Canada’s craft beer industry is bracing for severe financial strain as the United States prepares to enforce a 25 percent tariff on Canadian goods starting Tuesday. Adding to the pressure, a separate 25 percent tariff on Canadian steel and aluminum—key materials for beer cans—is set to follow. Small breweries across the country are now facing an uphill battle to sustain their businesses amid rising costs and supply chain disruptions.
Small Breweries Struggle to Stay Afloat
Henderson Brewing, a Toronto-based craft brewery founded in 2016, is one of many small businesses confronting an increasingly volatile market. Specializing in a diverse range of craft beers, the brewery now finds itself navigating difficult decisions to keep operations viable.
Steve Himel, president and co-founder of Henderson Brewing, emphasized the tough choices brewery owners must make in these uncertain times.
“One of the hardest decisions any small brewer has to make is when you’re looking at a tank full of beer—6,000 liters—and it’s not right. You have to decide whether to pour it down the drain,” Himel said.
With costs continuing to rise, such dilemmas are becoming even more common across the industry.
Aluminum Tariffs Worsen the Situation
Aluminum cans are a staple of the Canadian beer market, with over 80 percent of packaged beer being sold in cans. While Canada is a major aluminum exporter, the country lacks the facilities needed to manufacture the sheets used to make cans. As a result, aluminum frequently crosses the U.S.-Canada border multiple times before reaching breweries.
CJ Helie, president of Beer Canada, warned that the looming tariffs have already sent aluminum prices skyrocketing.
“The threat of these tariffs, particularly on aluminum, has already impacted costs. The benchmark price of aluminum has increased by 50 percent in 2025 alone,” Helie said.
Higher material costs put additional financial pressure on breweries, which are already grappling with inflation and supply chain disruptions.
Consumer Costs Set to Rise
With increasing production expenses, brewers fear they will have no choice but to pass the costs on to consumers. However, industry leaders worry that there is only so much the market can absorb before customers push back.
“We’re already in an environment where our costs are high for other reasons. At some point, our consumers are going to break,” Himel stated.
If the tariffs remain in place for an extended period, small breweries may struggle to survive. Unlike multinational beer companies with deep financial reserves, independent craft breweries operate on much tighter margins and lack the ability to absorb sudden cost increases.
“Catastrophic” Consequences for Small Brewers
Himel fears the worst for small breweries across the country if the tariffs persist.
“The big breweries, which in Canada are owned by multinationals, have the cushion to ride this out. They’re not going to care. For the small beer businesses, this could be catastrophic,” he warned.
Helie echoed these concerns, highlighting the unprecedented financial burden placed on brewers.
“These are staggering numbers—numbers that Canadian brewers cannot afford to absorb. We’re talking about significant price increases and major disruptions in the market,” Helie explained.
The Uncertain Future of Canadian Craft Beer
The ongoing tariff conflict between the U.S. and Canada puts the future of many small breweries at risk. With soaring aluminum costs, uncertain consumer demand, and financial instability, the industry stands at a crossroads.
For now, craft brewers are calling on policymakers to reconsider the tariffs and prevent further economic strain on small businesses. As this situation develops, the fate of Canada’s craft beer industry remains uncertain, with many hoping for relief before irreversible damage is done.
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