Full Breakdown
U.S. Tariffs Spur Canadian Brewers to Source Aluminum Cans from China
By Drooid · · How we work
Core Event
Since early last year, U.S. tariffs on aluminum have lifted North American can prices by roughly 50 percent, raising the cost of aluminum on both sides of the border. The price surge has made aluminum the single most expensive input for many Canadian breweries, prompting a rapid shift from traditionally U.S.-sourced cans to Chinese-manufactured containers.
Background & Context
The United States imposed a 50 percent tariff on Canadian aluminum, while Canada responded with comparable duties but exempted food- and beverage-packaging goods. Because U.S. Midwest aluminum coil serves as the pricing benchmark for can contracts, the tariffs have driven up the cost of cans across the continent. Factories outside Shanghai now sell cans at about one-third the price of U.S. products, giving Chinese aluminum a “tremendous edge,” according to Canvas Craft Industries founder Vadim Bajgoric.
Impact on Canadian Brewers
- Cost pressure: The price gap can reach eight cents per can; a five-cent difference can determine profitability, as noted by a small-batch spirits producer.
- Business shifts: Importer Shane Vear of Caravan Bev Co. reports a 30 percent increase in business since the tariffs began.
- Supply changes: Over the past eight months, The Strait & Narrow moved most of its can purchases to China, citing lower volatility compared with U.S. supply.
- Financial strain: Big Rock Brewery estimates that aluminum tariffs have cost it well over $1 million this year and has recently laid off 10 percent of its workforce.
Official Statements & Responses
Brewers emphasize survival over national-supply preferences.
Verbatim Quotes
- “Five cents a can is the difference between being profitable or not in our business,” — Yuri Akeroyd
- “In the past, we’d looked at buying from overseas as being a lot more volatile and risky, whereas over the last year we’ve felt that it’s actually less volatile,” — Mr. Akeroyd
- “Getting 355-millilitre standard cans out of Crown Calgary ticks all those boxes,” — David Kinder, Big Rock’s president
- “It’s not really about what I’d like to do. It will get to the point it’s about what I need to do have a viable business,” — Mr. Kinder, Big Rock’s president
- “You trade the volatility of the commodity market for the unpredictability and volatility of the shipping world – which we’ve done in the past,” — Jim Lister, president of Victoria-based Phillips Brewing and Malting Co