Trump’s aluminum tariffs tough on Sask. brewery’s beer can bottom line

A Saskatchewan brewery CEO is hoping U.S. aluminum tariffs will lift soon.

Great Western Brewing is stuck in the tariff crossfire, with beer cans being manufactured in both Canada and the U.S.

“We’re getting all too familiar with tariffs,” said CEO and president Michael Brennan.

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American aluminum tariffs recently increased to 50 per cent under President Donald Trump’s executive order, with 50 per cent Canadian countermeasures to match.

Brennan said aluminum ingots go into the U.S. to be processed into aluminum sheets. He said the sheets then return to Canada to be created into aluminum beer cans.

“We get caught a little bit in that,” the CEO said. “That’s probably the most frustrating for us.”

Great Western Brewing is based out of Saskatoon. (650 CKOM file photo)

Brennan said the additional levy on beer cans adds up as the company fills 45 million beer cans in a year.

“It bounces around a lot, but it has a significant impact on our costs per unit,” he said.

Brennan said the company has tried to eliminate any inputs from the U.S. at the brewery – but it can’t get around production of beer cans.

Saskatchewan retaliated against U.S. alcohol tariffs by installing a 50 per cent surcharge on American booze coming into the province on Sept. 8.

The province remains one of two that allows the sale of U.S. alcohol since the trade war began over a year ago.

The Saskatchewan Liquor and Gaming Authority (SLGA) reported that American alcohol sales dropped by 40 per cent, last fiscal year.

The SLGA reported a slight increase in local alcohol sales at five per cent.

Brennan said he is satisfied with the Saskatchewan government’s response to the tariffs, but would encourage lawmakers to look at how excise taxes are charged to brewers of every size.

He said he hopes all consumers are looking to see what products are locally made before making a purchase.

—with files from 650 CKOM’s Brittany Caffet