Topic: US News
by MPeriod
Posted 8 months ago
This article covers:
President Donald Trump’s aggressive use of tariffs has sparked a rare collaboration among Kentucky's prominent political figures. Democratic Governor Andy Beshear and Republican Senators Mitch McConnell and Rand Paul are all expressing their worries over potential trade wars that could hurt the bourbon industry.
Bourbon distillers, who have invested significantly in markets across Europe and Canada, fear they may suffer as "collateral damage" in escalating trade disputes. Recently, Trump threatened a 200% tariff on European wines and spirits in response to a proposed tariff on American whiskey by the European Union.
In a state that has backed Trump since his first election, both the governor and the senators are united in their criticism of the ongoing tariff situation. Governor Beshear, who could run for president in 2028, has been notably vocal.
“President Trump started this trade war, and we all knew that if he did, other countries would have to respond. What they’re going to do is raise prices on the American people. A president who was elected to lower prices is actively taking steps that are raising prices.”
Former Senate leader Mitch McConnell emphasized the importance of trade for American jobs, including many related to bourbon production:
“I’m all for pushing back on predatory trade practices and leveling the playing field for American producers, but I’m not a fan of tariffs. At the end of the day, tariffs drive up the cost of the goods and services we all rely on, and American consumers pay the price.”
Senator Rand Paul has criticized the tariffs as detrimental to Kentucky's economy.
“Nobody in Kentucky is coming up to me and saying, ‘please put tariffs on things.’ We need to back away from this.”
Kentucky set a record in 2024 with exports totaling $47.7 billion, an increase of 18.7% from 2023. Notable exports include:
Despite the strong export figures, bourbon has become a primary target for retaliatory actions. Canadian liquor stores have begun to remove American spirits, while the EU is set to increase tariffs on American products, including bourbon.
This poses a significant threat to a successful American product that has gained popularity worldwide. In the last three years of tariff suspension, American whiskey exports to the EU increased by nearly 60%.
Tom Bard, a craft distiller in Kentucky, reports that trade wars have stalled his business growth opportunities in Eastern Europe and Canada:
“We’re about to start momentum and now it’s basically been stopped in its tracks.”
Bard, along with his wife Kim, owns The Bard Distillery in Muhlenberg County, Western Kentucky.