Thom Cheston, the co-founder of Right Proper Brewing in Washington, D.C., is facing challenges due to the 25% tariffs on steel and aluminum imposed by President Donald Trump. The increase in the price of canning material is hitting small businesses like craft breweries hard. Cheston’s business needs to sell over $6,000 of beer just to cover the taxes on the brewery, and he is hesitant to raise prices because of competitors.
The tariffs could have a significant impact on Right Proper Brewing’s bottom line, potentially affecting their ability to hire employees or purchase necessary equipment. While bottles are an option, many craft brewers have been shifting to cans in recent years. The tariffs could lead to an increase in costs, making it difficult for small breweries to compete with larger companies that can source their cans domestically.
Right Proper Brewing sources their aluminum cans from a third party in Canada, making them vulnerable to the increased costs. Larger companies like Molson Coors have the ability to source their cans domestically and would not be as affected by the tariffs. Cheston is concerned about the potential implications of the tariffs on his business and is unsure of how to navigate the situation.
Overall, small businesses like Right Proper Brewing are facing uncertainty and financial challenges as a result of the escalating trade war. The impact of the tariffs on the brewing industry, particularly for craft breweries, could be significant and potentially threaten the viability of these businesses.
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