How tariffs reshape your pricing stack.

Tariffs are one of the most disruptive — and least understood — forces in beverage pricing. Unlike excise taxes, which are relatively stable and predictable, tariffs can shift overnight based on trade policy, creating sudden cost shocks that ripple through every tier of the distribution chain. In 2025–2026, the beverage industry is experiencing exactly this: a wave of new and increased tariffs on aluminum, glass, and imported finished goods that is forcing brands to rethink their entire pricing architecture.

What are beverage tariffs?

A tariff is a tax imposed by a government on goods imported from another country. For the beverage industry, tariffs come in two primary forms: material tariffs on the raw inputs used to make and package beverages, and product tariffs on finished beverages imported from foreign producers.

It is critical to distinguish tariffs from excise taxes. Excise taxes are levied on domestic production and imports alike — every barrel of beer brewed in the U.S. or imported pays a federal excise tax. Tariffs, by contrast, apply only to imported goods and are designed as trade policy tools. Both affect your cost structure, but they hit at different points and are managed by different agencies.

The 2025–2026 tariff landscape

The current tariff environment is particularly challenging for beverage producers. Key developments include:

• 25% tariff on aluminum imports — Originally imposed under Section 232 and expanded in 2025, this tariff affects aluminum sheet, coil, and slugs used for can manufacturing. Even domestically produced cans are affected because U.S. aluminum prices have risen to match the tariff-inflated import price.
• 10% baseline tariff on most imports — A broad tariff floor that affects everything from imported glass bottles to finished beverages not covered by specific trade agreements.
• Category-specific duties — Wines from certain EU countries, spirits from specific origins, and specialty ingredients face additional targeted tariffs that fluctuate with trade negotiations.

The net effect is that virtually every beverage producer is paying more for materials, and every importer is paying more to bring product into the U.S. — whether or not they realize the full extent of the impact.

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How tariffs affect landed cost

The most insidious thing about tariffs is that they compound. A tariff on aluminum increases your can cost, which increases your COGS, which increases the FOB you need to charge, which gets multiplied by distributor and retailer margins. A $0.03 increase per can becomes a $0.15–$0.25 increase at shelf.

Here is how a 25% aluminum tariff flows through the pricing stack for a typical 6×4 case of canned seltzer (24 cans):

Cost Component	Before Tariff	After 25% Aluminum Tariff	Impact
Can cost (per unit)	$0.10	$0.13	+$0.03
Can cost (24-ct case)	$2.40	$3.12	+$0.72
FOB per case	$80.00	$80.72	+$0.72
Distributor sell-in (30% margin)	$114.29	$115.31	+$1.03
Shelf price per 4-pack (35% margin)	$29.30	$29.57	+$0.27

A three-cent increase per can becomes a twenty-seven-cent increase per 4-pack at shelf. For a brand selling 50,000 cases annually, the tariff represents $36,000 in additional cost that must be absorbed, passed through, or mitigated.

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Import duties and HS codes

If you import finished beverages into the United States, your tariff exposure goes beyond materials. Every product entering the country is classified under a Harmonized System (HS) code, and the duty rate is determined by that classification. Getting your HS code right is essential — the wrong classification can mean overpaying by thousands of dollars per shipment, or underpaying and facing penalties.

HS Chapter	Category	Typical Duty Rate
22.03	Beer and malt beverages	$0.01–$0.02 per liter
22.04	Wine (grape-based)	$0.05–$0.63 per liter (varies by alcohol content)
22.05	Vermouth and fortified wines	$0.04–$0.26 per liter
22.06	Other fermented beverages (cider, sake, mead)	$0.01–$0.04 per liter
22.08	Spirits and liqueurs	Free–$2.35 per proof liter (varies by origin)

These base duty rates may be supplemented by additional tariffs depending on the country of origin, current trade agreements, and any retaliatory or protective tariffs in effect. A Mexican tequila, a Scottish whisky, and an Australian wine may all face different total duty loads despite similar retail price points.

Working with a customs broker

For brands importing more than occasional shipments, a licensed customs broker is not optional — it is essential. A good broker ensures correct HS classification, manages duty drawback opportunities (refunds on re-exported goods), and keeps you compliant with changing tariff schedules. Budget $150–$300 per shipment for brokerage fees, which is trivial compared to the cost of misclassification.

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Pricing strategies for tariff environments

When tariffs increase your costs, you have three fundamental options. The right choice depends on your competitive position, margin structure, and how long you expect the tariff to remain in place.

Strategy	How It Works	Best When	Risk
Full pass-through	Increase FOB by the full tariff cost	Strong brand, inelastic demand, competitors also raising	Volume loss if competitors absorb
Full absorption	Absorb all tariff costs, hold FOB steady	Highly competitive market, new brand building velocity	Margin erosion, unsustainable long-term
Shared absorption	Split the increase with distribution partners	Established relationships, temporary tariff expected	Complex negotiation, partner fatigue

Timing your price increase

If you decide to pass through tariff costs, timing matters. The best windows for price increases in the beverage industry are January (new year, new budgets), just before peak season (when demand is strongest and retailers are less resistant), and when competitors move first (giving you cover). Avoid raising prices during slow seasons when distributors and retailers are already under volume pressure.

Consider also whether the tariff is likely to be permanent or temporary. If trade negotiations suggest the tariff may be reversed within 6–12 months, absorbing the cost short-term may be wiser than raising FOB and then having to lower it — price decreases are operationally difficult and signal instability to partners. For more on FOB pricing strategy, see our dedicated guide.

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Protecting margins during tariff volatility

Beyond pricing strategy, there are operational moves you can make to reduce your tariff exposure and protect margins regardless of what trade policy does next.

Diversify your supply chain

If you source aluminum cans from a single supplier who imports sheet from a tariff-affected country, you are maximally exposed. Qualifying a second or third can supplier — ideally one using domestically sourced aluminum — gives you negotiating leverage and a fallback. The same logic applies to glass, closures, and specialty ingredients.

Consider packaging format changes

The 25% aluminum tariff has made the economic case for alternative packaging stronger than ever. Brands that were marginal on the can-vs-glass decision may find that glass bottles, PET plastic, or even Tetra Pak cartons now offer meaningful cost advantages. Run the numbers per unit, per case, and per pallet to understand the full landed cost impact before switching.

Lock in forward contracts

If your can supplier or co-packer offers fixed-price contracts for 6–12 months, consider locking in current pricing before anticipated tariff increases take effect. You will pay a small premium for price certainty, but that premium is insurance against a much larger cost shock. This is especially valuable when tariff policy is uncertain and markets are pricing in potential increases.

Model multiple scenarios

The most resilient brands model their pricing stack under at least three tariff scenarios: current rates, a moderate increase (e.g., tariffs go up 10%), and a worst case (e.g., tariffs double). This scenario planning lets you identify your break-even points and decide in advance at what threshold you will raise prices, switch suppliers, or change packaging. Alculator's calculator makes it easy to model these scenarios side by side.