LOUISVILLE, Ky. — President Donald Trump issued 25% tariffs Monday on steel and aluminum, which could have an effect on breweries and the automaking industry in Kentucky. 

What You Need To Know

  • President Donald Trump issued new tariffs on steel and aluminum imports Monday 

  • The Brewers Association, a nonprofit, said this could be a challenge for local brewers

  • UAW Local 862 said the cost of the tariffs will be absorbed by Ford and consumers

  • Trump imposed similar tariffs during his first term

“Aluminum cans are now about 75% of craft brewers' package product, and it's one of the few places we're seeing growth for craft breweries," said Bart Watson, president and CEO of the Brewers Association. "So that's one particular risk we're watching." 

The Brewers Association is a nonprofit that represents small and independent craft brewers. Watson said breweries have seen cost increases on most of the beer-making process.

“Additional cost increases on aluminum cans or on brew houses or steel kegs would certainly pose challenges for breweries in what's already a competitive marketplace,” he said.

Aluminum and steel can also be found at Ford’s Kentucky Truck Plant and the Louisville Assembly Plant. Take the Ford Super Duty truck, for example. 

“The internal parts or the components of the cab itself ... along with the exterior components are aluminum," said Todd Dunn, president and CEO of UAW Local 862. "Of course, the frame is steel ... so it's just a lot of aluminum there." 

Dunn said they are assessing the situation and its potential impact on union membership.

“Will it move into where we can't build enough units and Ford Motor Company has to lay off a shift?" Dunn said. "That's unknown; obviously, don't want to put that scare out there to anyone, but it's always something to consider." 

Both the Brewery Association and the Local UAW said the added cost will have to be absorbed either by their respective business or the consumer.

“It's very, very volatile when you go to add that much cost in a vehicle," Dunn said. "It's going to be shared by the company, and I believe more so by the consumer." 

“That's going to depend on where a brewery is, what their margins already look like and their overall business strategy," Watson said. "But it's certainly a tough time to be eating any costs for small breweries." 

Trump said Feb. 9 the U.S. would also impose “reciprocal tariffs” on goods that other countries have put on U.S. goods. That’s expected to happen Tuesday or Wednesday.

During President Trump’s first term, he also imposed a 25% tariff on steel and a 10% tariff on aluminum.

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