Bonus Tariffs on Canned Beer

The Trump administration will impose a 25% tariff on all imported canned beer and empty aluminum cans beginning Friday, according to a notice issued by the Department of Commerce. Modelo—the top-selling beer in the U.S.—is primarily distributed in cans.

The move expands existing U.S. aluminum tariffs and precedes the "Liberation Day" tariffs announced April 2.  

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 notes..

Industry analysts project that Constellation Brands will be among the most affected. The company imports all its beer from Mexico, including the popular Modelo and Corona brands. Beer accounted for 82% of Constellation’s revenue in the most recent quarter. While Corona is largely sold in glass bottles, Modelo—the top-selling beer in the U.S.—is primarily distributed in cans.

[90 FR 14786]. [Executive Order] 

Aluminum Derivatives Beer and Empty Aluminum Cans Pursuant to Proclamation 10895 Adjusting Imports of Aluminum into the United States