National IPA Day Is Perfect Day for Biden to Can Trump Tariffs

The first Thursday of August (August 4^th this year) is National IPA Day, which celebrates “one of the most popular types of craft beer in the world; the India Pale Ale.” While IPA and craft beer lovers can rejoice this Thursday, American manufacturers and consumers of the 4th-most popular beer style are feeling a bit of a bust in the form of the Trump-era tariffs imposed on aluminum.

In 2018, then-President Donald Trump imposed tariffs on aluminum and steel and products imported from certain countries, using section 232 of the Trade Expansion Act of 1962 and section 301-310 of the Trade Act of 1974, respectively. Since then, these have been referred to as Section 232 and Section 301 tariffs.

Formed in 2018 in response to Section 232 and 301 tariffs, Americans for Free Trade (AFT) is a “broad coalition of American businesses, trade organizations, and workers united against tariffs.” Collectively, the coalition represents tens of millions of Americans.

In a prehearing statement to the three day public hearing examining the “economic impact” of  the Section 232 and 301 tariffs on American industries hosted by the International Trade Commission (ITC) last month, AFT remarked that they had warned policymakers that “imposing tariffs would have little positive impacts … and disproportionately negative economic impacts,” and now, “that concern has become a reality.” In fact, AFT estimated that in the four years since Section 232 and 301 tariffs were imposed, American companies have been assessed more than $140 billion in tariffs.

One industry disproportionately impacted by such tariffs is the American beer industry, specifically craft beer, including IPAs.

The Beer Institute, a member organization in the AFT, has been vocal about the severe economic consequences Section 232 tariffs have had on American brewers. In April, the trade organization reported that in the four years since the tariffs have been in place, “the U.S. beverage industry alone has paid $1.4 billion in tariffs.”

Worse, aluminum mills and smelters have been including the tariffs in their product prices, even if the metal is not a subjected metal under Section 232. A report to the Beer Institute conducted by an independent aluminum group found that between March 2018 and February 2022, of the estimated $1.42 billion paid in Section 232 tariffs, only $111 million was collected by the U.S. Treasury Department. Meanwhile, smelters “received $1.305 (92 percent) of the total by charging end-users – such as U.S. brewers – a tariff-burdened price regardless of whether the metal was meant to be tariffed based on its content or origin.”

If the negative economic effects of the tariffs are not enough to sway policymakers, then the economic climate ought to be reason enough to not burden consumers. It was reported in July that in June, 2022, the Consumer Price Index had rose 9.1 percent over the last 12 months. According to data from the U.S. Bureau of Labor Statistics, the average price of all types and sizes of malt beverages increased by 8.4 percent, from $1.523 per 16 ounces in June, 2021, to $1.660 per 16 ounces in June, 2022. At a time with increasing prices for consumers, it is ill advised to continue with government-imposed tariffs, which arguably drive-up costs even more.

Amid a significant economic decline, it is time to hop on to fixing the previous administration’s costly actions. National IPA Day is an excellent time for the current administration to reverse course on tariffs. Removing these costly burdens to consumers will recognize the international spirit and collectiveness found in IPAs and give beer lovers – and all consumers – a reason to celebrate.

Lindsey Stroud is Director of the Taxpayers Protection Alliance’s Consumer Center.