


This week, let’s put down our midsummer cookout plates long enough to remember sacrifices made across generations to secure independence, peace and prosperity. We might also reflect on how British trade interference with goods such as tea helped spark the Fourth of July holiday.
As 2019’s international trade wars drag on, perhaps you’ve noticed some signs of government interference while shopping for that cookout. Tariffs make government-favored products into winners, but overlooked products and those caught in the retaliation lose out.
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If news from the front lines of the trade war is depressing, you can drown your sorrow in a can of
“Aluminum tariffs are increasing brewers’ costs and are an anchor on a vibrant industry,” said Jim McGreevy, chief executive of the Beer Institute, an industry group. “Each brewer is deciding for themselves how to absorb that expense, whether it’s raising prices, laying off workers or delaying innovation and expansion.” A brewing industry study this year even partly blamed aluminum tariffs for the disappearance of 40,000 beer-related jobs since 2016.
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After the Trump administration started slapping tariffs on Chinese goods in early 2018, American farmers immediately found themselves in Beijing’s crosshairs through 25% retaliatory tariffs on soybeans. Overnight, $12 billion a year in exports collapsed, and the cash price plummeted.
“Soybean farmers like me are feeling the impacts of the tariff war, and they are unsure if they will be able to make it through another growing season,” Missouri farmer and American Soybean Association board member Ronnie Russell told a congressional committee June 19. He also noted, “The loss of the China market cannot be fully replaced.”
In fact, American farm exports are expected to drop by $1.9 billion during the 2019 fiscal year, according to Department of Agriculture chief economist Robert Johansson.
The uncertainty is taking a heavy toll. Farmers, still uncertain how things will play out, are delaying their equipment purchases. Deere & Co., the world’s largest tractor manufacturer, just cut the profit estimate for its agriculture division. CEO Samuel Allen pointed to customer concerns over tariffs and trade policies.
Plenty of Americans and businesses support the president’s approach to China, but just as many are worried that further tariffs will do more harm than good. The freedom to buy and sell as we please is an American founding principle. Future economic growth — and happy Independence Days for American businesses, farmers and the people they employ — depends on sticking to it.