United States: National Beer Day brings celebrations to numerous consumers while others measure beer price increases because of rising tariff impacts.
Tariffs Cast Shadow
The United States experienced its first global trade conflict since President Donald Trump imposed a minimum of 10% import taxes on every nation Wednesday, followed by trade rejections from other countries, which now reach American beer products, including aluminum cans.
The Trump administration introduced a 25% tax on all foreign beer in cans and aluminum containers last Friday while ignoring beer in glass bottles, according to official news reports.
The Beer Institute reports that aluminum beer cans will represent 64.1% of total beer distribution, while glass bottles will make up 26.9% during 2023, Yahoo Finance reported.
The United States obtains its major supply of aluminum primarily from Canada, China, and Mexico. The 2024 statistics from the Institute demonstrate that imported beer consisted of 40% canned beer.
Constellation Brands faces major losses
News reports show that Constellation Brands will suffer significant losses as their entire beer supply comes from Mexico through brands such as Corona and Modelo, which represent their main selling products.
Customers primarily buy Modelo beers in container cans. Modelo produces 72% of all imported beer together with NA beer and hard cider in addition to FMBs.
The beer brands Guinness and Heineken, along with other well-known European beers, experience direct market impact, Yahoo Finance reported.
Furthermore, as the news reports clarified, the tariff is not intended to apply to the beer itself with a response from a US Commerce Department spokesperson: “Tariffs on imported beer only apply to the value of the aluminum content of the beer can, and not to the beer itself.”
Also added that “Imports of the empty aluminum cans will be tariffed for their full value.”
U.S. beer imports top USD 7.5B
Beer imports reached a value of USD 7.5 billion in 2024, according to US Census Bureau findings, while Mexico maintained the top position with USD 6.3 billion.
The Netherlands came second with USD 683 million, followed by Ireland with USD 192 million and Canada with USD 73 million.