The International Brotherhood of Teamsters, one of the largest labor unions in the United States, is calling on President Donald Trump to impose significant tariffs on Mexican beer imports, arguing that popular brands such as Modelo, Corona, Pacifico, and Tecate should be brewed by American workers rather than across the border. The union's push comes as the Office of the U.S. Trade Representative (USTR) continues a Section 301 investigation into whether foreign trade policies create unfair advantages for manufacturers, potentially reshaping the $100 billion-plus U.S. beer market.
In a formal filing with USTR, the Teamsters argue that Mexico has fueled its brewing industry through government-backed investment incentives, lower labor costs, and export-focused policies that have dramatically expanded production and exports. According to the union, Mexican beer production has surged 85% since 2014, with approximately 80% of the country's beer exports shipped to the United States. Meanwhile, capacity utilization at major U.S. breweries has fallen from 82% in 2013 to 65% in 2023, a decline the union says threatens thousands of well-paying union jobs.
Sean O'Brien, general president of the International Brotherhood of Teamsters, told Fox News Digital that the union supports tariffs as high as 75% on Mexican beer imports to level the playing field. “We can brew Modelo beer. It's the same recipe. Let's brew it in the United States,” O'Brien said. “We are very good at producing goods and services in this country.” He added that tariffs would help shift production back to the U.S., supporting American breweries, farmers who grow barley and hops, aluminum manufacturers that produce cans, and truckers who transport beer across the country.
The Teamsters' filing highlights that major brewers have announced plans to add another 19 million to 23 million hectoliters of production capacity in Mexico over the next five years, an expansion the union attributes to export-focused tax incentives, lower labor costs, and industrial policies aimed at boosting manufacturing for foreign markets. The union specifically cites Mexico's 2023 tax incentives for export-oriented manufacturers and its broader “Plan México” industrial strategy, arguing these policies have encouraged additional investment while suppressing wages and making it harder for U.S. producers to compete.
The tariff push could have significant implications for some of America's best-known imported beer brands. Modelo Especial surpassed Bud Light as the best-selling beer in the U.S. in 2023, and Corona remains a top seller. The Teamsters argue that continued pressure from imported beer could force more U.S. brewery slowdowns or closures, jeopardizing good-paying jobs that have supported American families for generations. The union represents tens of thousands of workers in the brewery and distribution industries, including employees at major U.S. brewers like Anheuser-Busch and Molson Coors.
O'Brien emphasized the union's pro-American stance, stating, “I'm pro-America, pro-American worker, pro American jobs. So if there's an opportunity to tariff Mexican beer in this situation, which is gonna provide opportunity for our current members, which we have tens of thousands in the brewery and distribution industry, then I'm all for tariffs and all for keeping American jobs in America.” The Teamsters' filing is one of several submitted as USTR weighs potential trade actions under its ongoing Section 301 investigation, which examines whether foreign countries' policies create unfair trade advantages. USTR did not immediately respond to a request for comment.
The debate over Mexican beer tariffs reflects broader tensions in U.S. trade policy under the Trump administration, which has used tariffs as a tool to protect domestic industries and bring manufacturing back to the United States. However, critics argue that tariffs can raise consumer prices and provoke retaliation from trading partners. The Teamsters' push adds a labor dimension to the trade fight, highlighting the potential impact on American workers in the brewing and related sectors. The outcome of the USTR investigation could determine whether tariffs are imposed, potentially reshaping the competitive landscape of the U.S. beer market.
