Today marks National Beer Day, but many beer enthusiasts are contemplating the implications of new tariffs on their favorite brews. Recent changes in trade policies have led to a significant increase in the cost of beer, especially those packaged in aluminum cans, which make up the majority of beer sales in the U.S.
President Trump initiated a global trade conflict by imposing a 25% tariff on imported canned beer and empty aluminum cans. This decision follows a broader announcement of 10% tariffs on various imports, prompting retaliatory tariffs from other countries as well. The tariffs are expected to substantially raise prices for popular beer brands, particularly those sourced from Mexico, Canada, and China.
According to the Beer Institute, a remarkable 64.1% of beer distribution in 2023 was through aluminum cans, contrasting with just 26.9% from glass bottles. This has significant implications for breweries reliant on imported cans, including Constellation Brands, which imports most of its beer, such as Corona and Modelo. European brands like Guinness and Heineken are also affected.
While the tariffs do not apply directly to the beer itself, the cost of importing aluminum cans will be impacted, causing a ripple effect on pricing. The U.S. Census Bureau noted that beer imports exceeded $7.5 billion in 2024, with Mexico contributing over $6.3 billion, followed by the Netherlands and Ireland.
As beer lovers celebrate today, they must be aware of the potential for increased prices due to these new trade barriers.
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