Canadian brewer buys local grain, Chinese cans due to US tariffs

By Matt McKnight

PORT COQUITLAM, British Columbia (Reuters) - Phil Smith is going to buy more Canadian grain and Chinese cans as he, like millions of Canadians, responds to the U.S. tariffs imposed on his country.

The Port Coquitlam, British Columbia, brewer said he can't get the cans he needs from Canada, because even though it is an aluminum mining powerhouse, it doesn't make finished aluminum products like rolled aluminum or finished cans, but he doesn't want to buy American cans right now.

"In this case, we'll just shift to the Chinese market," said Smith as he showed his facilities, where his Tinhouse Brewing Company makes Higher Knoll Double Hazy, Handyman Pale Ale and other beer.

That won't cost him, since Chinese cans cost about a penny less each, but it's one of many small losses to U.S. companies as Canadians react with upset and anger to the tariffs and some of the statements coming out of the White House.

Canadian provinces have pulled American wine from liquor stores, while some Canadians cancel trips to the United States and buy more Canadian products.

Before U.S. President Donald Trump started threatening tariffs, the brewery used approximately one-third U.S., one-third European and one-third Canadian grains. But now they're using 80% Canadian and 20% European grains, Smith said.

Tinhouse has had "a lot" of American customers come into its taphouse over the years, but Smith expects some of that to now be lost. He's counting on the buy-local and buy-Canadian upsurge among consumers to fill in any losses.

"If it's made up for by locals staying local and buying local, then maybe it will net out," said Smith. "I suspect in the end, all of this is going to be a net loss for everybody: small business, big business and the consumer."

(Reporting by Matt McKnight; Writing by Ed White; Editing by Nick Zieminski)

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