Import Taxes Brewing Trouble for Beer Lovers

The U. S. government is about to slap a 25% tax on all imported canned beer and empty aluminum cans. This news comes just before a big announcement about more taxes on imported goods. The tax will hit some companies harder than others. Constellation Brands, for example, imports all of its beer from Mexico. This includes popular brands like Modelo and Corona. Modelo is especially popular in the U. S. and usually comes in cans. The stock market has already shown signs of worry. Constellation Brands' shares have dropped 22% since the election. This is because investors are concerned about the impact of these taxes. However, the tax only applies to canned beer and not beer in glass bottles. In 2023, cans made up 64. 1% of beer sales, while bottles only made up 26. 9%. This shows just how popular canned beer has become. Canned beer is cheaper to produce and transport than bottled beer. This is because cans are lighter and easier to handle. The U. S. gets most of its aluminum from Canada, China, and Mexico. These countries are also big targets of the U. S. 's trade policies. This means that the tax on aluminum cans could have a big impact on the beer industry. Brewers might have to find new ways to make and sell their beer. Consumers might also see changes in the price and availability of their favorite canned beers. This tax could also affect the environment. Aluminum cans are more recyclable than glass bottles. If the tax makes canned beer more expensive, people might switch to bottled beer. This could lead to more waste and less recycling. It is important for consumers to think about these issues and make informed choices. The beer industry is facing a big challenge. But with creativity and innovation, it can find ways to adapt and thrive. The tax on imported canned beer is just one piece of a larger puzzle. It is up to consumers, brewers, and policymakers to work together and find solutions that benefit everyone.