U.S. trade with Canada, Mexico and the European Union (EU) is vital, especially for the beer, wine and spirits industries. Newly imposed tariffs — 25% on steel, aluminum and goods from Mexico and Canada, plus a proposed 200% tariff on EU wine — could raise costs on production, packaging and importing alcohol. With Mexico supplying 80% of imported beer and the United States dependent on foreign steel and aluminum to package our homemade beverages, small-town stores and consumers will pay the price as costs rise and families are forced to cut back.
Here’s what experts say will be impacted by the upcoming tariffs:
Imports:
- In 2024, the United States imported $5.2 billion worth of tequila and $93 million worth of mezcal from Mexico, along with $622 million in Canadian spirits and nearly $5.7 billion worth of wine from the European Union.
Local Breweries and Beer:
- Local craft breweries are increasing in price by a dollar or two for four cans to offset aluminum costs.
- A 25% tariff could increase the price of imported beer such as Modelo Especial and Corona by 4% to 12%.
- Aluminum and steel tariffs of 25% may increase prices by $2 a case while the price of a single pallet of aluminum cans could increase by nearly $300, passing off the increased expense to the consumer.
Wine:
- A 200% tariff on European wines could raise the price of a $15 bottle of Italian Prosecco to $45 and would almost double the cost of a $50 bottle of Champagne to $90.
Job Losses:
- A 25% tariff on distilled spirits imports from Mexico and Canada could lead to a loss of more than 31,000 U.S. jobs.