Colorado breweries fret about tariffs amid trade war

Driving the news: U.S. Sen. John Hickenlooper, a former Wynkoop Brewing owner, is raising awareness about the tariffs' potential to hike the price of ingredients, equipment and packaging.

• "Tariffs cramp businesses and provide a level of uncertainty that is almost untenable," Hickenlooper said during a visit earlier this week to Denver's 4 Noses Brewing, where he sipped a beer fresh from the canning line and listened to local business owners talk about how the tariffs are hurting their businesses.

State of play: The current tariffs on aluminum are the most pressing issue for craft brewers, Watson says. Smaller breweries are the most likely to get pinched because of their scale.

• The Chinese tariffs on steel and aluminum are taking a toll, particularly for startup breweries.
• The potential for Canadian tariffs will add to the pain. About 40% of the barley used by craft brewers comes from our northern neighbor.

Zoom in: The uncertainty is what troubles Tommy Bibliowicz, co-owner of 4 Noses Brewing, which just celebrated 11 years in business. So far, he's not seen direct tariff impacts but is bracing for them down the road.

• "We really are just waiting — waiting to see what's going on," he lamented at his Denver taproom. "Clarity is our biggest problem."

Between the lines: For brewers, the next question is whether to pass along the additional costs to consumers. It is a tough one. Bibliowicz says he won't do it — at least for now — because he doesn't want to hurt sales.