1. Government Affairs Updates

Update: Tariffs on Canada, Mexico, and China Slated for March 4

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Director of Trade, Tax and Federal Government Relations at Diageo

Katie Marisic dedicated a decade of service to the Brewers Association, most recently as Senior Director of Federal Affairs, during which time she was recognized multiple years as one of Washington’s top lobbyists. Based in D.C., she planned and executed legislative, regulatory, and political strategies to expand the association’s federal affairs presence on Capitol Hill. Prior to joining the BA, Katie was Vice President of Political Affairs at the National Association of Federal Credit Unions, and she got her start in politics working on congressional campaigns during the 2006 and 2008 elections. A Pennsylvania native and longtime craft brewing supporter, Katie helped open Atlas Brew Works in Washington, D.C., in 2013. When she’s not championing the craft brewing community, you can sometimes find her pouring beers at a local tasting room.

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This article was originally published on March 3, 2025. It was most recently updated on March 6, 2025.

On March 6, the Trump administration announced that they would be delaying the 25% tariffs on certain goods from Mexico and Canada. The updated modifications include:

  • 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin
  • A lower 10% tariff on those energy products imported from Canada that fall outside the USMCA preference
  • A lower 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA preference
  • No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference

How Does This Impact Breweries?

The USMCA Rules of Origin found within General Note 11 of the Harmonized Tariff Schedule of the United States say that “agricultural and horticultural goods grown in the territory of a USMCA country shall be treated as originating in territory of that USMCA country even if grown from seed, bulbs, rootstock, cuttings, slips or other live parts of plants imported from a non-USMCA country.” Based off of that language, the Brewers Association believes that barley and malt that originates in the Canada or Mexico would be exempted from 25% tariffs under these modifications.

On Thursday, Feb. 27, the Trump administration announced that they plan to enforce tariffs on all goods from Mexico, Canada, and China beginning March 4. These tariffs were initially proposed in early February but the potential tariffs on Canada and Mexico were given a one-month reprieve as negotiations between the two countries and the United States continued. Similar to when they were announced in February, the administration pointed to fentanyl and other illicit drugs coming across the border as the reason for imposing the tariffs on these countries.

The proposed amounts of the tariffs being discussed are 25% tariffs on all goods from Mexico and Canada (Canadian energy imports tariffs will be levied at 10%), and an additional 10% on all goods from China (on top of the 10% that went into effect in February). There have been ongoing negotiations between the U.S. and affected countries, and negotiations have resulted in delays and lower tariff rates in the past, but as of Monday the administration seemed adamant that they would go into place at the current proposed rates on Tuesday, March 4.

The Brewers Association believes that some of the following goods could be impacted if the tariffs go into place on March 4:

  • Barley
  • Aluminum
  • Oil and energy costs
  • Reciprocal tariffs on U.S. beer and other alcohol beverages sold in Canada and Mexico

Breweries should connect with their suppliers. The companies who supply the brewing industry have likely been preparing for this. Reach out to them to learn about their strategy for dealing with tariffs and to learn how it could directly affect your brewery.

Other tariff action discussed by the administration:

  • 25% tariffs on steel and aluminum imported into the U.S. were delayed but could go into effect on March 12. How broadly these tariffs would be implemented is still unknown.
  • The Secretaries of Treasury, Commerce, the U.S. Trade Representative, and other agencies were instructed to investigate reciprocal tariffs, which could be imposed on countries who place tariffs or fees such as discriminatory taxes on U.S. goods imported into their country are proposed to go into effect on April 2.

In the last Trump administration, the threat of tariffs was often used a negotiating tool, so until they go into effect these are simply proposals. Countries can negotiate for exemptions and, in the case of broad tariffs, businesses are often given the ability to apply for exclusions. The Brewers Association will provide updated information if the administration allows businesses to request exclusions for certain goods and products.

Additional information about tariffs:

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Link to author biography
Director of Trade, Tax and Federal Government Relations at Diageo

Katie Marisic dedicated a decade of service to the Brewers Association, most recently as Senior Director of Federal Affairs, during which time she was recognized multiple years as one of Washington’s top lobbyists. Based in D.C., she planned and executed legislative, regulatory, and political strategies to expand the association’s federal affairs presence on Capitol Hill. Prior to joining the BA, Katie was Vice President of Political Affairs at the National Association of Federal Credit Unions, and she got her start in politics working on congressional campaigns during the 2006 and 2008 elections. A Pennsylvania native and longtime craft brewing supporter, Katie helped open Atlas Brew Works in Washington, D.C., in 2013. When she’s not championing the craft brewing community, you can sometimes find her pouring beers at a local tasting room.

See Katie Marisic's Articles