U.S. tariffs are leaving a bitter taste in the mouths of Belgian beer producers. Exports to the United States are now subject to a 15 percent duty and producers say additional export taxes on aluminum cans have dealt another blow.

The Belgian capital of Brussels recently celebrated its 25th annual beer festival. More than 570 beers crafted by 57 Belgian brewers were exhibited in Brussels' historic Grand Place. But these U.S. duties are providing beer makers with little reason for cheers.

"Of course there will come price increases to be affordable still as a brewery to export to the United States. But then it's to be creative and see to which price point a consumer of the United States will buy the Belgian beer, said Michiel Clyncke, Co-CEO of the Kasteel Brewery Vanhonsebrouck, speaking to CGTN at the festival.

In 2024 alone, nearly four billion dollars worth of European beer flowed into the U.S. But it's not just tariffs that are giving Belgian brewers a headache. Data suggests that domestic demand in Belgium has lost its fizz.

According to the Belgian Brewers Association, beer consumption fell two percent last year and is down nearly 20 percent over the past decade. Increased competition and more people drinking in moderation are among the reasons why.

"You see that the offer has been expanding exponentially so next to beer you have now a lot of aperitifs, cocktails, wine, spirits. So the choice and the offer has been really booming," said Krishan Maudgal, CEO of the Belgian Brewers' Association

But producers are confident that the buzz for beer remains. The Brussels Beer Project believes the trend today is for quality over quantity, with a growing thirst for alcohol-free offerings.

"We already sell one beer out of three alcohol-free which is probably the biggest ratio for Belgian breweries," declared Sébastien Morvan, Co-founder of the Brussels Beer Project. "That's something we are very proud of and that's something we want to keep working on."

Having shifted focus to the European market after the Covid-19 pandemic, Morvan says that the Brussels Beer Project is largely shielded from the impact of U.S. duties.

But he fears that U.S. duties could force more Belgian brewers to focus their attention increasingly on the European market.

Faced with a turbulent trade environment and sluggish domestic demand, brewers say zero percent beer and zero percent duties could be key ingredients to keep sales flowing.