BA Urges USTR To Avoid New Section 301 Tariffs

Earlier this week, the Brewers Association (BA) submitted comments to the Office of the United States Trade Representative (USTR) regarding proposed Section 301 tariffs tied to investigations examining whether other countries are doing enough to keep goods made with forced labor out of their markets. While the BA supports efforts to ensure lawful, transparent, and responsible trade, broad new tariffs could add further cost pressures for small and independent U.S. brewers.

Ingredients and Equipment at Risk

The proposed tariffs would increase costs on a range of unique foreign brewing inputs that are not always available from domestic sources. While North American-sourced barley malt forms the backbone of the supply for domestic brewers, certain specialty malt varieties cannot be readily replaced by U.S. alternatives. Similarly, many brewers rely on specific hop varietals from Australia, the EU, New Zealand, the UK to produce distinct flavors and aromas because their characteristics are tied to specific growing regions.

Specialized brewing, processing, and packaging equipment such as centrifuges, filters, separators, and dealcoholization systems often come from abroad, particularly the EU, and domestic replacements are not always available. In addition, some specialty beer packaging uses cork closures, which the U.S. does not produce in meaningful amounts.

The Existing Aluminum Tariff Burden

The filing also provided an opportunity to underscore the existing tariff burden from Section 232 tariffs on aluminum. Close to 80% of all beer produced by small and independent brewers is packaged and sold in aluminum cans. Because the U.S. remains reliant on imported aluminum for can-grade sheet and end stock, tariff volatility continues to increase costs for brewers and consumers. Recent changes to the Section 232 aluminum tariffs have placed U.S. brewers at an additional competitive disadvantage by exempting the value of aluminum used to can imported beer, while aluminum cans used by domestic brewers remain subject to tariff-related cost pressures.

Protecting North American Trade

Stable North American trade remains a top priority as Canada is a critical supplier of barley and barley malt for U.S. brewers. Independent domestic breweries source roughly 40% of their barley malt needs from Canada. Continued duty-free treatment for USMCA-origin barley and barley malt is essential, and should extend to Canadian sourced aluminum as well.

The BA urged USTR to refrain from imposing additional broad-based tariffs that would raise costs for small U.S. manufacturers, increase prices for consumers, and create further uncertainty across the beer supply chain. Maintaining predictable, stable trade remains essential to the competitiveness and long-term health of small and independent breweries across the country.

Read the full comments here.