As St. Patrick’s Day approaches, many people will raise a glass to celebrate. However, for the craft beer industry, the holiday isn’t all about cheer. U.S. tariffs, particularly under the Trump administration, have created uncertainty for brewers, leading to rising costs that could be difficult to pass on to consumers.
One local brewery feeling the pressure is Alameda Brewing in California. Co-owner Vincent Phua, whose brewery opened in 2015 amidst the craft beer boom, expressed concerns about the growing costs linked to global trade tensions. Phua explained that while they’re accustomed to fluctuating prices, the impact of tariffs on essential ingredients and equipment has made business planning particularly challenging.
“It definitely concerns us,” Phua said in an interview with CBS News Bay Area. “In the next couple of months, we’ll see how much of this cost will be passed down to us, but we’re fully anticipating it. I think we are a bit more vulnerable than larger companies.”
As a small microbrewery, Alameda Brewing will feel the sting of higher-priced aluminum cans from Canada, but it’s the anticipated rise in Canadian malted barley costs that Phua is particularly worried about. He expects a price increase of up to 20% in the coming months. For certain beer styles, the cost of barley could account for up to 80% or more of the production expenses, creating a substantial challenge for the brewery’s bottom line.
The tariffs also complicate the brewery’s plans for expansion. Alameda Brewing needs to purchase large stainless steel fermenting tanks, typically imported from China. The tariff on these tanks has already driven up prices by about 20%, and Phua is concerned it could increase even more, possibly up to 50%. To avoid further financial strain, he plans to make the purchase soon, despite the uncertainty surrounding future tariff hikes.
“There’s no clear direction on what’s going to happen,” said Justin Green, the brewery’s head brewer. “First it was 25%, then it dropped to 20%, and at one point, it looked like it might go up to 200%. We have no idea where it will land.”
Despite the unpredictability and mounting challenges, the Phua family remains committed to their business. The brewery is not only a source of livelihood but also a way to fulfill a dream that Phua’s father, Bill, had for his retirement.
“I’m living my dream now,” Bill Phua said. “Whatever comes, we’ll deal with it. Nothing is going to stop us from making beer!”
While the tariffs aim to support American grain farmers, they are having unintended consequences on the craft beer sector. Much of the U.S. malted barley is being exported to Mexico, leaving domestic brewers in a difficult position. The ongoing trade war continues to create confusion and anxiety across the industry, leaving brewers unsure of how to plan for the future—especially as they prepare for a holiday that should be all about celebration, not price hikes.
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