The ongoing trade dispute between the U.S. and China could have a big negative impact on the craft beer industry.

A near 80 percent tariff on Chinese-made steel kegs were announced by the U.S. Department of Commerce this week.

Chinese kegs are commonly used in the craft beer industry. A brewer Spectrum News spoke with in Rensselaer says this move could make his planned expansion much more difficult.

Roger Savoy, owner of Emporium Farm Brewery, says he purchases quarter kegs. That near 80 percent tariff on a critical piece of beer-making equipment would likely be a heavy lift for craft brewers like Savoy.

“It is going to make things a lot more expensive for us,” Savoy said.

Kegs are usually purchased in pallets of 40 at a cost between $80 and $90 per keg.

“So that will bump that up to about $120 or $160 per keg,” Savoy said of the new tariffs.

He says he has poured his heart into his brewery. He has been serving in his Rensselaer tap room for about six months, and has yet to turn a profit.

“It will just make it more difficult to make a profit and come home with a paycheck at the end of the week. I don’t get a paycheck here. I get beer,” Savoy said.

Along with China, the U.S. Department of Commerce announced tariffs on kegs from Germany and Mexico.

Pennsylvania-based company, “American Keg,” is petitioning the decision. The company says they are the only steel keg manufacturer in the U.S.

“This is going to negatively impact every single brewery in the whole county," Savoy said.

With expansions planned, Savoy knows he will soon need more resources.

It’s a move many fear will stifle the craft beer boom areas such as upstate New York.

Though the local beer scene is known for being resilient, Savoy and others fear this is a cost they will have to pass on to consumers, by raising prices, if they want to survive.

A final decision on the tariffs are expected this fall. If approved by the International Trade Commission, they could be applied before the end of the year.