Kansas City beer businesses say there's ‘a big concern' over Trump's tariffs

Yahoo

05-04-2025

KANSAS CITY, Mo. — The worldwide business market is in a wait-and-see mode.
On Friday morning, China responded to new U.S. tariffs with economic demands of their own. European countries were already banding together, pushing back against new tariffs introduced by U.S. President Donald Trump.
Business leaders in the Kansas City metro are also feeling nervous about potential cost hikes. The beer business and those who buy beer at retail could feel the strain of these tariffs placed on imported goods.
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Managers at KC Bier Co., which built its brewery at W. 79th and Wornall Road eleven years ago, makes its popular beers in house, but ingredients often come from overseas.
Steve Holle, founder and operating manager at KC Bier Co., said 40% of the brewery's beers are sold in cans, which are packaged in paper and cardboard at retail. Those goods, as well as German hops and malt, come from overseas and fall under tariff restrictions put in place by the Trump White House.
'I would say there's a big concern,' Holle said on Friday afternoon.
Holle said he's waiting to talk with his suppliers about the cost of raw goods, and he hopes he doesn't need to raise prices for his consumers.
'I think having those ingredients is important to the brand and the type of beer we're making, so yes, I think it's a very big deal for us, and I don't think it's something we can readily change and not lose the brand identity we have,' Holle continued.
Metro business analysts are watching the Dow Jones Industrial Average react to the tariffs with sudden drops this week.
Dr. Tony Tocco, who teaches at Rockhurst University's Helzberg School of Management, believes the overall impact in the Kansas City metro may be low since there aren't many Fortune 500 companies still based here.
'I think this is going to be short-term. It's going to be short-term pain for long-term gain,' Dr. Tocco said.
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Dr. Tocco believes that if this goes on for long, a worldwide recession isn't out of the question, but he doesn't believe this trade war will last more than three months.
'My bet is this gets solved pretty damn quickly. I truly believe that. I really do believe that. I think there will be a lot of people coming in and negotiating, and there will be a settlement on both sides,' Dr. Tocco said.
Holle is cautiously optimistic, but he seems to agree with the professor's optimistic outlook. Holle said he'll crack the books and look for ways to cut costs, but he doesn't believe beer prices will change for a few months, if they do at all.
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