A trade war between the US and its neighboring countries Canada and Mexico is leaving a sour taste on the bourbon industry in Kentucky, with exports already slumping amid an earlier dispute during President Donald Trump’s first term. The prospect of new tariffs has sparked concerns among elected leaders and industry officials, who fear for the livelihoods of distilleries and jobs that pump $9 billion into the state’s economy each year.
Kentucky produces 95% of the world’s bourbon supply, with iconic brands like Wild Turkey and Four Roses calling Lawrenceburg home. However, Canada, a key export market, has initially ordered tariffs on American imports, including beverages, which could lead to the removal of American liquor brands from government store shelves.
“I think it’s time for our nation to stand up for our nation,” said local resident Gary Chilton, expressing faith in Trump’s tariff strategy as a negotiating tool. However, Democratic Governor Andy Beshear warned that tariffs would hurt working families and segments supporting the industry, including farmers and barrel-makers.
Republican U.S. Rep. Andy Barr remains supportive of Trump, while Republican U.S. Sen. Mitch McConnell voiced concerns about the impact on jobs and consumer prices. The bourbon industry hopes for a peaceful resolution, with the Kentucky Distillers’ Association commending Trump and his counterparts for suspending tariffs for 30 days.
However, the threat of higher tariffs from the European Union looms large, with a 50% rate set to be reinstated in late March if nothing is done. The return of tariffs would be devastating for the industry, which already faces massive inventories of aging whiskeys awaiting bottling.
Source: https://apnews.com/article/kentucky-bourbon-tariffs-66ee9eab0230b1b5a074b8bafdcbd93f