One of the major labor unions in the U.S., the International Brotherhood of Teamsters, is urging President Donald Trump to encourage more domestic brewing of beer, specifically by imposing substantial tariffs on beer imported from Mexico. They argue that American workers should produce the beer that Americans love rather than relying on imports.
This request comes as the U.S. Trade Representative’s office is looking into foreign policies that might give countries an unfair edge in manufacturing. The Teamsters believe Mexico is boosting its beer industry with government incentives, low labor costs, and policies favoring exports, which increases both production and the Mexican beer market’s share in the U.S.
The proposed tariffs could impact many popular imported beer brands in the U.S., like Modelo, Corona, Pacifico, and Tecate, which are brewed in Mexico and then shipped across the border.
Sean O’Brien, the Teamsters president, expressed his thoughts to Fox News Digital, stating, “We can brew Modelo beer. It’s the same recipe. Let’s brew it in America.” He emphasized the capability of U.S. workers to produce quality goods and services.
Since 2014, beer production in Mexico has risen by 85%, with approximately 80% of its beer exports heading to the U.S. According to the Teamsters’ filing, U.S. breweries have seen their capacity utilization drop from 82% in 2013 to 65% this year, a situation they believe threatens thousands of good-paying union jobs.
The union contends that imposing tariffs could revitalize domestic beer production, benefiting not just the breweries but also farmers who grow barley and hops, can manufacturers, and truckers involved in beer transport.
O’Brien added, “I’m pro-America, pro-American workers, pro-American jobs. So if there’s a chance to put tariffs on Mexican beer to support our members in brewing and distribution, I’m all for it.”
The Teamsters have raised concerns that as large beer companies invest heavily in Mexican production, the threat to U.S. jobs increases. Their filings note that planned expansions could add between 19 and 23 million hectoliters of brewing capacity over the next several years, driven by tax incentives, low labor, and policies aimed specifically at exports.
Moreover, they pointed to Mexico’s 2023 tax incentives for export-centric production and the broader Plan Mexico strategy, claiming these measures hinder U.S. competition while fostering investment that undercuts wages.
The Teamsters express support for tariffs of up to 75% on Mexican beer imports to address what they see as an imbalanced competitive landscape. They also highlighted in a different filing that increasing competition from imports could force U.S. breweries to operate at reduced capacity or even shut down, jeopardizing high-paying jobs that have been vital to American families for years.
This filing is part of several submitted as the U.S. Trade Representative examines potential trade actions in an ongoing investigation. There was no immediate response from the USTR regarding these developments.
