Trump tariffs on aluminum and steel could raise beer prices, affect SoCal businesses

ORANGE, Calif. (KABC) -- The co-founder of a SoCal craft brewery said Wednesday that some of his suppliers have warned him about possible increased costs because of tariffs imposed in March.

Casey Golovko has been a loyal customer at "Everywhere" since the brewery's opening in 2022.

"It's very relaxed, which is the reason why I come here a lot, and the employees are just so welcoming and nice," Golovko said.

One thing that may change soon is the cost of her malty brews.

"The tariffs scare me because I don't want to pay extra for things," Golovko said.

Beer lovers may have to dig deeper into their pockets thanks to a 25% tariff imposed on steel and aluminum last month.

"Everywhere" co-founder Daniel Muñoz said he has already received notices from some of his suppliers.

"Letting us know that the prices were not changing in the immediate, but that they cannot promise that in the future," Muñoz said.

Muñoz said he didn't know yet whether his suppliers would cover the tariffs or whether they'd have to increase their prices.

"If the cost of producing something goes up, that'll pass on to us and eventually pass on to the consumer," Muñoz said.

With 40% of their beer canned in aluminum, that's a big deal.

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"We pay about 15 cents a can, landed, and that makes about, call it, 15% of our total cost of our case of beer," Muñoz said.

Before the beer is canned, the chemistry has to happen in the steel fermenters.

"This is where our beer is made," Muñoz said, pointing to the tanks.

When asked whether any other material could be used for the fermentation process, Muñoz replied, "I mean, people do it on other materials, but that's not the way to go."

Muñoz said they buy their tanks used, but those were already hard to come by.

"If new steel is going up, that market probably shrinks even more and it could be a potential challenge to find more tanks," Muñoz said.

As Muñoz waited to hear whether his customers would take the hit down the line, this IPA-lover said that even if the cost of a pint went up, she'd bring her business here because it was about more than the beer.

"I am choosing where my dollar goes nowadays depending on what the company is and what I actually need, and I'm spending my money more on local businesses," Golovko said.

Muñoz said he doesn't think they'll have to lay off any employees and said the tariffs shouldn't change their plans to open two new locations in Long Beach and Portland, Oregon this summer.