Trump Slaps 25% Tariff on Canned Beer, Aluminum Cans

The Trump Administration has announced 25% tariffs on all imported canned beer and empty aluminum cans. This new measure is expected to strongly impact the beer industry on both sides of the border, as the United States is the world’s largest importer of Mexican beer.

This new tax results from changes made to the previously announced 25% tariffs on all steel and aluminum exports to the United States, which were unveiled on Feb. 10 and came into effect on March 12. According to the notice published this Wednesday in the US Federal Register, tariffs on these aluminum derived products will take effect starting at 12:01 a.m. on Friday, April 4.

The US Department of Commerce stated that the tariff will apply to malt-based beer as well as empty aluminum cans under 20L. However, no mention was made of imports of the beverage in glass or other packaging materials, according to information from Reuters. According to the US Beer Institute, cans account for under 40% of imported beer, or 38.5% in 2024. Meanwhile, bottles represent 56.4% of beer imports, and the remaining 5.1% is imported in barrels.

Beer is one of the main export products of Mexico’s agri-food industry. According to data from the Mexican Chamber of Beer and Malt, beer contributes 1.5% to the country’s GDP. In 2023, the beverage was the top-selling agri-food export, generating US$6.1 billion in revenue, according to Mexico’s central bank, Banxico. Moreover, between January and February 2024, Mexican beer maintained its global dominance, topping the agri-food export list with a value of US$1.01 billion.

On the other hand, the United States is the largest importer of Mexican beer in the world. In 2024, Mexico held an 84% share of total US beer imports, accounting for US$6.3 billion. The Netherlands ranked second during this period, with beer exports to the United States worth US$683 million, followed by Ireland with US$192 million, Canada with US$73 million, according to data from the US Department of Commerce.

Industry analysts expect the new tariffs on canned beer imports to hit Constellation Brands the hardest. Constellation imports all its beer from Mexico, including brands such as Modelo and Corona. While Corona is best known for being sold in glass bottles, Modelo, currently the bestselling beer in the United States, is most commonly sold in cans. Beer accounted for 82% of Constellation’s total sales in its most recent quarter.

As for aluminum cans, the United States imported US$411 million worth in 2023, making it the world’s fifth-largest importer of this product, according to the Observatory of Economic Complexity (OEC). Its main suppliers were Mexico, which exported cans worth US$169 million that year, followed by Canada with US$55 million, Germany with US$28.3 million, China with US$24.2 million, and France with US$19.3 million.