One needs a scorecard to keep up with the Trump Tariffs.
Mexico was exempt from the tariffs announced on “Day of Liberation”, April 2nd.
However, that didn’t apply to the automotive tariffs which do affect Mexico.
On March 12th, Trump announced tariffs on steel and aluminum which also affect Mexico.
However, on April 2nd, the U.S. Department of Commerce released an addition to the aluminum tariffs which affects Mexican beer (cerveza in Spanish).
Mexico is the biggest beer exporter to the U.S. by far. In 2024, the U.S. imported more than 7.5 billion dollars worth of beer, and 6.3 billion dollars worth of the beverage was from Mexico. In a distant second place was the Netherlands ($683 million), followed by Ireland ($192 million) and Canada ($73 million).
The Department of Commerce document “revises Annex 1 to add two additional aluminum derivative products: beer and empty aluminum cans.” Elsewhere it’s written thusly:
“(1) beer; and
(2) empty aluminum cans”
The tariff takes effect “on or after 12:01 a.m. Eastern Time on April 4, 2025.” It’s a 25% tariff.
OK, so “empty aluminum cans” fall under the heading of aluminum imports. But what about “beer”? The beverage itself is not an aluminum derivative.
So would “beer and empty aluminum cans” mean “aluminum cans full of beer and empty aluminum cans”? That would indicate that beer (from Mexico or anywhere) imported in a glass container wouldn’t be subject to the tariffs. Or does it simply mean “beer” in any container which for some reason would be included under the aluminum tariff?
According to CNBC it is only referring to beer in aluminum cans.
From CNBC: “For years, canned beer has been gaining market share against its bottled counterpart. Brewers can produce and transport cans more easily than glass bottles, which are heavier, leading to cheaper prices on canned beer for consumers.”
And, “Industry analysts expect the tariffs on canned beer imports to weigh most heavily on Constellation Brands. Constellation imports all of its beer from Mexico, including Modelo and Corona; beer accounted for 82% of the company’s sales in its most recent qurater. While Corona is best known for coming in glass bottles, Modelo — the bestselling beer in the U.S. — most commonly comes in cans.”
On the other hand, according to Reuters it means beer in any container: “The notice revising Trump’s prior aluminum tariff changes lists only the tariff code for beer made from malt. It makes no mention of a subordinate code for beer imports in glass containers.”
The Brewers Association website reprinted an article from INSIGHTS Express by Beer Marketer’s Insights. Here’s what it said: “Today the Trump Administration said it’s imposing a 25% tariff on all canned imported beer and empty aluminum cans, not just those from Mexico and Canada, per a Federal Register notice from the U.S. Department of Commerce filed hours before the President’s announcements. This document updated Administration’s initial Feb 10 notice on aluminum tariffs and is slated to go into effect on Friday, Apr 4 ‘effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption.’ ”
And, “In the updated notice, both ‘beer’ and ’empty aluminum cans’ were added to a list of derivative products subject to sweeping 25% aluminum tariffs that went into effect last month. But it lists only the tariff code for beer made from malt and ‘makes no mention of a subordinate code for beer imports in glass containers,’ Reuters points out. Any way you slice it, the tariffs will mark a big extra expense for imports and a competitive shift in favor of beer brewed in U.S.”
Why would beer itself be considered an aluminum product? Or was that just a mistake? Or is there some other reason for it?