SOUTHFIELD, Mich. (WXYZ) — Michigan's nearly 400 breweries are bracing for potential price increases as new tariffs on steel and aluminum take effect.
"It's been a little bit hard for breweries in general and one more bit of pressure is not really welcome," Scott Graham said.
Graham is the executive director at the Michigan Brewers Guild, which represents about 250 brewers across the state. He notes that the now-50% tariffs imposed by the Trump Administration stand to add more financial strain to beer companies that are already dealing with higher costs for labor, barley and other materials.
Watch our interview with Scott Graham below:
"It really is probably going to add to their costs," Graham said. "A brewery can't just pass every cost on. It kind of has to think of what the price of its beer is to the consumer and how much they can pass on."
With consumers changing their habits in the last year and many families eating out less, Graham says brewers could face stiffer competition if they're forced to raise prices.
Related video: Tariffs on steel and aluminum double
When asked about hopes for the brewing industry moving forward, Graham said, "I similarly like to be optimistic and I'm hoping that deals get worked out and negotiated and things settle down. One of the worst parts of this is hearing news and not knowing what's going to happen and being uncertain. Businesses don't like uncertainty."
Graham says it's unclear how long it might take before consumers see impacts on shelf prices on their favorite craft beers if the new tariffs continue as implemented.
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