USA: Trump administration to implement 25% tariff on all imported canned beer and empty aluminum cans starting April 4
The Trump administration will implement a 25% tariff of all imported canned beer and empty aluminum cans starting April 4, according to a notice from the Department of Commerce, CNBC reported on April 2.
The expansion of U.S. aluminum tariffs comes shortly before President Donald Trump is expected to announce sweeping new levies on imported goods at a Rose Garden event at 4 p.m. ET.
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 quarter. While Corona is best known for coming in glass bottles, Modelo — the bestselling beer in the U.S. — most commonly comes in cans.
Constellation’s shares were down less than 1% in afternoon trading on Wednesday, but concerns about tariffs have weighed on the stock for months. The company’s shares have fallen 22% since Trump’s election in November.
The updated notice for aluminum tariffs published on Wednesday does not mention levies for imported beer packaged in glass bottles. Aluminum cans accounted for 64.1% of beer distribution in 2023, compared with glass bottles’ 26.9% share, according to the Beer Institute.
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.
The U.S. imports most of its aluminum from Canada. China and Mexico, the two other main targets of Trump’s trade ire, are also major exporters of aluminum to the U.S.
Tilbage
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