Thom Cheston, owner of Right Proper Brewing in Washington, D.C., is feeling the financial impact of President Trump’s 25% tariffs on steel and aluminum. The increased costs of aluminum cans to package his beer could potentially cost his business an additional $40,000, the equivalent of hiring a new employee. Despite the potential increase in costs, Cheston is hesitant to raise prices due to competition from larger breweries who may not raise their prices. Craft breweries like Right Proper have shifted to cans over bottles, making the impact of the tariffs more significant. Right Proper sources their aluminum cans from Canada, making them vulnerable to the increased costs. Larger companies like Molson Coors, who source domestically, would not be as affected by the tariffs.
Cheston emphasizes that every cost increase, even 50 cents, can influence a customer’s decision when choosing beer from a grocery shelf. The potential increase in costs could impact Right Proper’s ability to grow and expand, such as opening a third location. The uncertainty of the trade war and its impeding effects are causing anxiety for small business owners across the U.S. as they try to navigate and absorb the escalating costs. Ultimately, Cheston hopes to weather the storm and continue to provide quality beer to his customers despite the challenging economic conditions.
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