Kentucky Distillers' Association responds to new tariffs: 'Hard-working Americans … will suffer'

KENTUCKY (WDKY) — Kentucky’s bourbon industry is bracing for potential economic fallout after President Donald Trump imposed tariffs on imports from Canada, China and Mexico this week — and after all three countries vowed to retaliate with tariffs of their own on U.S. exports.

Gov. Andy Beshear has called the tariffs a “trifecta of inflation,” which could have widespread effects for both consumers and businesses.

"His tariffs on Canada and Mexico are going to raise the cost of vegetables, fruits, and meat at your grocery store, the extra amount you pay. That’s the Trump tax," Gov. Beshear said.

The tariffs include a 25% tax on imports from Canada and Mexico, along with a doubling of the 10% tariff Trump imposed on China last month. 

The move has sparked concerns throughout industries, particularly in Kentucky, where bourbon is a $9 billion signature business.

Kentucky Distillers' Association (KDA) on Tuesday said retaliatory tariffs would have "far-reaching consequences across the state."

"That means hard-working Americans — corn farmers, truckers, distillery workers, barrel makers, bartenders, servers and the communities and businesses built around Kentucky bourbon will suffer," the statement, from KDA President Eric Gregory, said. "As a distinctive product of the United States, bourbon cannot be made anywhere else in the world. It truly is America's only native spirit. Bourbon jobs are American jobs, and we grow bourbon jobs by opening markets across the globe."

Gregory's statement alleged that distillers in the Bluegrass State produce 95% of the global bourbon supply and are responsible for more than 23,000 jobs and $2.2 billion "in salaries and benefits."

The back-and-forth over Trump's tariff plan will "jeopardize growth" of the bourbon industry, Gregory said, predicting that America's trading partners will remove American spirits from shelves and seek other suppliers for "years to come."

The tariffs have left many in the bourbon industry stuck in a waiting game, uncertain about the long-term effects. Mark Rucker, with Kentucky Bourbon Life, voiced concerns about potential disruptions.

"If these distilleries aren't able to produce, if the demand goes down because of the tariffs, then yeah, I think we could see the impacts," Rucker added.

The impact could ripple through related industries such as restaurants and barrel houses. 

"These industries that aren't necessarily a distillery but are connected to the distilleries for their lifeblood, unfortunately, I think we could see some negative impacts from that as well,” said Rucker. "Especially with the smaller producers who are really taking the time and effort to open up that European market for themselves. Unfortunately, if that window closes down, it could have a pretty significant effect on these smaller brands."

WDKY's Camille Hantla contributed to this story.