In 2025, the United States will impose tariffs of 25% and 10% on goods imported from Canada, Mexico, and China, respectively, which has had a significant impact on the export of brewing equipment. Since brewing equipment is primarily made of steel, these tariffs have led to an increase in raw material costs, thereby driving up the production costs of the equipment.

Moreover, the impact of these tariffs is not limited to equipment manufacturers; beer producers are also facing rising costs for packaging materials, particularly due to the increased price of aluminum cans. This, in turn, raises the cost of beer production and may ultimately lead to higher prices for consumers.

As a result, the tariff policy has had negative effects on both the export of brewing equipment and the entire beer industry supply chain.

In response to the increased U.S. tariffs, the beer industry can adopt the following strategies to mitigate the impact and maintain competitiveness:

1. Cost Control & Technological Innovation

• Enhancing Production Efficiency: Implement automation and smart manufacturing to reduce labor costs and increase production capacity per unit, offsetting part of the tariff burden.

2. Pricing & Market Strategy Adjustments

• Adjusting Product Pricing: Modify pricing strategies based on market demand while maintaining cost-effectiveness and ensuring competitiveness.

3. Trade & Policy Response

• Applying for Tariff Exemptions: Some businesses may apply for U.S. “tariff exemptions” or leverage trade agreements to lower costs.
• Strengthening International Cooperation: Engage with industry associations and government bodies to advocate for favorable trade policies.

4. Brand & Product Upgrades

• Enhancing Brand Value: Strengthen brand marketing and increase product added value to reduce price sensitivity.
• Expanding the High-End Market: Develop premium, customized products to improve profit margins and mitigate tariff impacts.