Even “Reduced” Tariff Rates Are Still Too Much for Small Breweries

For a small brewery and café in Bellingham, Washington, recent trade “deals” and reduced tariff rates haven’t brought relief. They’ve simply locked in higher costs that are still difficult — and in some cases impossible — for a small business to absorb.

The brewery produces about 500 barrels a year and imports malt directly from a German maltster. Even at a 15% tariff, combined with a 10% decline in the value of the U.S. dollar, the cost of malt has risen sharply compared to where it would be without these policies.

As they explained:

“The 15% tariff and the 10% loss of value of the USD has increased our malt prices significantly from what they would be without this.”

And malt isn’t the only input affected. The brewery has also seen a 30% increase in the cost of glass bottles from Canada, along with rising prices for European hops and other ingredients used in both brewing and café operations.

For a business operating on thin margins, these layered cost increases add up quickly. Even when tariffs are lowered from earlier peaks, they still function as a permanent tax — one that small breweries can’t easily pass on to customers without risking demand.

This story underscores an important point often missed in trade discussions: “reduced” tariffs aren’t the same as affordable tariffs, especially for small food and beverage businesses that rely on specialized, imported inputs.

📢 If your small business has been affected by tariffs, consider adding your experience by signing on to our open letter. These voices help show how even moderated trade measures continue to strain small employers across the country.