It’s behind us. And although it is impossible to forecast the impact of a new president and shakeup in Congress, the Brewers Association (BA) has a few thoughts on some likely impacts that craft brewers and the alcohol beverage industry can look out for.
The most likely areas that could see changes that would affect craft brewers are in tariffs, taxes and government funding.
Of the three key areas, tariffs seem to be at the top of concerns.
“President-elect Trump has been vocal about his support to increase the tariffs that went into place under his administration as well as instituting new ones. Breweries can expect the 232 tariffs on aluminum and steel to remain in place with possible increases,” said Katie Marisic, senior director of federal affairs at the Brewers Association. “This could impact the price of aluminum cans and equipment. Breweries who import goods from China could also see an increase in the 301 tariffs impacting a range of products.”
Funding of the Alcohol and Tobacco Tax and Trade Bureau, which generally favors small brewers through marketplace enforcement and license and label review, could also possibly take a hit.
“Going forward, if Republicans control all branches of the government, there may be funding cuts to agencies across the board,” said Katie. “The Going forward, if Republicans control all branches of the government, there may be funding cuts to agencies across the board. The Alcohol and Tobacco Tax and Trade Bureau, which oversees the industry, the USDA Agricultural Research Service, and others could see budget reductions that could impact everything from working on the executive report on competition to label and formula approval times.”
Also of note is that the Senate Bipartisan Small Brewers Caucus will lose at least five members to retirement and losses.
See the full report from the BA here.