The value of wine imported into the United States has always been greater than the value of beer imported. However in 2020 this changed, and the value of beer imported into the U.S. surpassed the value of wine. Different theories and methods have been proposed as to why this is happening such as government policy and the coronavirus.

Did Covid-19 Affect This?

A common belief is that the coronavirus led to beer becoming a wanted commodity. This is because, with high levels of unemployment, the level of economic depression went up. This could have led to more consumption of beer. Beer is known for being a countercyclical good, meaning that when the economy is bad, it does well. On the other hand, the import of beer has been increasing and hitting records for over a decade. There may be other reasons why beer is doing so well. Despite the coronavirus may not have an effect on the beer imports it could have affected the wine imports.

Where is most Beer Imported From?

When beer comes into the U.S. it is imported from various countries. Mexico was responsible for over 70% of beer imported in 2020. Mexico’s market share and imports have been steadily increasing over the last 20 years. And this includes the importing of beer. Other countries like Canada, Germany, and the Netherlands have decreased beer imports over that time period, however. A belief is that the proximity of Mexico to the U.S. means that the customer will get their product quicker. Since Mexico is so close it may seem like an ideal country of choice. Instead of further regions.

The Impact of Tariffs on Wine

In 2019 tariffs were placed on wine from France and other countries in Europe before the coronavirus even reached the U.S. The result of this was felt all last year and even in 2021. The importing of French wine dropped greatly. Interestingly, Italy did not have tariffs placed on its wine in 2019. Italy’s wine imports not only stayed relatively steady but surpassed France.

Months after the tariffs were placed on the wine was when the coronavirus hit the U.S. The shutting down of restaurants and bars that order wine internationally added to the decline since they are the largest business sectors that rely on wine. With a 25% tariff and businesses closing, the wine industry felt the effects.

A1 Worldwide Logistics

When importing goods such as wine or beer from a foreign supplier they have to go through customs. The customs clearance process tends to not be simple, and you may be lost if it’s your first time doing it. Finding an experienced customs broker to guide you through the process can save you time and energy. If you are looking for a customs broker, call us at 305-821-8995 or email us at info@a1wwl.com for or information.

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