Tariffs Impact Canadian Breweries

Impact of U.S. Tariffs on Canadian Breweries

Phil Smith, owner of Tinhouse Brewing Company, is adapting to U.S. tariffs by sourcing more materials from China and Canada. Here's a closer look at his decisions and the broader effects on Canadian consumers and businesses.

Key Points:

• Phil Smith plans to purchase Chinese cans instead of American ones.
• Canadian provinces are reducing American product sales.
• Shift in grain sourcing from one-third of each (U.S., European, Canadian) to 80% Canadian and 20% European.
• Potential impacts on customer base and buy-local movements.

Supply Chain Changes

Due to tariffs, Smith is shifting from American cans to Chinese alternatives, which saves him about a penny per can. Despite this small saving, it's a reflection of the larger impact of tariffs on Canadian businesses.

Consumer Response

Many Canadians are reacting to the tariffs by:

• Choosing to buy more Canadian products.
• Canceling trips to the United States.
• Provinces removing American wine from liquor stores.

Future Outlook

With the change in grain sourcing, Tinhouse Brewing is primarily using local Canadian products to mitigate losses. Smith is hopeful that local consumers will support his business in light of the tariffs.

Smith acknowledges, however, that these changes may result in net losses for many: "If it's made up for by locals staying local and buying local, then maybe it will net out. But in the end, all of this might be a net loss for everybody: small businesses, big businesses, and consumers."