The Unlikely Bipartisan Alliance Against Tariffs in Kentucky
In the heart of Kentucky, a rare bipartisan alliance has emerged among the state’s top leaders, united by their concern over the escalating trade wars sparked by President Donald Trump’s aggressive use of tariffs. Democratic Gov. Andy Beshear and Republican Sens. Mitch McConnell and Rand Paul have joined forces to voice their disapproval of the growing trade disputes, which threaten to devastate Kentucky’s iconic bourbon industry. The state, which has been a solid Republican stronghold since Trump’s election in 2016, is now witnessing its leaders stand together against the president’s trade policies, fearing the economic fallout for their state.
The Bourbon Industry in the Crossfire of Trade Wars
Bourbon distillers, who have invested significant time and resources in cultivating international markets, particularly in Europe and Canada, are now bracing for the worst. The escalating tit-for-tat trade disputes have left them worried about becoming “collateral damage” in a conflict that shows no signs of abating. Trump’s recent threat to impose a 200% tariff on European wine, Champagne, and other spirits has further heightened tensions. If the European Union follows through with its planned tariff on American whiskey, Kentucky’s bourbon sector, which has enjoyed remarkable growth in recent years, could face severe consequences.
The Economic Ripple Effects of Tariffs
The implications of these trade wars extend far beyond the bourbon industry, affecting a wide range of sectors in Kentucky, including auto manufacturing, aerospace, and even agriculture. McConnell, the former Senate Republican leader, has emphasized that millions of American jobs, including thousands in Kentucky, depend on free and fair trade policies. “Tariffs drive up the cost of goods and services, and American consumers ultimately pay the price,” McConnell said, voicing his disapproval of Trump’s approach. Paul has echoed similar sentiments, calling the tariff wars a “big mistake” that has hurt Kentucky’s economy.
Kentucky’s Record Exports and the Threat of Retaliation
Despite the challenges posed by the trade disputes, Kentucky has continued to thrive as an export powerhouse. In 2024, the state set a record with $47.7 billion in exports, an 18.7% increase from the previous year. Aerospace products, motor vehicles, and pharmaceuticals have been among the leading exports. However, the state’s world-renowned bourbon industry, which has seen a 60% surge in exports to the EU since tariffs were suspended three years ago, is now under threat. Retaliatory measures by Canada and the EU, such as removing American spirits from liquor store shelves and imposing tariffs on American whiskey, bourbon, and other products, have raised alarms among distillers.
The Impact on Local Businesses and Global Markets
For small businesses like The Bard Distillery in western Kentucky, the trade wars have already begun to take a toll. Owner Tom Bard, who had been on the verge of expanding his brand in eastern Europe and Canada, has seen new purchase orders put on hold due to the uncertainty created by the tariffs. “We were just starting to gain momentum, and now it’s been stopped in its tracks,” Bard said, reflecting the frustration felt by many in the industry. The EU, which is the largest international market for American whiskey, has already begun to impose tariffs on American beef, poultry, bourbon, and motorcycles, further exacerbating the situation.
A Call to Action for a More Balanced Trade Policy
As the trade disputes continue to escalate, Kentucky’s leaders are urging a more balanced approach to trade policy. Beshear, who is being touted as a potential presidential contender in 2028, has been particularly vocal in his criticism of Trump’s actions. “President Trump started this trade war, and we all knew that if he did, other countries would have to respond,” Beshear said. “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.” The bipartisan alliance in Kentucky serves as a stark reminder of the urgent need for a more nuanced and cooperative approach to international trade, one that protects American industries without inflicting unnecessary harm on consumers and businesses.
