Philadelphia brewers say President Trump's 25% aluminum tariffs could force them to raise beer prices
Small breweries across Philadelphia are bracing for financial strain as President Trump's new aluminum tariffs take effect. They warn that the increased costs could soon be passed on to consumers.
Jake Atkinson, owner of Human Robot Brewery in Kensington, says the tariffs leave him with little choice but to raise prices.
"If things continue as they are, the price of your beer will go up," Atkinson said. "That is not good. I don't want to do that. I don't have a choice."
The 25% tariffs on imported aluminum, announced by Mr. Trump in February, went into effect Wednesday. The president aims to boost domestic manufacturing, but Atkinson says it will be challenging for small businesses like his to absorb the costs.
"None of these small businesses have a choice. What's been the hardest thing is it changes daily almost what's happening. Who can keep up?" he said.
At Love City Brewing in Callowhill, co-founder Melissa Walter shares similar concerns.
"We don't have the buying power and negotiating power of a larger brewery," Walter said.
According to Walter, Love City routinely packs 150 cases of beer (3,600 cans) on days when the canning line is in operation, which is about three times a week. To do so, they rely on raw aluminum materials that are now subject to tariffs.
"We spend tens of thousands of dollars on aluminum," Walter said. "To have a 25% increase in our raw materials cost, that has to go somewhere. Our cans are manufactured in the U.S. It's just that the raw materials come frequently from Canada."
Walter says her team worked hard to keep prices steady during the COVID-19 pandemic, but that may no longer be possible. She fears the impact won't just be on the beer itself but also her employees.
"We like to take care of our team. We like to offer them good benefits, and I don't want to have to take any of that away," Walter said.
Despite the financial uncertainty, both Atkinson and Walter say they are committed to staying open and serving their communities.
"Love City was a dream of ours to create a company that was local and that did good things for the community and created more love in the world," Walter said. "That's our whole reason for being here. And we want to keep being here."
