Shortly before President Trump’s announcement of broad baseline tariffs on Wednesday afternoon, the U.S. Department of Commerce released a document outlining separate 25% duties on beer and aluminum cans, set to go into effect just after midnight on Friday. The updated list of items subject to aluminum tariffs, initially announced by Trump in February and effective March 12, now includes beer and empty aluminum cans. These new duties apply to imports from any country.
The tariff codes specify that the 25% rate applies to beer and empty aluminum cans. According to an analysis by the Brewers Association, these tariffs are expected to impact all imported beer, not just canned beer.
On Wednesday afternoon, Trump announced a universal baseline tariff of 10% on nearly all imported goods from all countries, effective Saturday. Certain trading partners like China, Japan, and the European Union will face higher rates starting on April 9. The directive includes exemptions for items such as copper and lumber, while previously announced tariffs on steel, aluminum, cars, and automotive parts will remain unchanged.
The addition of beer and cans to the tariff list will have implications for packaging suppliers and the beer industry, which has already been facing challenges due to changing consumer preferences. A previous controversy involving Bud Light in 2023 led to lower sales volumes for packaging suppliers like Ardagh and Ball. Although Constellation Brands’ Modelo emerged as the best-selling beer in America following the Bud Light incident, analysts predict that the new tariffs will significantly impact Constellation, which imports all its beer from Mexico.
While the consumer packaged goods industry primarily manufactures products in the U.S., some critical ingredients and inputs are imported due to limited domestic availability. Industry associations have raised concerns about the impact of tariffs on steel and aluminum on canned food and beverage prices, urging targeted relief to ensure these products continue to be made in America.
Aluminum Association CEO Charles Johnson emphasized the significant investments made in the U.S. aluminum industry since 2016 and called for measures to address unfairly traded aluminum while securing necessary access. The Aluminum Association is confident that the administration will take appropriate action, as it did during Trump’s first term.
This story includes contributions from Sarah Zimmerman.