UK beer exporters have found themselves unexpectedly impacted by a new round of US tariffs, as canned beers are now subject to a steep 25% levy – despite initial expectations of a lower rate.
In a surprising development, British brewers have been dealt a blow by what’s being dubbed a “beer can tax” under the United States’ latest global tariff regime.
While the broader structure of the tariff system suggests a 10% duty on UK food and drink products, a closer reading reveals that canned beer falls into a separate category.
Tariff Shock for British Beer Exports
President Donald Trump’s newly unveiled global tariffs impose a general 20% rate on food and drink imports from Europe. The UK had appeared to secure a more favourable rate of 10%. However, it has now emerged that canned beer is lumped into a special classification, facing the same 25% tariff rate applied to aluminium products.
Emma McClarkin, Chief Executive of the British Beer and Pub Association, highlighted the damaging implications of this change: “British beer is renowned globally and the US is one of the most important markets for British brewers, who, in 2024, exported £ 126 million of beer across the Atlantic.
A 25% tariff on beer imported into the US is a direct hit to the brewers of the UK, who contribute so much to this country’s economy and heritage.
We urge the Government to defend the great British brewing industry and strike a deal that removes these harmful tariffs. With the enormous cost of doing business, many British brewers won’t be able to sustain a hit such as this from one of our biggest trading partners.”
Concern Grows Across Europe’s Brewing Industry
The ramifications extend beyond British borders. Brussels-based trade body, The Brewers of Europe, voiced similar anxieties, pointing to the potential harm for brewers across the continent. A spokesperson stated: “The addition of Beer to Annex 1 on aluminium derivative products facing a 25% tariff that is particularly concerning to Europe’s ten thousand breweries.
The US is European brewers’ second most important export market for beer in both value and volume terms. We are currently seeking further clarity on the exact products captured by this new announcement.”
“Brewing is a key driver of growth, investment and employment on both sides of the Atlantic and a major part of people’s lives on both continents.
With value chains that stretch from the farmers grafting in the fields to the hardworking staff in the bars, it is critical to de-escalate and work towards a solution that cuts tariffs on beer and thus benefits consumers, workers and businesses in both the EU and the US.”
Potential Impact on UK Economy and Trade Relations
The UK brewing sector has increasingly relied on the US market for export growth. The sudden imposition of a 25% tariff could not only affect revenue for producers but may also disrupt wider trade relations during a time when post-Brexit trade policies remain under intense scrutiny.
This move comes amid broader market volatility triggered by shifting US trade strategies, which have already unsettled global investors, as seen when the FTSE dropped in response to Trump’s tariffs shaking global markets at the start of the year.
Industry leaders are now calling on the UK Government to engage with US counterparts to negotiate an exemption or rollback of the beer-related tariffs in an effort to shield British producers from further financial strain.
