Updated
Updated · Fox News · Jul 19
Teamsters Urge 75% Tariffs on Mexican Beer as U.S. Brewery Use Falls to 65%
Updated
Updated · Fox News · Jul 19

Teamsters Urge 75% Tariffs on Mexican Beer as U.S. Brewery Use Falls to 65%

1 articles · Updated · Fox News · Jul 19

Summary

  • A Teamsters filing to the U.S. Trade Representative asks the Trump administration to impose steep tariffs on Mexican beer imports, arguing brands such as Modelo could be brewed in the United States instead.
  • The union says Mexican beer production has jumped 85% since 2014 and about 80% of Mexico's beer exports go to the U.S., helped by tax incentives, lower labor costs and export-focused industrial policy.
  • U.S. brewery capacity utilization fell from 82% in 2013 to 65% in 2023, the Teamsters said, warning that continued import pressure could trigger more slowdowns or closures and threaten thousands of union jobs.
  • Another 19 million to 23 million hectoliters of brewing capacity is planned in Mexico over the next five years, according to the filing, extending pressure on U.S. brewers, farmers, can makers and truckers.
  • The request is part of USTR's ongoing Section 301 investigation into whether foreign policies create unfair manufacturing advantages; economists cited in the report say tariffs could also raise costs for brewers and importers.

Insights

Will tariffs hurt more American jobs in distribution than they could possibly create in brewing?
Can brands like Corona and Modelo survive if they are no longer actually brewed in Mexico?