Not only is Iowa’s rich farmland part of what makes our state so beautiful, but it is also a crucial pillar of our economy. The agricultural sector contributes $159.5 billion annually to our economy, making up one-third of our state’s total economic output. More importantly, one in five Iowans have jobs because of agriculture.
As a lifelong Republican, and a member of the Iowa GOP State Central Committee, I closely monitor the issues that matter to Iowa farmers and business owners. The situation unfolding in the domestic beer market and the impact it is having on our farmers is not getting enough attention. It’s time we wake up to the unfair trade environment American beermakers are currently facing and the threat it poses to our farmers.
American breweries purchase more than $1 billion in grain, barley and other agricultural inputs from U.S. farmers every year. In a state like Iowa, where agriculture is the backbone of the economy and essential to the identity of our communities, that demand directly supports our way of life. Unfortunately, this connection is under threat due to unfair foreign competition in the beer market. The Department of Agriculture is already reporting weakening demand for malted barley used in domestic beer production, a direct result of imports displacing American-made beer in the United States. Beer imports have grown to nearly 25% of the total U.S. market, a share that now exceeds foreign imports of automobiles, and more than 80% of those imports come from Mexico. Some estimate that if these trends continue, beer imports could reach 40%. The downstream impact on American farmers would be severe and lasting.
When we look at why this imbalance exists, we find shocking differences between the Mexican and American economies. American brewery workers earn an average of nearly $80,000 a year. Mexican brewery workers, on the other hand, earn roughly $3,700 per year. American breweries also carry the full weight of U.S. taxes, environmental standards, and labor law. Their Mexican competitors, needless to say, do not.
Is it fair that American breweries have to compete side by side with those in Mexico, given these structural differences? I don’t think so.
President Donald Trump has been clear that American workers and American industries deserve trade policy that fights for them. That is the promise of America First, and tariffs are one of the most direct tools we have to make that promise real. Imposing a tariff on beer imported from Mexico tells foreign governments that access to the American market comes with an expectation: that the competition must be fair and that our strong labor and regulatory standards cannot be used as a weapon against our own workers and producers.
I have spent years working alongside Iowa Republicans who believe in fiscal responsibility, economic growth and a government that stands up for the people and businesses it represents. Now, more than ever, we should be supporting American manufacturing and demanding fair trade. If we don’t, we will continue to see the weakening of a longstanding American industry and the economic activity it generates for Iowa.
I urge the Trump administration to impose tariffs on beer imported from Mexico to help level the playing field and restore fair competition to the beer market in this country.
Denise Bubeck is a member of the Iowa GOP State Central Committee.
This article originally appeared on Des Moines Register: Tariffs on Mexican beer could boost American farmers | Opinion
Reporting by Denise Bubeck, Guest columnist / Des Moines Register
USA TODAY Network via Reuters Connect
By Denise Bubeck, Guest columnist | USA TODAY Network
