Canada’s craft brewers are first casualties of US trade war

CANADIAN craft beer makers are facing an aluminium drought amid Donald Trump’s trade war. Small brewers are struggling to source cans amid increased demand for the metal and supply chain disruption.

In the wake of the tariffs being confirmed, large soft drink makers stocked up on the metal, leading to the current supply shortage, leaving small independent companies in trouble.

Luke Harford, president of the industry association Beer Canada, said the aluminium tariff brought in by both Canada and the United States will cost the domestic brewing industry an additional $10.5m (£8m) this year.

The businesses can 50pc of their product, according to Mr Harford. The aluminium shortage is therefore likely to damage profits. Many firms invested in canning technology and are therefore unable to switch to bottles instead.

While Canada is a major aluminium producer, it still imports 2bn cans each year to meet domestic demand, according to official statistics.

The brewers are not the only ones hit by the impact of a trade war. Usbased Coca-cola has also said that it would have to raise prices to account for higher metals and freight costs.