A steady decline in beer consumption in the U.S. already has barley farmers on edge.
Now those same growers are “scared almost to death” at what President Donald Trump’s tariffs mean for their farms and livelihoods.
“The people who pay for tariffs are the farmers,” barley farmer Steve Sheffels, vice president of the Montana Grain Growers Association, told Fast Company. “We grow way more barley than we can possibly consume, so if those markets go away, then farmers are going to be competing for a much more limited number of buyers.”
Mexico is the third largest importer of U.S. barley and the biggest importer of U.S. malt, which is made from germinating kernels of barley and is a key ingredient in beer.
Many barley farmers ship their produce to Mexico, which returns the barley to the U.S. in the form of popular Modelo, Corona and Pacifico brand beers.
“There’s a sinking feeling and a feeling of dread that things are bad, and things are going to stay bad for a while,” Sheffels said. “We are scared almost to death about tariffs.”
If Mexico issues retaliatory tariffs or buys barley from other trading partners, experts say it could deal another economic blow to American farmers as U.S. consumers increasingly eschew beer in favor of other alcoholic beverages or abstinence.
Tariffs leveled against U.S. barley and other agricultural goods by Canada, the largest importer of U.S. malt barley, went into effect on March 4.
Frayne Olson, crop economist at North Dakota State University, told Fast Company that farmers are worried that tariffs could decimate U.S. barley exports to Canada.
Beer consumption has been on a downward swing and in 2024, it hit its lowest level in over 40 years as more Americans chose other alcoholic beverages, said Bart Watson, chief economist at the Brewers Association.
Hard seltzer drinks and canned cocktails have provided stiff competition to beer, while Gen Zers and millennials are drinking less alcohol overall than most previous generations, according to a 2024 Gallup poll.
Trump has said his tariffs are aimed at slowing the influx of illegal drugs and migrants into the U.S. He has acknowledged that the tariffs could have adverse economic impacts on Americans, at least in the short term.
