Understanding the US Tariffs on Aluminum Cans
The Department of Commerce clarified that the punitive tariff applies only to the value of aluminum content in the can, not the liquid itself. Mexico, being the leading exporter of beer and empty aluminum cans to the United States, is significantly affected by these tariffs.
Tariff Details
- Target: Aluminum cans, not the beer itself.
- Impact: Mexico, as the primary exporter of beer and empty aluminum cans to the US.
- Tariff Rate: 25% on imported empty aluminum cans.
- Exclusion: Beer made from malted grains in glass containers of no more than 4 liters each is exempt from these tariffs.
Mexico’s Relevance in US Beer Market
In 2024, the United States imported $7.741 billion worth of beer, with Mexico being the primary supplier at 82.5%. The value of US imports of Mexican-made beer grew by 10.2% in the previous year, reaching $6.277 billion.
- Beer Packaging: 58.6% of Mexican beer exports were in glass containers of no more than 4 liters, while 38.7% were in diverse materials (mainly aluminum cans) containers of no more than 4 liters.
- Empty Aluminum Cans: Mexico supplied 135 million USD worth of empty aluminum cans to the US market in 2024, making it the primary source.
Mexico’s Trade Surplus and Impact on Businesses
Mexico holds the largest trade surplus in beer commerce with the United States, exporting $6.277 billion worth of beer while importing only $2 billion, resulting in a $6.381 billion deficit.
Constellation Brands, a major importer of Mexican beer for US sale, is expected to face significant impacts. The company has quadrupled its production capacity in Mexico over the past decade.
Key Questions and Answers
- What is the focus of the US tariffs? The tariffs target aluminum cans, not beer itself.
- Which country is most affected by these tariffs? Mexico, being the leading exporter of beer and empty aluminum cans to the US.
- What types of beer packaging are exempt from tariffs? Beer made from malted grains in glass containers of no more than 4 liters each is exempt.
- How does Mexico’s beer industry fare in the US market? Mexico supplies 82.5% of the US beer imports, with a significant trade surplus.
- Which business is expected to be heavily impacted by these tariffs? Constellation Brands, a major importer of Mexican beer for US sale.
