DALLAS (CBSDFW.COM) – Craft beer drinkers, brace yourselves.
In just about a week, President Trump’s new tariffs on imported aluminum and steel will take effect.
Some craft brewery owners worry the move could brew some serious trouble for not only beer, but for local economies.
“As a small start-up business three years ago, we couldn’t invest in a canning line and a bottling line,” said Kat Thompson, owner of Texas Ale Project. “We had to pick one.”
Her “canned” choice could soon come back to haunt her company.
“It’s a big impact because every penny counts,” said Thompson.
The tariff places a 25 percent tariff on steel and a 10 percent tariff on aluminum imported from all countries except Canada and Mexico.
The hope is the increased costs on imports will force businesses to turn to American industry.
“A strong steel and aluminum industry are vital to our national security,” said President Trump on Thursday. “Absolutely vital. Steel is steel. You don’t have steel, you don’t have a country.”
While Thompson buys as much American metal as she can, there simply is not enough domestic product to keep up with the demand.
“It’s not a good thing. I don’t want to be thinking about price changes and margins when I’m trying to run a business,” said Thompson. “I want to be thinking about how to grow.”
It’s not just craft breweries that are worried about the price of their aluminum cans. Traditional beer beverage giants are also concerned.
In a tweet, Miller Coors wrote, “…this tariff flies in the face of the administration’s commitment to growing our economy as it will mean higher prices for consumers and likely the loss of jobs.”
Thompson understands the motivation from President Trump, but worries it will have heavy costs.
“I’m not a politician,” said Thompson. “But all I know is that it could hurt businesses before it gets better.”
The tariff officially goes into effect March 23rd.