Plus: Friday Deadline Looms for Canada and Mexico

On Sunday, the United States and the European Union agreed to a 15% tariff on most European goods, preventing the original threat of a 30% rate of being enacted if no deal was reached by August 1. The 15% tariff will not be not added to any existing industry specific duties.

What we know:

• European sourced malt and hops would fall under the 15% tariff rate.
• Aluminum and steel will remain at the 50% tariff rate and will eventually be replaced by a quota system to be determined at a later date.

What we don’t know:

• Wine and spirits tariffs are still being negotiated, and there has been no mention of beer.
• “Certain chemicals” will be tariff-free, but it is unclear whether these might include items relevant to brewing such as CIP chemicals.

Canada and Mexico

Tariffs are scheduled to rise for Canadian and Mexican goods that do not fall under the U.S.-Mexico-Canada Agreement (USMCA) on August 1. Canada would face a 35% rate and Mexico would face a 30% rate. Canadian-grown barley and barley malt falls under the USMCA so we do not anticipate a tariff change on those products. Canada is currently in an “intense phase” of negotiations with the U.S. in advance of the Friday deadline, according to Prime Minister Mark Carney.