U.S. President Donald Trump has announced a new 25% tariff on Mexican canned beer, set to take effect this Friday. While Mexico is not included in the broader list of countries subject to Trump’s “reciprocal tariffs,” the new duty on canned beer expands existing tariffs on Mexican steel and aluminum. This move could impact Mexico’s dominant position in the U.S. beer market, where brands like Modelo Especial are top sellers.
Trump’s announcement, made in the White House Rose Garden, outlined tariffs on various imports but left USMCA-compliant goods unaffected. A White House fact sheet clarified that while Mexico and Canada remain exempt from the broader tariff order, non-USMCA-compliant goods will face a 25% tariff, with some energy and potash products taxed at 10%.
Mexico remains the largest beer exporter to the U.S., with shipments valued at $6.3 billion last year. The new tariff applies specifically to canned beer due to its aluminum packaging, following Trump’s previous tariffs on Mexican steel and aluminum. Despite differing interpretations by CNBC and Reuters on whether all Mexican beer is affected, it is clear that the tariff extends to beer sold in aluminum cans.
Trump also reaffirmed that his previously announced 25% auto tariffs will take effect Thursday, though vehicles assembled in Mexico with U.S. content will see reduced rates. The Mexican Association of Automotive Distributors estimates that most Mexico-made cars contain about 40% U.S. parts, effectively lowering their tariff to 15%. Meanwhile, tariffs on USMCA-compliant auto parts will remain at 0% until a new process determines duties based on non-U.S. content.
In response, President Claudia Sheinbaum announced that her administration will present an economic strategy on Thursday. While she has dismissed a direct “eye for an eye” tariff response, Mexico could target certain U.S. products, as it did in 2018 when Trump imposed tariffs on steel and aluminum. Additionally, Sheinbaum hinted at possible tariffs on Asian imports, particularly vehicles, to support domestic manufacturing and possibly ease trade tensions with the U.S.
The Mexican peso strengthened after Trump’s announcement, reflecting investor confidence that Mexico was spared from broader tariffs. Economy Minister Marcelo Ebrard reassured that most Mexican businesses could comply with USMCA rules, keeping their exports tariff-free.
Despite Trump’s criticism of Mexico’s trade surplus with the U.S., the USMCA remains a safeguard against harsher tariffs, reinforcing Mexico’s critical role in North American trade.