Continued U.S. tariff threats challenge already hard-hit B.C. craft brewers who face input cost increases of 30 to 40 per cent since COVID-19.
B.C.’s 240 craft brewers are bracing for more cost pain as U.S. President Donald Trump says he will end a month-long pause of tariffs on most goods from Canada on March 4.
And while they can look to other markets for their supplies, including within Canada and to Asia, Riley said that isn’t easy to do quickly.
He also stressed that the continuing uncertainty surrounding the looming tariffs is a major headache, making it impossible to plan, especially for small companies, who don’t have resources or staff for complex contingency planning.
Businesses like craft brewers could stockpile supplies — including cans — but it’s a short-term solution, said Roscoe.
Longer-term solutions include diversifying supply markets, producing more aluminum cans in Canada and finding markets other than the U.S. for B.C. products, he said.
While there is some speculation on whether Trump actually intends to impose tariffs, Roscoe believes the threat is real and they will be implemented.
“The reality is the United States has become more and more protectionist,” he said. “It is now very popular with voters in terms of this idea that it’s going to make America great again by bringing jobs back.”
He echoes a recent sentiment from other business people and observers that it’s time to get more manufacturing in B.C. and Canada, in this instance, including plants that manufacture cans.
Beattie said they’re also asking the province for help, something they were doing even before the threat of tariffs, because of rising supply costs. They want B.C. to lower the markup — or tax — on beer that is linked to the amount that is produced by a brewer, lowering it for small producers.
Beattie says the B.C. government is listening, but there’s been no change yet.