The United States may face a shortage of popular alcohol brands due to tariffs imposed by President Donald Trump as part of the trade war. The cost of beer, wine, and other spirits could significantly increase, leading to job losses and the disappearance of some brands from store and bar shelves.
This is reported by Finway
On April 2, the White House announced a 25% tariff on imported beer, as well as on empty aluminum cans. This decision could negatively impact international alcohol companies, particularly Diageo, which distributes brands such as Johnnie Walker and Hennessy, as well as Heineken.
“We are observing that the worst predictions have not come true,” noted Jefferies analyst Edward Mandy.
At the same time, he emphasized that the 200% tariffs on alcohol from the European Union and the 25% tariffs on Mexican tequila and Canadian whiskey were avoided, which positively affected the shares of alcoholic beverages, which opened unchanged or even up on April 3.
However, later Trump declared a state of emergency in the economy, resulting in increased tariffs of 20% on imports from the European Union, including alcohol. This could significantly impact beer imports, which, according to the U.S. Census Bureau, exceeded $7.5 billion in 2024.
Major Beer Importers in the US
Among the major beer importers in 2024 were:
- Mexico – $6.3 billion;
- Netherlands – $683 million;
- Ireland – $192 million;
- Canada – $73 million.
Experts predict that due to the new tariffs, sales of French wine and other spirits in the US could drop by at least 20%. The Italian trade association Federvini is already preparing for a new “economic trauma,” recalling the 50% drop in beer exports to the US during Trump’s first term.
“Many brands that cannot be replaced by local production will disappear from consumers’ tables in the US, while a serious crisis of production and employment looms over Italy and Europe,” stated Federvini President Mikaela Pallini.
Opposition to the imposed tariffs has also emerged in the US. Chris Swonger, President and CEO of the Distilled Spirits Council of the United States, emphasized that the alcohol industry has been subject to tariffs on a “zero for zero” basis for decades, and therefore should be excluded from the main volume of imports.