OKC breweries prepare for higher tariffs, how consumers will be affected

Earlier this month, President Trump reinstated tariffs on metals like steel and aluminum which has local breweries taking a second look at their operating budgets. 

U.S. craft beers are usually brewed in steel and canned in aluminum. 

News 9 talked to employees at 2 Oklahoma City breweries about the potential cost increase.

3 key takeaways:

1. President Donald Trump reinstated a tariff on steel imports and increased a tariff on aluminum, in a move to reduce foreign competition.
2. OKC brewery workers said they have a backstock of steel and aluminum for now.
3. When that backstock runs out, the only choice is to pass the cost onto customers, something they don't want to do, but may be forced to.

“In one run, we'll go through about 10,000 cans. We could be going through anywhere between 20 to 50,000 cans in a week,” Stonecloud Brewing Company told News 9 on Thursday. 

President Trump reinstated a 25 percent tariff on steel imports and increased the aluminum tariff from 10 to 25 percent. He decided to reinstate the tariffs to bolster domestic steel and aluminum industries by reducing foreign competition. 

With higher tariffs, cans may become costlier, another brewery owner explained. 

“Typically there's a lag. I think we expect to see higher prices based on the tariffs we've seen, but right now we're still working through pre-tariffs' inventory,” said Patrick Lively, the founder of Lively Beerworks. 

Lively Beerworks is not alone, according to Josh Masterson, the Director of Marketing at Stonecloud Brewing Company. 

“Luckily, here at Stonecloud, we have a big backstock of cans and that’s the majority of aluminum that we use.” 

The supply won’t last forever, however.  

When it runs out, “If we're impacted at the end of the day, the customer would be impacted because the only way to make up for a rising cost is to pass it on to the customers,” Masterson stated. 

Stonecloud Brewing Company said it does not want to pass the cost on to customers. 

“I don’t think any brewery in Oklahoma or anywhere wants to see that happen, but it’s the unfortunate truth of what would happen,” Masterson added. 

Lively Beerworks said hypothetically, “If the price of our cans go up by two or three cents, the price of the product goes up by two or three cents.” 

The good news, Stonecloud Brewing Company shared, is that although market prices may rise for aluminum and steel, the price of a pour in the taproom should stay the same.