As the Trump administration weighs implementing tariffs on Mexican beer, a new report argues the move would hurt the very American workers it is intended to protect by squeezing one of the U.S.beer market's most profitable segments.The report, authored by Unleash Prosperity co-founder Stephen Moore and economist David Ozgo, comes as the Trump administration continues to expand its tariff agenda, which officials say is aimed at re-shoring manufacturing, reducing trade deficits and strengthening American industry."There probably are some products for which tariffs are appropriate — products where there might be national security implications," Ozgo told Fox News Digital.
"But obviously, beer is not one of those products."While Mexican beer is brewed south of the border, Ozgo said most of the jobs it supports, like distribution, wholesaling and retailing, are in the United States.‘WE WERE RIGHT’: WINE IMPORTER TOOK TRUMP’S TARIFFS TO THE SUPREME COURT AND WONThe brewer of Modelo claimed the No.1 spot in June 2023, when Modelo Especial surpassed Bud Light on dollar sales, and it continues to rank among the country's best-selling beers (Aaron M.
Sprecher/Getty Images)The report backs that claim with data showing the U.S.beer business supports roughly 1.74 million jobs, but only about 5% are directly involved in brewing.
Most workers are employed by wholesalers, retailers, restaurants and suppliers that handle beer after it is brewed, jobs that remain in the U.S.even when the beer is imported."If you end up slapping tariffs on Mexican beer, you're not protecting American workers," Ozgo said.
"What you're really doing is cutting into the most profitable segment of the beer market right now and in turn putting U.S.jobs at risk."According to the report, Mexican beer already sells for about 52% more than mass-market domestic lagers in grocery and liquor stores.
The authors say those higher prices mean bigger profits for U.S.distributors, retailers, restaurants a...