President Donald Trump’s use of tariffs has formed an unlikely alliance among Kentucky’s top leaders, including Democratic Governor Andy Beshear and Republican Senators Mitch McConnell and Rand Paul, who are concerned about the impact on the bourbon industry. The governors and senators have expressed their opposition to escalating trade wars, which could harm American-made whiskey exports.
The European Union is set to impose tariffs on American beef, poultry, bourbon, and motorcycles, as well as peanut butter and jeans. This move poses a significant threat to Kentucky’s thriving bourbon sector, which has seen its exports surge nearly 60% in the last three years. The EU is the biggest international market for American whiskey.
Kentucky-based distiller Tom Bard said that trade wars have halted new purchase orders from eastern Europe and Canada, where his brand was gaining momentum. “We’re about to start momentum and now it’s basically been stopped in its tracks,” he said.
The governor and senators are calling on Trump to reconsider his tariff policies, which they believe will harm American consumers and businesses. Governor Beshear stated that Trump started the trade war and that other countries would retaliate, leading to higher prices for Americans. Senator McConnell emphasized that tariffs drive up costs for goods and services, affecting American consumers.
Senator Paul also expressed his concerns about the impact of tariffs on Kentucky’s economy, stating that it’s a “big mistake” that affects various industries beyond bourbon production. The state has seen significant growth in exports, with $47.7 billion worth of products shipped globally in 2024, up 18.7% from the previous year.
Source: https://apnews.com/article/tariffs-kentucky-bourbon-6642cd04446127ac6e38a49cadf53ee0