongoing conversation with industry leaders, I recently moderated a webinar with the Brewers Association where panelists shared insights on the brewing industry’s response to rising tariffs and changing trade policies. With sweeping new measures such as the “Liberation Day” tariffs and the whiplash of the 90-day hold, it is clear that 2025 has become a turning point for how breweries think about costs, resilience and growth.
Attendees heard from Bart Watson, president and CEO of the Brewers Association, Scott Metzger, president and COO of Craft ‘Ohana, and Steven Rannekleiv, global beverage sector strategist at RaboResearch Food & Agribusiness.
TARIFFS ARE CHANGING THE GAME IN BREWING
Recent tariffs, including Section 232 steel and aluminum duties and new tariffs on imported goods, are beginning to hit brewers where it hurts: raw materials. Malt, barley, hops and aluminum cans, most of which are imported, are becoming significantly more expensive. And many of these materials cannot be sourced domestically at scale.
Panelists speculated that these raw material tariffs are more than a simple policy adjustment. The tariffs appear less about short-term revenue generation and more about reshaping global supply chains for the long haul. For brewers, the implications are immediate and far-reaching.
OPERATIONAL EFFICIENCY MATTERS MORE
In response, brewers need to be even more stringent when it comes to operational discipline. That means tightening financial controls, cutting waste and optimizing processes wherever possible. The elasticity of beer as a consumer good will be tested — passing costs onto customers may not be sustainable in a market where alternatives to beer are increasingly appealing.
The U.S. is already seeing signs of deeper pressure. Inflation has driven up wages while revenue softens. During this webinar, it was discussed that what used to be a short-term cash flow issue could now become an existential challenge.
PROACTIVE STRATEGIES FOR BREWERIES' LONG-TERM RESILIENCE
So, what can brewers do? Panelists agreed that brewery leaders can start by rethinking supplier relationships — by moving beyond transactional interactions and exploring price-locking contracts, where appropriate. At this point, brewers must thoroughly evaluate their exposure and risk tolerance. Those relying on a single supplier or market may want to diversify to remain agile.
Brewery closures are rising sharply, but that also creates potential acquisition opportunities for brewers in a strong position. This environment may reward those who plan for growth while others retrench.
LOOKING AHEAD
The Brewers Association webinar stressed that craft brewers should continue monitoring inflation, wage growth and shifting consumer behaviors. Tariffs are accelerating trends that were already underway, and the ability to adapt will define success. It is a time to lead decisively — because resilience is not just about surviving disruption, it is about building smarter for what comes next.
Check out GHJ’s Tariff Resource Hub to get the latest information on tariff updates across sectors, including those impacting food and beverage industry leaders.
