When the price of a single aluminum can rises, it’s not just a blip on a spreadsheet—it’s a ripple that spreads through the entire beverage industry. For family-run breweries and major soda brands alike, the recent spike in aluminum tariffs has turned a once-stable supply chain into a source of daily uncertainty.
Suddenly, what used to be a routine order for cans now sparks tough conversations about budgets, packaging choices, and even the future of favorite drinks.
The chain of distribution, from manufacturers to retailers, is feeling the pressure—and the impact is more personal and far-reaching than many realize.
What’s Happening with Aluminum Tariffs?
In June 2025, the U.S. doubled tariffs on imported aluminum from 25% to 50% including imports from Canada—a key supplier for beverage packaging companies. This sudden increase has raised costs sharply for manufacturers relying on aluminum cans, with estimates suggesting aluminum can prices could jump by 5% to 10%, adding an extra penny or two per can.
For large soda and beer companies, these added costs quickly multiply into millions of dollars. For smaller beverage producers, the impact can be much more severe, potentially threatening their survival. As the beverage packaging industry adjusts to these changes, the question remains: how will these higher costs ripple through the supply chain and ultimately affect what ends up in your hand?
The Chain of Distribution Gets Complicated
These aluminum tariffs don’t just hit the can-makers. They send shockwaves through the entire chain of distribution.
Beverage companies, packaging manufacturers, and even retailers are now grappling with higher costs and tough choices. Some, like major soda brands, may shift more products into plastic bottles or explore alternative packaging like cartons or even pouches. But for many, especially those who rely on the portability and freshness of aluminum cans, switching isn’t so simple—or cheap.
Who’s Feeling the Pinch?
- Craft brewers, who already pay more per can, are especially vulnerable. Their thin margins mean even a small increase in packaging costs can force higher prices at the register or even threaten their survival.
- Large beverage companies have more options. They can negotiate better deals, absorb some costs, or simply pass them along to consumers in the form of slightly higher prices5.
- Manufacturers of alternative packaging—glass, plastic, or fiber-based—see opportunity, but switching supply chains isn’t easy or immediate.
Market Adaptation and What’s Next
Not all news is bad. The beverage packaging industry is looking at ways to adapt. There’s renewed interest in boosting recycling rates, since recycled aluminum isn’t subject to tariffs and already makes up about 71% of the average beverage can in the U.S.
Some companies are experimenting with new materials, from bioplastics to paper-based cans, hoping to future-proof their packaging against further tariff shocks.
But uncertainty still remains. Many companies are holding off on big changes, wary of making costly moves if trade policies shift again. The chain of distribution remains in flux, with every link—from raw material suppliers to the end consumer—watching and waiting.
In this environment, ERP (Enterprise Resource Planning) systems are becoming increasingly valuable. By providing real-time visibility into inventory, procurement, and production costs, ERP platforms help beverage companies quickly assess the impact of tariff changes and adapt their sourcing or pricing strategies.
With integrated data across the entire chain of distribution, these systems enable manufacturers to optimize operations and make informed decisions—turning uncertainty into an opportunity for smarter, more agile business management.
Aluminum tariffs are a real-world disruptor for the entire chain of distribution. Whether you’re a craft brewer, a multinational soda giant, or simply someone who enjoys a cold drink on a hot day, these changes are reshaping what ends up in your hand—and how much you pay for it!
