Article Summary –
Beau Baden, owner of Sherman Street Beer Company, is concerned about the economic impact of President Trump’s recent tariffs on imported goods, which include a 25% tariff on steel and aluminum, increasing costs for essential materials like aluminum cans and imported hops. The tariffs, part of a larger trade initiative that initially announced higher rates before settling on a 10% tariff for most imports, have left businesses, especially in Pennsylvania’s thriving craft beer industry, facing financial uncertainty and the prospect of passing increased costs onto consumers. Despite hopes from the Trump administration that tariffs might boost domestic manufacturing, experts and business owners, including Fred Maier of Susquehanna Brewing Company, express skepticism, fearing that the financial burdens will ultimately harm small businesses and the wider economy.
In early April, Beau Baden wasn’t focused on tariffs. As President Trump’s sporadic tariff plans loomed, Baden prepared for Sherman Street Beer Company’s fourth anniversary, a venture he launched in 2021.
Baden anticipates increased costs for imported hops and aluminum cans due to Trump’s tariffs—taxes on imports impacting businesses and consumers.
With the anniversary event approaching, Baden’s focus shifted to beer, food, and the Mrs. Roper Romp, celebrating the sitcom “Three’s Company.”
“I’m more stressed about our anniversary than tariffs,” Baden remarked post-celebration on April 15. The event was a success, with new beers, a pig roast, and Maryland crab pretzels.
However, the arrival of 20,000 cans made Baden worry about costs, as Trump’s 25% tariff on steel and aluminum took effect March 12.
Baden’s brewery also imports hops and malt globally, and future equipment will likely be foreign. Trump’s tariff strategy has left business owners like Baden uncertain about import taxes.
“Morning updates differ by afternoon,” Baden noted. “For us, any cost increase is tough. Breweries work on slim margins.”
Following the April 2 tariff rate announcement affecting key trade partners, Trump reduced tariffs after markets tanked. He planned a 90-day tariff pause after “Liberation Day.”
Implementing a 10% tariff on most imports, Trump’s strategy still concerns economists, potentially hurting U.S. businesses and consumers.
The U.S.-China trade war escalated with Trump’s tariff increase on Chinese goods, prompting China’s retaliation. Economists predict consumers may face higher prices for goods and potential shortages.
The administration says tariffs will boost U.S. manufacturing jobs, but experts disagree. A CNBC survey found companies favor automation over human jobs.
Economic pain for Pennsylvania’s breweries
Baden is not alone in his concerns. Tariffs trouble Pennsylvania’s craft beer industry, which hosts about 530 craft breweries, according to the Brewers Association.
Gov. Shapiro highlighted Pennsylvania’s growth as the second-largest craft beer producer. New federal tariffs challenge breweries financially.
Small breweries may increase beer prices due to rising costs. However, after COVID-19-induced inflation and a potential recession, owners are cautious about passing costs to consumers.
“We may absorb costs in 2025,” Baden stated. “We’ll see how 2026 goes and assess efficiency and economic conditions.”
Jeff Fegley of Brew Works fears the tariffs’ financial impact. His business helps revitalize Bethlehem after steel industry decline.
Fegley hopes the administration won’t raise tariffs further, as they impact small businesses. “Consumers ultimately pay,” he said. “We can’t absorb it all, which may affect restaurant sales.”
Fred Maier from Susquehanna Brewing Company and Brewers of Pennsylvania president shared concerns about economic uncertainty post-pandemic stability in 2024.
“Last year, supply chains normalized,” Maier said. “In early 2025, I was optimistic until tariffs started impacting the industry.”
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