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“Not to worry — The Late show is proud to announce our new sponsor, ‘Sackweiser,’” Colbert quipped while holding a beer-filled sandwich bag.

While Canadian consumers can feel good about choosing Canadian beer over U.S. imports, an industry group is warning beer drinkers north of the border they could still face higher costs due to Trump’s tariffs on Canadian aluminum.

Aluminum beer cans are processed in the U.S.

In a recent , Beer Canada notes most aluminum cans Canadian brewers use start with primary aluminum made in Canada. But the material typically crosses the Canada-U.S. border twice as it’s processed into cans.

While most of the beer Canadians consume is brewed in Canada, most beer cans, including 473-ml “tall boys,” are manufactured in the U.S. with Canadian aluminum.

Industry insiders say consumers could soon see higher prices for domestic brews as a result of U.S. tariffs and rising federal excise taxes.

Cost pressures for domestic brewers

Beer Canada is an industry organization that represents producers of more than 90 per cent of all domestic beer sold in Canada, accounting for $14 billion in economic activity.

The group calls U.S. tariffs against Canadian aluminum “unjustified” and warns consumers their favourite beer is likely to get more expensive.

An increase in the federal excise tax on April 1 will also make beer costlier for consumers.

How much could costs rise?

Karine Cousineau, vice-president of strategic communications for Beer Canada, said it’s difficult to predict how individual brewers will respond to the aluminum tariffs across individual brand portfolios. Brewers are also facing the challenges of a softer alcoholic beverage market and an ongoing affordability crisis for many Canadians families, Cousineau added.

“The direct impact of a 25 per cent U.S. import tariff on Canadian primary aluminum is estimated at about $165 million across the $3.7 billion in aluminum cans Canadian brewers use annually,” Cousineau said in an email to Metroland, adding that on a per-can basis, the added cost is about four or five cents.

An equivalent Canadian 25 per cent retaliatory tariff on U.S. aluminum can sheets or finished cans would double the cost impact to $330 million, Cousineau noted.

Brewers are also concerned about a two per cent increase in the federal excise tax on beer, wine and spirits on April 1. While the increase has been lowered from an initially planned levy hike of , Cousineau said next month’s increase will still stack a further $12.8 million in costs onto Canadian beer, plus applicable sales taxes.

Taxes amount to 46% of purchase price

“This increase is on top of total beer taxes in Canada that already typically represent 46 per cent of the retail price consumers pay, the highest beer tax rate in all of the G7 countries,” said Cousineau.

“One can’t add nearly $350 million in new costs to Canadian brewers and not expect some significant negative repercussions in terms of jobs, investment and growth,” she added.

The new cost pressures come at a time when brewers have not fully passed on recent operational cost increases, said Cousineau.

“Both our retail and hospitality customers have reached a point where they do not feel they can readily pay more.”

Calls to action

Beer Canada has called for provincial and federal governments to end automatic annual tax hikes on beer.

The industry group is also pushing for tax relief for brewers, the hospitality sector and beer consumers, along with protections for Canadian beer industry jobs.