The International Brotherhood of Teamsters is advocating for the imposition of significant tariffs on Mexican beer imports, a move they believe would bolster domestic manufacturing and protect American jobs. The union has urged the Trump administration to consider tariffs as high as 75% on brands like Modelo, Corona, Pacifico, and Tecate, arguing that current trade dynamics unfairly benefit Mexican brewers.
Teamsters president Sean O'Brien stated that these popular imported beers could instead be brewed within the United States. "We can brew Modelo beer. It's the same recipe. Let's brew it in the United States," O'Brien told Fox News Digital. He emphasized a commitment to American workers and jobs, asserting that tariffs would create opportunities for the tens of thousands of Teamsters employed in the brewery and distribution sectors.
The union's filing with the Office of the U.S. Trade Representative (USTR) highlights that Mexican beer production has increased by 85% since 2014, with approximately 80% of its exports destined for the U.S. market. Concurrently, capacity utilization at major U.S. breweries has declined from 82% in 2013 to 65% in 2023. The Teamsters attribute this shift to Mexico's government-backed investment incentives, lower labor costs, and export-focused industrial policies, such as the "Plan México" strategy and export-oriented tax incentives introduced in 2023.
These policies, the union argues, have encouraged substantial investment in Mexican brewing capacity, while suppressing wages and making it difficult for U.S. producers to compete. The Teamsters point to planned expansions in Mexican production capacity, estimated to add between 19 million and 23 million hectoliters over the next five years, as a direct threat to American brewery jobs.
The union's push for tariffs is part of a broader submission to the USTR as it continues its Section 301 investigation into whether certain countries' policies create unfair manufacturing advantages. The potential impact of increased tariffs could raise costs for brewers and importers, potentially leading to job cuts within the beer industry, according to economists. The Teamsters contend that such measures are necessary to counteract an uneven playing field and preserve well-paying brewery jobs that have historically supported American families.