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Sapporo Shifts Beer Production to US to Avoid Tariffs
Confirmed
In Short: Japanese brewer Sapporo is moving some of its beer production from Canada to the US to mitigate rising costs due to new tariffs.
To mitigate rising costs, the Japanese brewer Sapporo is considering adding production capacity on the US West Coast, according to reports.
Sapporo has been building its presence in the US for years, with its flagship Sapporo brand being the country's best-selling Asian beer brand.
In July, the US announced new tariffs on dozens of trading partners, including Canada, raising costs for businesses that rely on cross-border supply chains.
Sapporo plans to shift production of its non-alcoholic beer, currently made in Canada for US customers, to the US by the first half of 2027, as part of its strategy to expand overseas and boost profits.
What's still developing
- The move highlights how some companies are reconsidering where they make goods as trade barriers increase the cost of serving customers from overseas.
- The move follows the introduction of a 50% tariff on beer imported from Canada.
- For companies shipping beer across the border, that means significantly higher costs.
- Chief strategy officer Rieko Shofu described tariffs as "something out of our control," telling Bloomberg that the beer giant would "move ahead with local production." Sapporo did not immediately respond to the BBC's request for comment.
- The US is one of Sapporo's most important overseas markets, and any shift south of the border will directly affect operations at its Canadian subsidiary, Sleeman Breweries.
- Rep. Tom Barrett, R-Mich., discusses Canada launching retaliatory tariffs against the U.S. and the potential for President Donald Trump to reach a deal with Canada on 'The Bottom Line.' Trump issued a warning late last week that Canada making Trump "the enemy" would prove dangerous.
- Canada's retaliatory tariffs kicked in just after midnight on roughly $20 billion worth of U.S.
- Canada's tariffs put 15%, 25% or 50% duty across hundreds of American products — including steel, aluminum, dairy items like milk and cheese, golf clubs, appliances, clothing and farm equipment.