B.C. brewers brace for ‘Armageddon’ as Canada eyes tariff on hops

As part of its retaliation to U.S. tariffs, Canada is considering a 25-per-cent tariff on hops, causing concern for B.C. brewers.

B.C.’s craft brewing industry is urging the federal government not to impose a tariff on American hops, which are an essential ingredient in beer.

On top of the 25-per-cent tariffs Canada has already imposed on $30 billion of American goods, the government is considering 25-per-cent tariffs on an additional $125 billion in imports, including hops.

“Hop-forward beers are the number one brewed and purchased product from small craft breweries,” said Chris Bjerrisgaard, owner of Small Gods Brewing in Sidney.

“(It’s) basically Armageddon for craft brewing.”

Small Gods has four flagship beers, two of which are made with hops grown exclusively in the United States. They’re called proprietary hops, meaning the strains are essentially patented.

“As a result, we can’t pivot to using different Canadian hops or European hops to get out from under the tariff. We are just going to face another major increase in costs,” Bjerrisgaard said.

He said a tariff on hops would hurt more than the tariffs already imposed on aluminum, which are expected to drive up the cost of cans.

“Hops are used in all brews, whereas aluminum cans aren’t necessarily used for every single drop of beer in this province. As a serving vessel, you still have draft beer,” he said.

Hops Connect Canada supplies hops to more than 200 B.C. breweries. The company has been stockpiling hops ever since U.S. President Donald Trump started talking tariffs.

“We quickly identified that as a serious concern in our business, as roughly over 50 per cent of our imports come from the U.S.,” said Will Konantz, general manager for Hops Connect.

“We see us lasting for six, seven months without having to bring in any more American hops.”

The federal government is seeking public input by April 2 on the list of additional goods it’s considering tariffing.

“Canada must stand up to these unjustified tariffs imposed by the U.S.,” a Department of Finance spokesperson said in a statement to CTV News.

“Canada’s countermeasures are intended to pressure the U.S. to remove its tariffs on Canada.”

The B.C. Craft Brewers Guild said it will share its concerns with Ottawa.

“Overall, the cost in the last three years for the brewing industry has gone up by 32 per cent,” said Ken Beattie, executive director for the guild.

“Those costs haven’t been passed along to the consumer. All that means is that we’ve shrunk the margin and people are making less money.”

For months, the guild has been advocating for reduced excise taxes on beer. Beattie is meeting with provincial officials next week to advocate for the reduction, which he said would provide relief amid tariffs and other cost pressures.