On July 23, the Office of the United States Trade Representative (USTR) finalized new Section 301 tariffs covering most goods from 60 economies. The new duties took effect at 12:01 a.m. E.D.T. on July 24, immediately after a temporary 150-day 10% global import surcharge imposed in February expired. For many brewery-related imports, tariff costs will remain near their previous level, although Australian and New Zealand hops and many types of Chinese equipment now face a higher 12.5% rate.
Canada is an important exception. Canadian goods that qualify for and are properly entered duty-free under the United States-Mexico-Canada Agreement (USMCA) are exempt from the new tariff. Qualifying Canadian-grown barley, malt, and other originating goods should therefore remain free of the additional 10% duty. Goods that do not qualify under USMCA, or are not entered with the necessary documentation, may still be subject to the tariff.
Steel and aluminum articles already covered by Section 232 are excluded from the new Section 301 duties, although existing Section 232 tariffs remain in place.
Country by Country Impact
| Source | New Tariff | Likely Brewery Imports |
|---|---|---|
| Australia | 12.5% additional | Hops |
| Canada | 10% additional, but USMCA duty-free goods exempt | Hops, equipment, parts |
| China | 12.5% additional | Brewhouses, fermenters, canning/packaging lines, pumps, controls, parts, steel kegs |
| European Union | Standard tariff plus new Section 301 duty capped at 10% combined | Hops, specialty malt, brewing and packaging equipment |
| New Zealand | 12.5% additional | Hops |
| United Kingdom | 10% additional | Specialty malt; hops; select equipment |
What Breweries Should Do
Breweries purchasing imported ingredients or equipment should:
- Ask suppliers to confirm the product’s Harmonized Tariff Schedule classification and country of origin.
- Request documentation showing that Canadian products qualify for duty-free treatment under USMCA.
- Confirm whether steel or aluminum products are covered by Section 232.
- Review purchase agreements and supplier quotes to determine who is responsible for newly imposed duties.
- Consult a customs broker when the classification or applicable tariff is unclear.
The Brewers Association recently urged USTR to avoid broad new tariffs on brewing ingredients and specialized equipment that may not be readily available from domestic sources. This final action will prolong tariff-related cost pressures for small and independent breweries.
The complete Federal Register Notice can be found here.
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