(28 Mar 2025)
RESTRICTION SUMMARY:
ASSOCIATED PRESS
Minneapolis – 20 March 2025
1. Various cans of beer moving through production line
2. SOUNDBITE (English) Jim Diley, Fulton Brewing COO & Co-Founder: ++PARTIALLY COVERED++
“The reality is these tariffs have come in so quickly and so fast that the entire market’s trying to understand the longer-term impacts. Cans make up about 60% of all of the beer that reaches our customers, whether that’s at a bar, a restaurant, or in your backyard.”
3. Cans of beer in warehouse
4. Various worker packaging cans
5. SOUNDBITE (English) Jim Diley, Fulton Brewing COO & Co-Founder: ++COVERED++
“The tariff issue that has recently come about is worrisome. You know, we’re already under pressures of consumer demand and changing habits. A can going up half a cent, maybe a penny or two, that might seem small, but over a year, that’s hundreds of thousands of dollars. And that doesn’t mean money in someone’s pocket. It means that we’re not able to hire to grow.
6. Various cans on shelves
7. SOUNDBITE (English) Jim Diley, Fulton Brewing COO & Co-Founder: ++PARTIALLY COVERED++
“Besides aluminum in cans, one really important ingredient is malted barley.”
8. Various brewing tanks
9. SOUNDBITE (English) Jim Diley, Fulton Brewing COO & Co-Founder: ++PARTIALLY COVERED++
“Just this week, we had a shipment coming in from a supplier in Canada of a product that we needed to put into a beer. And FedEx held the package and it’s still sitting in customs because they just didn’t know what to do with it.”
10. Keg of beer
11. SOUNDBITE (English) Jim Diley, Fulton Brewing COO & Co-Founder: ++COVERED++
“Beer shouldn’t be a luxury item. It should be affordable and accessible to everybody. And the more the cost goes up, the more challenging that becomes.”
12. Various cans of beer on shelves
STORYLINE:
America’s craft brewers already have enough problems. Hard seltzers and cocktails are muscling into beer sales. Millennials and Gen Z don’t drink as much as their elders. Brewpubs still haven’t fully recovered from the shock of COVID-19 five years ago.
Now there’s a new threat: President Donald Trump’s tariffs—including levies of 25% on imported steel and aluminum and on goods from Canada and Mexico.
“The tariff issue that has recently come about is worrisome,” said Jim Diley, COO & Co-Founder of Fulton Brewing in Minneapolis.
Diley said Fulton expects to produce about barrels of beer, about 60% of which will reach customers in a can.
“A can going up half a cent, maybe a penny or two, that might seem small, but over a year, that’s hundreds of thousands of dollars,” Diley said. “And that doesn’t mean money in someone’s pocket. It means that we’re not able to hire to grow.”
Tariffs could impact brewers in ways big and small, said Bart Watson, president and CEO of the Brewers Association, the trade group for craft beer.
Aluminum cans are in Trump’s crosshairs. And nearly all the steel kegs used by U.S. brewers are made in Germany, so a tariff on finished steel products raises the cost of kegs. Tariffs on Canadian products like barley and malt would also increase costs. And some brewers depend on raspberries and other fruit from Mexico, Watson said.
Tariffs on Canadian grain are already disrupting supply chains. Diley said his ingredients are being held at the border because of confusion around how the tariffs should be applied.
That’s bad news for brewers, who depend on regular deliveries in a process that can take two to three weeks.
“Not knowing not being able to rely on that supply chain makes our job difficult to impossible,” Diley said.
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