Aluminum cans await filling with craft beer during production at Black Plague Brewery in Oceanside, California, on March 14, 2025.
Mike Blake | Reuters
Starting Friday, the Trump administration will impose a 25% tariff on all imported canned beer and empty aluminum cans, as stated in a notice from the Department of Commerce.
This increased U.S. aluminum tariffs comes just ahead of President Donald Trump‘s anticipated announcement regarding extensive new tariffs on imported products during a Rose Garden event at 4 p.m. ET.
Industry analysts predict that the impact of the canned beer tariffs will significantly affect Constellation Brands, as the company sources all its beer from Mexico, including popular brands like Modelo and Corona. Notably, beer made up 82% of the company’s sales in its latest quarter. While Corona is predominantly known for its glass bottles, Modelo—the top-selling beer in the U.S.—is primarily distributed in cans.
Constellation’s stock saw a minor dip of less than 1% in afternoon trading on Wednesday. Nonetheless, the ongoing concerns related to tariffs have adversely impacted the share price for months, resulting in a 22% decrease since Trump’s election in November.
The most recent update on aluminum tariffs does not include any duties on imported beer in glass bottles. In 2023, aluminum cans represented 64.1% of beer distribution, while glass bottles held a 26.9% market share, according to the Beer Institute.
Canned beer has been steadily increasing its share in the market, benefiting from easier production and transportation compared to heavier glass bottles, resulting in lower prices for consumers.
The U.S. primarily sources its aluminum from Canada. Additionally, China and Mexico, which are significant targets of Trump’s trade policies, are also key aluminum exporters to the U.S.
The Trump administration plans to implement a significant 25% tariff on all imported canned beer and empty aluminum cans effective from a specified Friday, as per a notice released by the Department of Commerce. This announcement comes just ahead of President Donald Trump’s intended press conference at the Rose Garden, where he is expected to unveil a broader set of tariffs targeting various imported goods.
Analysts in the industry anticipate that the major impact of the new canned beer tariffs will primarily affect Constellation Brands, a prominent player in the beverage sector. Constellation specializes in importing its beer brands, notably Corona and Modelo, from Mexico, with beer representing a substantial 82% of its sales in its latest quarterly report. While Corona typically is recognized for its glass bottles, Modelo, which ranks as the best-selling beer in the U.S. market, is predominantly sold in cans. In relation to the upcoming tariff, Constellation’s shares were slightly down by less than 1% during Wednesday’s afternoon trading session. However, the stock has faced pressure and a decline of about 22% since Trump’s election in November, due to ongoing worries regarding tariffs.
The revised notice related to aluminum tariffs does not specify any additions regarding beer packaged in glass bottles, indicating a focused approach on canned beer. As per data from the Beer Institute, aluminum cans constituted 64.1% of beer distribution in 2023, significantly surpassing the 26.9% market share held by glass bottles. Over recent years, there has been a notable shift in consumer preferences, with canned beer gaining prominence against bottled beer, primarily because cans offer advantages in terms of production, transportation efficiency, and lower consumer prices.
The U.S. primarily sources its aluminum from Canada, with China and Mexico being other prominent exporters targeted by Trump’s trade policies. As trade dynamics shift and tariffs are imposed, the implications for companies like Constellation Brands could be significant, influencing pricing strategies and market conditions in the beverage industry. The introduction of tariffs is indicative of a broader trend under the Trump administration aimed at protecting domestic industries by imposing levies on foreign imports, a strategy that has sparked mixed reactions within the market and among policymakers.
Given the growing market share of canned beer and the reliance of certain companies on international imports, stakeholders across the industry will likely be closely monitoring the impacts of these tariffs. The ongoing trade tensions may also prompt shifts in sourcing strategies and operational adjustments as companies seek to mitigate the effects of increased costs stemming from the imposed tariffs. Overall, as both domestic and international markets respond to these regulatory changes, the landscape of the beverage industry, particularly the canned beer segment, may undergo notable transformations in the near future.
