‘Let’s brew it in the United States’: Teamsters target Modelo and Corona in push for Mexican beer tariffs

Teamsters Union Seeks Higher Tariffs on Mexican Beer to Protect American Jobs

explorehotelworld.com – A major American labor organization is calling on President Donald Trump to implement substantial tariffs on beer imported from Mexico. The International Brotherhood of Teamsters believes that increasing these trade barriers would encourage more brewing operations to relocate within U.S. borders, thereby creating employment opportunities for domestic workers. This proposal emerges while the Office of the U.S. Trade Representative evaluates whether various nations have developed unfair manufacturing advantages through their domestic policies.

According to union representatives, Mexico has strategically supported its brewing sector through several mechanisms. Government-backed investment incentives, reduced labor expenses, and policies designed to boost exports have collectively strengthened the country's beer industry. These advantages have enabled Mexican breweries to capture an increasingly larger portion of the American market.

Major Brands Face Potential Tariff Changes

The proposed trade measures could significantly impact several well-known imported beer brands. Modelo, Corona, Pacifico, and Tecate represent some of the most popular Mexican beers in the United States, with much of their production occurring in Mexico before distribution to American retailers. Sean O'Brien, who serves as the general president of the International Brotherhood of Teamsters, expressed confidence in American brewing capabilities during an interview with Fox News Digital.

"We can brew Modelo beer. It's the same recipe. Let's brew it in the United States," O'Brien stated. "We are very good at producing goods and services in this country."

The union's official filing highlights substantial growth in Mexican beer production over the past decade. Since 2014, output has risen by approximately 85 percent, with roughly 80 percent of the nation's beer exports destined for American consumers. Conversely, capacity utilization at prominent U.S. breweries declined from 82 percent in 2013 to just 65 percent in 2023. Teamsters leadership warns that this downward trend puts thousands of well-compensated union positions at risk.

Broader Economic Implications of Tariff Policy

Union officials contend that implementing tariffs would redirect beer manufacturing back to American facilities. This shift would benefit multiple sectors of the economy, including agricultural producers who cultivate barley and hops, companies that manufacture aluminum cans, and transportation workers responsible for moving products nationwide. O'Brien emphasized his support for policies that prioritize domestic employment.

"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," he explained.

Concerns about American brewery employment continue to intensify as major brewing corporations invest billions of dollars in Mexican operations. The union's submission indicates that breweries have outlined plans to increase production capacity by 19 to 23 million hectoliters within the next five years. Teamsters attribute this expansion to export-oriented tax incentives, reduced labor costs, and industrial strategies designed to enhance manufacturing for international markets.

Additionally, the filing references Mexico's 2023 tax incentives for export-focused manufacturers alongside its comprehensive "Plan México" industrial strategy. Union representatives argue that these policies have stimulated additional foreign investment while simultaneously suppressing wage levels and creating competitive challenges for American producers. The Teamsters have publicly endorsed tariffs reaching as high as 75 percent on Mexican beer imports, viewing them as a potential solution to what they characterize as an uneven competitive landscape.

In a separate document submitted to the USTR, the union warned that sustained pressure from imported beer could trigger additional brewery slowdowns or complete closures across the United States. Such developments would jeopardize well-paying positions that have supported American families for multiple generations. The Teamsters' filing represents one of several submissions currently under consideration as the USTR evaluates potential trade actions within its ongoing Section 301 investigation. At the time of reporting, the USTR had not provided an immediate response to inquiries from Fox News Digital regarding the union's proposal.