The Trump administration is considering tariffs on Mexican beer, which a new report claims could negatively affect American workers. The report, authored by Stephen Moore and economist David Ozgo, suggests that the tariffs would harm the U.S. beer market, particularly in distribution, wholesaling, and retailing jobs that are primarily based in the United States. Ozgo stated that while some products may warrant tariffs for national security reasons, beer is not one of them.
The report indicates that the U.S. beer industry supports approximately 1.74 million jobs, with only about 5% directly involved in brewing. Most jobs are in distribution and retail, which would remain in the U.S. even if beer is imported. The authors argue that imposing tariffs could reduce profitability in the beer market, ultimately risking U.S. jobs.
Currently, Mexican beer is priced about 52% higher than mass-market domestic lagers, which contributes to greater profits for U.S. businesses involved in its distribution and sale. The report estimates that each gallon of Mexican beer generates about $26.27 in economic value, with around $19.42 going to U.S. businesses and workers.
Ozgo warned that tariffs could lead to higher consumer prices or reduced investment from brewers. He also noted that moving production of Mexican beer to the U.S. could compromise brand authenticity, referencing Anheuser-Busch InBev's past decision to relocate production of Beck's beer. The Trump administration has yet to finalize its policy on Mexican beer imports.