By Anna Gustafson for the Pennsylvania Independent.
Broadcast version by Danielle Smith for Keystone State News Connection reporting for the Pennsylvania Independent-Public News Service Collaboration

It was the second week of April, and Beau Baden didn’t have time to think about tariffs. 

While President Donald Trump’s chaotic on-again, off-again rollout of tariffs on imported goods were indeed weighing on Baden, he was busy getting ready for the fourth anniversary of Sherman Street Beer Company, the Allentown brewery he opened in 2021 after dreaming about owning his own place for decades.

Baden says he expects he’ll likely have to pay more for the hops he imports from all over the world and the aluminum cans that are essential to his business as a result of Trump’s planned tariffs, which are taxes on imported goods and services paid to the federal government by the businesses or consumers that are importing them.

But in the days leading up to the anniversary celebration, he was thinking more about the upcoming event’s beer, food and Mrs. Roper Romp, when community members don their best curly red wigs in honor of the beloved minor character from the television sitcom “Three’s Company.”

“When all this is happening, we’re getting ready for a fourth anniversary,” Baden said in an interview on April 15, following the celebration. “I’m stressing about that more than I’m worried about anything else. We’ve got a lot of people that are going to be coming into our building, coming to our place. We want to make sure things are right and people have a good time and everything like that.” 

It was indeed a good time, Baden said. There were Mrs. Ropers galore, and the brewery was packed with people drinking newly released beers, having a pig roast, and eating Maryland crab pretzels. 

Then reality hit. 

“I wasn’t that worried. Now, today, as 20,000 cans showed up, I’m worried about that bill,” Baden said. 

He has yet to see the invoice, but Baden expects there to be an increase after Trump imposed a 25% tariff on all steel and aluminum entering the United States that went into effect on March 12.

It’s not just the cans he’s worried about. Baden, whose brewery employs 10 people, imports hops and malt from countries around the globe, and while he doesn’t currently need brewing equipment, that too would likely come from other countries when he did.

Trump’s rollout of tariffs has left business owners like Baden not only worried about the financial impact of the taxes on imports but often unclear as to what imports will be or are being taxed. 

“I keep up in the mornings and, then, by the afternoon, I’m completely confused that what I heard in the morning is not the same as what’s going on in the afternoon,” Baden said. “It’s all anecdotal right now, but at the end of the day, any cost increase for us is not great. Breweries, like restaurants, you work on slim margins.”

After announcing increased tariff rates for goods from most of the world on April 2, including major trade partners like the European Union and China (as well as islands inhabited by penguins and no humans), Trump ended up temporarily reducing most of those rates after stock markets tanked. He said he planned a 90-day pause on implementing the tariffs originally announced on April 2, a day Trump called “Liberation Day.”

He went on to implement a 10% tariff rate on most imports coming into the U.S., a lower rate than was originally announced for many countries’ goods but one that economists say will still hurt U.S. businesses and consumers.

Trump has also escalated the trade war with China. He increased the tariff rate from 104% to 125% on most goods from China, which retaliated with higher tariffs for U.S. goods. China is the United States’ third-largest export market after Canada and Mexico. The U.S., meanwhile, is China’s top export market.

Economists explain that the increased costs business owners face due to tariffs are often passed on to consumers, who may soon be paying more for a wide range of goods, including coffee and fruit, cars, lumber, and pharmaceuticals. Because the U.S. doesn’t have the infrastructure to immediately, or ever, begin making and distributing many of the items it imports, business leaders and economists warn of impending shortages of goods like generic drugs and electronics. 

While the Trump administration says tariffs will lead to companies moving operations to the U.S. and an increase in the number of manufacturing jobs, experts say that isn’t actually the case. A CNBC survey of businesses found that if companies did increase the number of manufacturing jobs in the U.S., they would use automation and not humans in those positions.

Economic pain for Pennsylvania’s breweries

Baden is far from the only brewery owner who’s worried about tariffs. Brewery owners throughout the state say the current and possible future tariffs are causing financial concerns for Pennsylvania’s craft beer industry.

About 530 craft breweries make their home in Pennsylvania, which has the third-highest number of craft breweries in the country, according to 2023 data from the Brewers Association, a trade group. Gov. Josh Shapiro’s administration recently reported that the commonwealth’s ranking has risen and that the state is now the second-largest craft beer producer in the country.

Small-brewery owners facing increased costs for cans and other goods may have to increase the prices of beer they sell to their consumers, business owners told the Pennsylvania Independent. However, following the inflation that stemmed from supply chain disruptions during the early days of the COVID-19 pandemic and with the possibility of a coming economic recession, owners said they’re not sure how much of a price increase consumers will accept, leaving breweries to figure out how much they will potentially be able to absorb in costs.

“We’re going to have to probably eat it for this year, for 2025, and then reevaluate going into 2026, whether it’s talk to our partners, our contract partners, and explain what situation we’re in and what we need to do, how do we become more efficient?” Baden said. “You don’t want to change the product to make an inferior product, so there’s not a lot of wiggle room on that end. We’ll see — are we in a recession or not a recession? We don’t know yet.”

Jeff Fegley, the owner of Brew Works in Bethlehem, said he’s worried about the financial hit tariffs his business could take. Fegley’s is a brewery and restaurant that’s helped to revitalize downtown Bethlehem in the wake of the decline of the steel industry that once dominated the area. Fegley also owns a Brew Works in Allentown.

Fegley said he’s holding out hope that the Trump administration won’t further raise tariff rates. If it does, small businesses like his will suffer, Fegley said. 

“I hope they can get through this because the consumer ultimately is going to pay,” Fegley said. “We can’t absorb it all. So we’ll have to raise prices. And I think right now, the restaurant industry as a whole is seeing kind of flat sales. If these tariffs continue, I can see it declining, restaurants declining in sales because people will be less likely to go out and spend as much as they would if they didn’t have this increase in costs.”

For now, Fegley said, they’re waiting to see what happens at the end of Trump’s 90-day pause on significantly increased tariffs.

Fred Maier, the co-founder and vice president of Susquehanna Brewing Company in Pittston and the president of the Brewers of Pennsylvania, a trade association, also lamented the economic uncertainty. Just last year, he was hopeful that the industry’s finances were finally steadying after a rocky period due to the pandemic. Then the new administration took office.

“2024 was the first year that supply chain was normal,” Maier said. “I knew when I ordered something what it was going to cost me in one month or three months from now. It was wonderful.”

“I kind of stuck my foot in my mouth saying, You know what? Everything’s pretty steady,” Maier continued. “And that was in the beginning of January. I’m like, I’m not seeing anything major this year. And four weeks later, it all started.”


Anna Gustafson wrote this article for the Pennsylvania Independent.


get more stories like this via email

More than 5,000 workers died from traumatic injuries while on the job in 2023, and 135,000 more died from occupational diseases, according to a new report by the AFL-CIO.

Maryland had the fourth lowest number of workplace deaths, with 69 workers dying on the job. But the report also noted that attacks on regulations could worsen the problem in the future.

An executive order by President Donald Trump requires any federal agency to rescind 10 regulations before a new one can be issued.

That includes federal agencies like the Occupational Health and Safety Administration, or OSHA.

Ray Baker, Maryland director of the Baltimore-D.C. Building Trades Council, explained that construction work can be dangerous and federal regulations from agencies like OSHA are necessary for the health and safety of workers on the job site.

"Federal worker protections are vital for all workers, specifically those in the construction trades," said Baker. "The work that we do is so highly skilled and there is such a potential or chance for danger or harm."

The Trump administration has defended its executive order as a way to stop what it calls a "regulatory blitz" from the previous administration, claiming that deregulation will create jobs and stop inflation.

Trump has also fired workers at the National Institute for Occupational Safety and Health, the nation's only worker safety research agency.

In past years, the agency has been tasked with investigating safety concerns at factories and facilities around the country.

Baker said many union contracts offer guarantees on worker safety, but he said he worries that federal oversight of those contracts is weakening.

"If these organizations or institutions are not adequately staffed - if they do not have the resources, the attention, the time, and the money necessary to be able to put in place and enforce mechanisms that keep workers safe," said Baker, "I am very, very concerned what that could mean for a host of workers in the construction industry."

The lives of more than 700,000 workers have been saved due to regulations from the Occupational Health and Safety Act, which created OSHA, according to the report.




get more stories like this via email

Corrections officers and their supporters are rallying in Lansing today, urging lawmakers to stop stalling and act on bills to give them the same pension benefits as state police.

Under the legislation, corrections officers would move from a 401(k)-only plan to a hybrid pension system shared with state police, a step aimed at improving hiring and retention in the Corrections Department.

Byron Osborn, president of the Michigan Corrections Organization, said he questions the integrity of the legislative process and is frustrated the bills passed both chambers with bipartisan support last year but are still being withheld from Gov. Gretchen Whitmer's desk.

"We believe 100% that this was an orchestration of sorts," Osborn contended. "We don't know who orchestrated it, or why. But the fact remains that nobody has offered up any reason as to why these bills still have not been sent to the governor."

Osborn noted the Senate filed a lawsuit against the House for not sending the bills to the governor and they are awaiting a Michigan Court of Appeals date. Meanwhile, Rep. Matt Hall, R-Richland Township, the Speaker of the House, said he is seeking a legal review before advancing bills passed in the previous session.

Osborn emphasized Michigan's corrections system has faced a staffing crisis for almost a decade and his organization has spent years working with lawmakers to fix the retirement plan for their officers. He warned the delay in passing the pension bills is hurting their recruitment efforts.

"We've got a number of our facilities running anywhere from 25% to 35% short, which as you can imagine is causing just a ton of mandatory overtime," Osborn pointed out. "It's causing more and more people to resign and find other jobs because they just can't keep up the pace and it's dangerous."

As of early this year, data showed the Michigan Department of Corrections had more than 2,200 job vacancies, including nearly a thousand corrections officer positions. The staffing shortage drove overtime costs to almost $120 million in fiscal year 2024.


get more stories like this via email

Minnesota labor groups said to keep the state's economy running, they need a more welcoming tone from policymakers. At a rally Tuesday, many members argued it is not what is happening under the Trump administration.

A coalition of unions gathered at the State Capitol as part of the "Hands Off" movement, which has led almost daily demonstrations in cities across the U.S. The events highlight the downsizing of federal agencies and aid since President Donald Trump returned to office.

Shari Wojtowicz, president of the Minnesota State Council of the Communications Workers of America, said it is not only about their members.

"Union rights are under attack but that means workers' rights in general are under attack," Wojtowicz asserted. "We just really wanna make sure that we're highlighting the fact that workers' rights are human rights."

The union pointed to the administration's handling of the National Labor Relations Board. The union said it is worried the board will not have the capacity to help oversee union elections, potentially slowing collective bargaining.

Some White House actions dealing with labor have wound up in the courts. The administration deems its moves necessary for government accountability and efficiency.

The union represents workers who install broadband infrastructure all over the country. State and federal investments are already providing the funding needed to close broadband gaps and Wojtowicz noted the next step is to ensure safe working conditions for crews.

"Companies got money to lay that infrastructure and in some instances, they're hiring subcontractors or contractors of contractors, so there's less oversight," Wojtowicz explained.

She added unions secured new training standards at the state level last year but in this year's legislative session, there have been attempts to roll back some of the language in the law. The unions said it is another reason why wider federal enforcement of labor protections is needed.


get more stories like this via email