E-Malt.com News article: Canada: Microbreweries navigating storm of rising aluminum costs

Craft beer lovers may think the toughest choice is picking a flavour, but for brewers, the real struggle starts before the first sip, Yahoo!Finance reported on February 15.

Right now, Canadian microbreweries are navigating a perfect storm of rising aluminum costs, tariffs and supply chain headaches that are making even the simplest can a costly challenge. In an era of economic uncertainty and trade friction, the humble beer can has become a symbol of just how interconnected and fragile local production can be.

Dominion City Brewing in Ottawa wanted to brew a beer with "100 per cent Canadian ingredients," co-founder Josh McJannet told Global News (1). There was just one problem: the aluminum can.

"We brewed an all-Canadian beer — all Canadian, but for the aluminum can, which we could not source in Canada," he revealed.

The 473-millilitre tall can that independent breweries in Ontario favour simply doesn’t exist from a Canadian manufacturer. That scarcity hits budgets fast.

Since U.S. President Donald Trump imposed tariffs on steel and aluminum in February 2025, the price of cans has jumped. McJannet said his costs went from around 15 cents a can to roughly 35 cents.

"The biggest factor is the Trump tariffs," Richard Alexander, president of Beer Canada, told Global News. "I know of one brewery where their aluminum costs have increased 60%. It’s having a serious impact on the brewing industry."

Most goods between Canada and the U.S. dodge tariffs, but aluminum still carries a 25% duty.

It may sound strange that a country with so much aluminum doesn’t produce its own beer cans. Alexander explained that Canada and the U.S. have traditionally worked together on the production of aluminum cans.

"The aluminum is smelted in Canada, goes across the border into the U.S., gets manufactured into a can sheet, and then it comes back to Canada to be made into cans," he said.

Canada has cheap hydroelectric power for smelting, but the U.S. has a bigger market for can sheets. That makes it tough to have a fully domestic supply chain.

Even if breweries wanted a fully Canadian supply chain, the numbers don’t add up. Manufacturing can sheets is expensive, and a facility that only serves Canada wouldn’t make economic sense.

Glass bottles are an option, but roughly 80% of Canadian beer comes in aluminum cans. They break less, weigh less and keep beer fresher than bottles.

It’s worth noting how vibrant the microbrewery market has become. Canada’s craft beer sector has grown significantly, with Statistics Canada reporting a rise in the number of small breweries from under 400 in 2010 to more than 1,200 by 2025. Ontario and British Columbia alone account for a large share of this boom, showing just how much Canadians value local, independent beer.

It's hard to guess what comes next for Canada's access to aluminum cans, as current economic relations with the U.S. are fluid and unpredictable. McJannet is cautiously optimistic but says the industry is preparing for ongoing uncertainty.

"We can’t expect things to snap back into place. That language around this being a rupture, not a transition — I think we’re feeling that," he said.

In the end, Canadian beer fans may take a simple can for granted, but behind every pour is a story of supply chain hurdles, tariff volatility and the ongoing challenge of keeping craft beer truly local and affordable.


15 February, 2026