One of the country’s largest labor unions is pressing the administration to impose steep tariffs on Mexican beer, arguing that more of the popular import should be produced by American workers.
The International Brotherhood of Teamsters has urged the Office of the U.S. Trade Representative to target Mexican brewers, citing what it calls unfair trade advantages built through government incentives and lower labor costs.
The union says Mexico has expanded its brewing sector with export-focused policies, allowing imported beer to capture a growing share of the U.S. market at the expense of domestic production.
The proposal would affect well-known brands such as Modelo, Corona, Pacifico, and Tecate, most of which are brewed in Mexico before reaching U.S. retailers.
Teamsters general president Sean O’Brien said the same recipes could be produced domestically, keeping jobs and manufacturing capacity inside the United States.
Union filings note that Mexican beer production has risen 85% since 2014, with roughly 80% of exports sent to the U.S. market.
Over the same period, capacity utilization at major U.S. breweries dropped from 82% in 2013 to 65% in 2023, a decline the union warns threatens thousands of union jobs.
The Teamsters argue tariffs would restore balance by supporting American breweries, grain and hop farmers, aluminum can makers, and the truckers who distribute beer.
O’Brien said the move is about protecting American workers and preserving stable, well-paying jobs in brewing and distribution.
The union points to continued multibillion-dollar investments by major brewers in Mexico as evidence the threat to U.S. employment is accelerating.
Filings state that breweries plan to add 19 million to 23 million hectoliters of production capacity in Mexico over the next five years, driven by tax incentives and industrial policy aimed at exports.
The Teamsters also cite Mexico’s 2023 export manufacturer tax breaks and its broader industrial strategy, saying these measures suppress wages and undermine U.S. competitiveness.
The union has publicly backed tariffs as high as 75% on Mexican beer, calling them a needed response to an uneven playing field.
It warns that without action, more U.S. breweries could face slowdowns or closures, jeopardizing generations of family-supporting jobs.
The Teamsters’ submission is among several under review as trade officials weigh potential action through an ongoing Section 301 investigation.
