American Quality Doesn’t Depend on Global Competition
Next time you grab a pint of double IPA, it’s a moment to appreciate the vibrancy and competitiveness of the U.S. economy.
According to Scott Burns from Texas Christian University and Caleb Fullers from Grove City College, foreign competition is often credited for advancements in American brewing. They argue that the success of craft beer results from pressure exerted by brands like Heineken and Stella Artois. Most brewers claim that improvements in beer came from this competition, not some sort of protective favoritism from the government.
But I think it’s essential to consider the perspective of the American brewers who sparked the craft beer movement. It’s clear that the American beer renaissance was predominantly a homegrown phenomenon. In the 1970s, a few major brands dominated the market, but soon local and microbreweries began to flourish, vying for tap space and shelf presence. This led to the development of a diverse and innovative beer culture, including styles like hazy IPAs, barrel-aged stouts, and sour beers, all emerging without significant influence from European competitors.
Quality doesn’t stem from shipping containers full of foreign goods. It emerges within a rich and competitive U.S. market, which supports a dynamic and experimental economy.
The U.S. as the World’s Largest Free Trade Zone
This is where the Burns and Fullers of the world miss the mark. The U.S. economy produces around $28-29 trillion annually, matching the total value of global exports. Our GDP accounts for roughly a quarter of the world’s total output. While imports might diversify product options, they aren’t essential for ensuring quality in American markets.
The principle of free trade suggests that nations should focus on their “comparative advantage.” For instance, coffee from Colombia, wine from France, and cars from Germany are examples of this theory. However, that neatly packaged model just doesn’t fit the U.S. scenario.
The United States operates as a massive, diverse economy with a plethora of climates, resources, and skill sets. We can cultivate both olives and cranberries, and produce semiconductors, soybeans, airplanes, and avocados—all without overlapping crops. This isn’t merely about specialization; it represents a comprehensive advantage. Our vast economy allows for the production of high-quality goods on an unprecedented scale. There’s no need to focus narrowly to operate efficiently; our internal market is large enough to facilitate both competition and quality.
This is why the narrative of free trade typically applies to smaller countries. Nations like France, Canada, South Korea, and the UK depend on imports to achieve quality and variety. The U.S. does not share this reliance. Instead, our economy functions as an independent market. Within it, competition thrives, fostering innovation that isn’t contingent on foreign trade. Contrary to the beliefs of some free traders, the reality is that the global economy could benefit from enhanced access to American quality products. Protective measures in their markets often harm their consumers. They would benefit from opening up to U.S. products—even if it means facing higher tariffs from us.
Indeed, this perspective aligns with recent developments. President Trump’s trade policies and the initiatives led by Treasury Secretary Scott Bescent and U.S. Trade Representative Jamieson Greer illustrate this trend.
Understanding Tariffs and Competition
Proponents of free trade suggest that tariffs result in paying more for inferior products. However, their argument backfires. If competition truly drives quality, then having a competitive domestic industry is essential. Many foreign producers—often supported by their governments—diminish American competition. This lack of competition results in diminished quality and increased prices. Furthermore, it leaves us reliant on foreign suppliers with no viable domestic options.
Tariffs don’t extinguish competition; they preserve it, ensuring that American industries have the time to innovate and thrive within the world’s largest market. Without such protection, we face the risk of foreign monopolies dictating prices for whatever they choose to sell us.
So, raise a pint of beer, drench a roast chicken with olive oil, or pour some cranberry sauce. In America, all these can be high-quality, home-produced options.
