A new report argues that implementing tariffs on Mexican beer would hurt American workers, squeezing one of the US 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.
Impact on US Jobs
The report notes that Mexican beer is brewed south of the border, but most of the jobs it supports, like distribution, wholesaling, and retailing, are in the United States. According to the report, the US 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 US even when the beer is imported. The authors estimate that every gallon of Mexican beer generates about $26.27 in economic value, with about $19.42 going to US businesses and workers through distribution, retail, transportation, marketing, taxes, and other domestic economic activity.
Tariff Concerns
Ozgo said tariffs would ultimately force brewers to either absorb the added costs, reduce investment, or pass the costs on to consumers through higher prices. The report also argues that moving production of Mexican beer to the United States could undermine the brands’ authenticity and value.
Original reporting: Fox News (HLL/CB) — read the source article.
