Kentucky (wdky) – Kentucky's bourbon industry is enduring potential economic fallout after President Trump imposed tariffs on imports from Canada, China and Mexico this week. I vowed to retaliate.
Governor Andy Beshear (D) has called tariffs “three parts of inflation” that could have widespread effects on both consumers and businesses.
“His tariffs in Canada and Mexico are trying to raise the costs of vegetables, fruits and meat at grocery stores.
The tariffs include a 25% tax on imports from Canada and Mexico, and Trump, which was imposed on China last month, will double the 10% tariff.
The move has sparked concern across the industry, including Kentucky, where Bourbon is a $9 billion signature business.
The Kentucky Distilled Spirit Association (KDA) said Tuesday that retaliatory tariffs “produce widespread consequences across the state.”
“That means hardworking Americans and other hardworking Americans will suffer from Corn Farmers, truckers, distillery workers, barrel makers, bartenders, servers and communities and businesses built around Kentucky Bourbon,” a statement from KDA President Eric Gregory said. “As a unique product of the United States, bourbon cannot be made anywhere else in the world. It's truly America's only native spirit. Bourbon jobs are American jobs and they grow bourbon jobs by opening markets around the world.”
Gregory's statement claims that Bluegrass State stills produce 95% of the world's bourbon supply, and are responsible for more than 23,000 jobs and $2.2 billion in “pay and benefits.”
The previous and last parts of Trump's tariff plans “have risks growth” in the bourbon industry, Gregory said he expects American trading partners to remove American spirits from the shelf and look for other suppliers for “the next few years.”
Tariffs are trapped in a game waiting for many of the bourbon industry, and are uncertain about the long-term impact. Along with life in Kentucky Bourbon, Mark Rucker has expressed concern about the potential disruption.
“If these distilleries can't be generated, if demand drops due to tariffs, yeah, I think we can see the impact,” Rucker added.
This impact could ripple through related industries such as restaurants and barrel houses.
“I think these industries, which are not necessarily distilleries, but are connected to lifeline distilleries, unfortunately, can have a negative impact from that,” Rucker said. Unfortunately, closing that window can have a rather large impact on these small brands. ”
Camille Hantla of Wdky contributed to this story.
