Plymouth Brewery Says It Will Feel Tariff Impact
Economists are keeping an eye on the impact of new federal tariffs. So are local breweries.
A 25 percent tariff on imported metals — including steel and aluminum — has caught the eye of Luce Line Brewing in Plymouth.
“The challenge with this situation is it’s really hitting us hard in a few key areas,” said Tim Naumann, owner of Luce Line Brewing. “One is steel. So, all of our equipment is made out of stainless steel, and a lot of our other support devices and hand tools and things are made out of steel.”
He’s concerned that the tariffs will drive up the cost of new equipment.
The tariffs are also significant when considering a canning operation.
Luce Line sells canned beer in its taproom, as well as in local liquor stores and restaurants.
“All of our distribution is in cans, and cans made of aluminum — and aluminum is another category that’s been hard hit,” Naumann said.
Ingredients in the beer world may also be impacted by the tariffs.
“Barley is a significant part of our overall ingredients mix,” Naumann said. “And, you know, the U.S. imports more barley from Canada or Mexico — they’re our two biggest trading partners in barley.”
A 25 percent tariff on imported metals — including steel and aluminum — has caught the eye of Luce Line Brewing in Plymouth.
Tariff Price Impact
Naumann expected price increases and has tried to stock up on materials ahead of big price bumps, sourcing what’s available on the domestic market.
“In doing that, we don’t foresee that we’re going to be raising prices in our taproom,” he said. “And we’re also trying to manage to keep the distribution cost to our channel down as best we can. There might be a slight increase there.”
But, the chance that the tariffs could continue pushing up costs brings concern with each new can off the assembly line.
“In the short term, it’s very disruptive, and so, it makes it hard to plan around and not everybody is going to be as nimble as we are,” Naumann said. “And many small businesses are going to be badly hurt by this.”
But even if prices increase, Naumann hopes customers will still support their local brewery.
” I think that what we are offering is kind of an inexpensive luxury item,” he said. “It’s not a huge expense for a great experience.”
See also: Local Manufacturers Expect Prices To Rise with Tariffs
