In a sweeping escalation of trade protectionism, US President Donald Trump has announced the imposition of a 25% tariff on all imported canned beer and empty aluminum cans, effective Friday, April 4, 2025. The move, part of a broader package of trade restrictions, was formalized through a U.S. Department of Commerce notice just hours before Trump's official declaration in the Rose Garden.
While initially focused on aluminum, the latest tariffs now include both canned beer and empty aluminum cans as derivative products under the existing 25% aluminum import duties. This follows the administration’s February 10 update on aluminum tariffs, and marks an aggressive step in Trump's second-term trade strategy.
Although the original regulation was intended to apply only to beer in aluminum packaging, the new tariff must be applied to all imported beer — including that in glass bottles or other types of packaging. The reason is that the referenced tariff code generally applies to malt-based beer, as the Reuters pointed out in a statement.
According to U.S. Department of Commerce data published by the Beer Institute, aluminum cans accounted for 64.1% of U.S. beer packaging in 2023, compared to 26.9% for glass bottles. Imported beer totaled 41.81 million barrels, or approximately 49.06 million hectoliters, with 56.4% in bottles, 38.5% in cans, and 5.1% as draft beer.
The tariffs are expected to impact the U.S. beverage market significantly, particularly Constellation Brands, which imports 100% of its beer from Mexico. The company's best-selling Modelo brand, primarily sold in cans, and Corona, though mostly bottled, make up 82% of Constellation’s sales. The company’s stock has dropped 22% since Trump’s re-election and fell further on the tariff announcement.
The broader economic impact will also extend beyond Mexico, which exported beer worth USD 6.3 billion to the U.S. last year. Other major beer-exporting nations to the U.S. include the Netherlands (USD 683 million), Ireland (USD 192 million), and Canada (USD 73 million). Global players like Heineken and Diageo are now scrambling to mitigate supply disruptions and cost increases.
This tariff decision comes alongside an even more extensive set of measures unveiled during Trump’s official declaration in the Rose Garden later that day. These include a 10% baseline tariff on nearly all imports and variable tariffs depending on the country of origin. The tariff rates include 46% for Vietnam, 34% for China, 20% for the European Union, and 10% for Brazil and the United Kingdom, just to name a few. It remains uncertain whether these will be added on top of the previously announced aluminum tariffs or how they will apply to bottled and draft beer.
The US President justified the policy with accusations of economic unfairness, claiming foreign nations impose higher import duties on U.S. goods than vice versa. For the EU, the retaliation may not be far behind. As reported by several media, the bloc is now considering invoking its Anti-Coercion Instrument (ACI), a powerful mechanism that could limit or stop trade with the U.S. in response to what the EU sees as economic blackmail.
While Trump declared April 2 as "Liberation Day" for American industry, the international response paints a picture of mounting tensions. The European Commission and trade officials are weighing countermeasures that could include reciprocal tariffs, exclusions of U.S. firms from public tenders, and potential embargoes. Such actions may further strain global economic ties and risk escalating into a full-scale trade war, with beer and beverage industries caught in the crossfire.
For U.S. consumers and businesses alike, the tariffs could mean higher prices and tightened supply chains, particularly for aluminum-intensive goods like canned beverages. As Trump pursues his "America First" agenda through protectionist policy, both domestic brewers and importers brace for a turbulent market realignment.
