The Canadian can industry is bracing for a major shake-up as former U.S. President Donald Trump threatens to reintroduce sweeping tariffs on aluminum and steel. With a 25% tax set to be imposed on these metals entering the United States starting March 12, industry leaders fear significant cost increases that could impact everything from beer and soda to canned foods.
CJ Helie, president of Beer Canada, voiced concerns about the potential consequences of the tariffs. “It’s just another hit that the industry can’t take,” he said, emphasizing that the timing could not be worse for businesses already struggling with high costs.
Although nearly 90% of the beer consumed in Canada is brewed domestically, a large portion of the aluminum cans used—particularly the popular 473-millilitre size—are imported from the U.S. American can manufacturers rely on Canadian metal, which makes up about 70% of the cost of a can. The proposed tariffs would increase the cost of those materials, and if Canada retaliates with counter-tariffs, the price of goods could rise even further.
“We’re still in an affordability crisis. Everybody is feeling it everywhere,” said Helie. “If these tariffs and potential countermeasures by Canada come into play, brewers are going to face a very difficult decision.”
The industry is particularly concerned because the proposed aluminum tariffs are significantly higher than the 10% levies imposed during Trump’s previous term. While the cost increase per can might seem small, the cumulative effect across the industry could amount to hundreds of millions of dollars.
With Canadian businesses already dealing with inflation and supply chain challenges, the added burden of tariffs could have far-reaching effects, potentially leading to higher prices for consumers and difficult choices for manufacturers.