MILWAUKEE — Third Space Brewing is one of the local businesses now wondering if they could see rising costs due to a new 25% tariff on aluminum imports.
Trump on Monday signed an order imposing a 25% tariff on all steel and aluminum imports to the United States. The move, aimed at reshaping global trade, could impact businesses in Wisconsin.
At Third Space, stacks of cans fill the brewery—a crucial part of its operations.
Kevin Wright, co-founder and brewmaster, emphasized aluminum's role in their business.
"Almost everything we've ever done has been in cans," Wright said. "From day one, we canned. It’s lighter, easier to pack, and blocks light."
With about a million cans currently in storage, aluminum remains their biggest raw material expense.
"We spend more money a year on aluminum than anything else," Wright said. "Anything impacting price, we pay attention to."
Third Space sources cans from a plant in northern Illinois, part of a supply chain that includes Crown.
"We plan our year based on certain costs," Wright said. "Uncertainty makes it difficult. The last time tariffs were imposed, they lasted just 24 hours. Now, we don’t know what to expect."
Brad Dickmann, chief beer engineer at WilCraft Can, a beverage packaging provider in Oak Creek, said can prices could rise by three to four cents each.
Watch: Local businesses face uncertainty after Trump tariffs on steel, aluminum
"If our costs increase, we’ll have to pass that on," Dickmann said. "We don’t want to, but we can’t lose money on cans."
Despite uncertainties, Third Space doesn’t plan to make changes just yet.
"We understand the impact on customers and our business, but we’ll continue delivering the product they expect," Wright said.
For customers like Graham Gorgas, supporting local businesses takes priority.
"I come here every Monday for the league. And yes, we take beer to go as well," Gorgas said with a smile.
"It’s not their fault prices are increasing. The money stays here. If they go away, we’re the ones affected. It’s our job to help them stay."
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