Missouri House Bill 1041 (HB 1041), if passed, would impose a $1.86 per barrel tax on malt liquor imported from outside the United States, while domestic producers pay just $0.62 per barrel. That’s a clear example of a state-imposed tariff—something forbidden under the U.S. Constitution.
Over 30 years ago—in 1994—the Supreme Court of the United States held in Barclays Bank PLC v. Franchis Tax Board of California that “[a]bsent congressional approval, … a state tax … will not survive Commerce Clause scrutiny if … [it] discriminates against interstate commerce.”
The Commerce Clause of the U.S. Constitution prevents states from enacting laws that discriminate against out-of-state or foreign commerce, especially taxation laws. In Barclays Bank PLC, for example, the Court emphasized that state taxes impacting foreign commerce are subject to the highest scrutiny and almost always fail.
And yet, even though the courts will likely strike down HB 1041 as unconstitutional, by that point, the damage will already be done. American companies that do business globally, including right here in Missouri, will pay the price while the law is litigated. Many Missouri-based beverage importers, distributors, and logistics firms stand to be hit hard. These are American businesses employing American workers. This bill doesn’t punish foreign beer makers. It punishes the American companies that import their products and the Missouri families that rely on those jobs.
Under longstanding treaties, such as the General Agreement on Tariffs and Trade (GATT), the United States has promised that once goods enter our market, they will be treated the same as domestic products. That’s known as “national treatment,” and it’s a bedrock principle of international trade law. HB 1041 violates that promise, and foreign governments will notice. Retaliatory tariffs could target American-made products, including Missouri’s own exports.
That’s why this bill could not come at a worse time. HB 1041 undermines the U.S. government’s role in managing international trade during a critical moment.
President Trump has made reshaping global trade a cornerstone of his leadership. He is fighting to get better deals for American workers. However, state lawmakers are undercutting President Trump’s authority, as well as his ability to speak with one voice on international trade. That power lies with the executive and Congress—not with 50 separate state legislatures. Missouri stepping into that arena only weakens President Trump’s negotiating position and invites confusion and chaos.
Missouri lawmakers should not gamble with American jobs, violate international agreements, or pick a constitutional fight they’re guaranteed to lose. There are ways to support our local beer industry without crossing these legal and economic red lines like HB 1041 does. Missouri lawmakers should reject this bill so that it does not do lasting damage to the American economy.
Reeves Law LLC is a solo appellate lawyer based in St. Louis. He is a former Assistant Missouri Attorney General
