The Teamsters are hoping to use President Donald Trump’s commitment to tariffs to boost the American beer industry, which has an 80% unionization rate. They sent a letter to Commerce Secretary Howard Lutnick, requesting new tariffs on Mexican beer, which includes popular brands such as Modelo.
Teamsters President Sean O’Brien said the union has worked for decades to raise industry standards for U.S. breweries, but, “over the last 20 years as imported non-union beer has come to account for nearly 24% of the U.S. market, those industry standards have come under sustained pressure.”
“The U.S. has one of the highest shares of beer imports when compared with other large countries, with beer imports even exceeding foreign imports in other high-profile categories of trade such as automobiles,” O’Brien said. “As you may be aware, the vast majority of U.S. beer imports come from Mexico, where labor costs and wages are a fraction of what they are in the United States.
“Our nation’s trade policy should be driving a race-to-the-top in terms of labor standards across North America, not forcing U.S. workers to compete with low-road Mexican companies that pay their workers pennies on the dollar in a race-to-the-bottom,” he continued.
He warned that imported beer could soon represent 40% of U.S. consumption, cratering the industry. The trend could cost the U.S. economy $23 billion and tens of thousands of jobs.
To prevent this loss, O’Brien requested the administration “develop a strategic plan to utilize all the tools at your disposal (including targeted tariffs where necessary)” to help the U.S. beer industry and “restore economic balance and fairness in our trading relationship with Mexico.”
TRUMP TEASES TARIFF ‘BREAKS’ FOR COUNTRIES AHEAD OF APRIL 2 RECIPROCAL DAY
Trump has emerged as an unexpected ally to struggling U.S. brewers, with his threat of 200% tariffs on European alcohol viewed as a major boost to the industry.
O’Brien is one of a few organized labor leaders to take a warmer approach to Trump, a major shift from a longtime Democratic stronghold. The Teamsters head spoke at the Republican National Convention but not the Democratic National Convention. He withheld a presidential endorsement in 2024 after an internal poll found a majority of members supported Trump. O’Brien’s lack of an endorsement was seen as favorable to Trump.
