‘Those prices will be higher’ | Tariffs on aluminum likely to impact East Tennessee beer industry
While many breweries may not feel impacts now, economists warn that price increases will trickle down the line quickly.
KNOXVILLE, Tenn. (WVLT) - President Donald Trump’s latest tariffs on steel and aluminum took effect on Wednesday, leaving many small businesses to brace for possible impacts.
Xul Beer Company brews all of its products in house. Many enjoy pours in the tap room, but nearly half of the product goes out in aluminum cans.
“500 to 800 cases of beer per week is what we can. So, it’s a substantial amount,” said Brad West, the co-founder of Xul. “We don’t know what it looks like yet. We could see some increases, but it’s just still too early to tell.”
Like many craft breweries, Xul sources supplies from a variety of vendors. While local spots like Xul may not see impacts now, economists warn that price increases will trickle down the line quickly.
“[A brewing company] might have some aluminum on stock, but as they run out, they’re gonna have to fill their supply, then those prices will be higher,” said Dr. Michael Kofoed, an assistant professor of economics at the University of Tennessee.
Kofoed said we’ll soon see companies who must pay tariffs then raise their prices to make up the costs.
“Restaurateurs will feel this very quickly,” Kofoed said. “They’ll have to pay prices for that and that means higher prices for the consumer.”
Tariffs on all steel and aluminum imports now sit at 25%. This could also bring possible price increases to appliances, machinery and more.
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