Tempe, Arizona Faces Brewing Storm Over Tariffs

Categories: Arizona Business NewsArizona State News

Local breweries in Tempe are facing tough times due to new tariffs impacting essential supplies.

News Summary

The local brewing industry in Tempe, Arizona is grappling with new tariffs that threaten to increase prices and impact the economy. Governor Katie Hobbs and Congressman Greg Stanton have voiced concerns over a 10% tariff imposed on imports, affecting crucial materials for breweries. With rising costs, local businesses fear a detrimental effect on profits and hiring. The broader implications of these tariffs could strain community ties and economic growth, particularly as seasonal visitors from Canada may reconsider their investments in the state.

Tempe, Arizona: A Brewing Storm Over Tariffs

In the heart of Tempe, Arizona, the vibrant atmosphere at Hundred Mile Brewing Company is not just filled with the clinking of glasses and the laughter of friends; it’s also clouded by the uncertainty of new tariffs imposed by the government. Recently, Arizona’s Governor Katie Hobbs and Congressman Greg Stanton took a moment to dive into the brewing troubles faced by local breweries and other small businesses as they visit this beloved establishment.

What’s Brewing with Tariffs?

Governor Hobbs made it clear that there’s something intrinsically American about brewing beer—it’s a tradition that embodies the spirit of creativity and craftsmanship. However, this beloved industry is now facing a bit of a wrench in the works thanks to tariffs that have been recently put into place. On April 2, 2025, President Donald Trump signed an executive order issuing a 10% tariff on all imports from various countries, which impacts crucial materials businesses need to thrive.

Though a few tariffs on specific countries, such as China, were not postponed, many others have been given a breather, holding off the costs for 90 days while negotiations continue. But for Arizona’s brewing community, this 10% tariff could mean tough times ahead.

Crunching the Numbers

Breweries like Hundred Mile and OHSO Brewery + Distillery have already begun feeling the pressure. Business owners report that as speculation around the cost of essentials, particularly aluminum used for canning, rises, they have no choice but to make price adjustments. For many of these local spots operating with thin profit margins, passing on these costs inevitably falls on the shoulders of consumers. This harsh reality could mean increases in drink prices or even cutting back on staff, which could tarnish the community vibe these places work so hard to maintain.

Worrying Trends Ahead

Governor Hobbs expressed concerns that the uncertainty created by these tariffs might hold back future investments and hiring across Arizona’s business landscape. With households already feeling the pinch from rising costs before the tariffs even took effect, there’s a growing skepticism around the possibility of economic growth in these trying times.

Impact on Arizona’s Economy

But it’s not just the breweries that could get hit hard; the effects of the tariffs are rippling out across various sectors. Local businesses catering to the snowbird industry—those seasonal visitors who flock to Arizona from Canada—are facing shifts as well. Reports from real estate agents indicate an uptick in Canadian listings, as clients reevaluate their investments amid the politically charged atmosphere. It’s noted that these Canadian visitors significantly contribute around $1.4 billion to Arizona’s economy, casting a shadow of doubt over future spending if their presence diminishes.

The Bigger Picture

As the government grapples with tariff negotiations, the ties between American and Canadian citizens could potentially strain, a situation that many locals worry could lead to long-term damage. Small business owners, like Erica Campbell, are sharing their anxieties—harboring fears about rising costs eating into their bottom lines, and ultimately affecting what consumers pay at the register. It’s a challenging climate where economic growth feels less promising by the day.

A Community in the Balance

As Tempe’s breweries brew up their signature frosty pints, they are also brewing a pot full of concerns about the future. The universal 10% tariff on imports is currently impacting everyone, and higher reciprocal tariffs threaten to send shockwaves not only through small businesses but also across the state’s economy. As communities come together to support local breweries, the unfolding narrative around tariffs reminds us of the intricate connections between our businesses and daily lives. For now, it’s a waiting game, as all eyes watch to see how things unfold in the coming months.