Kentucky’s bourbon industry would take hit if Canada stopped buying

(3 Feb 2025)
RESTRICTION SUMMARY:

ASSOCIATED PRESS
Louisville, Kentucky — 3 February 2025
1. Bourbon city flag in Louisville
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2. SOUNDBITE (English) Rep. Morgan McGarvey, (D) Kentucky:
“Kentucky’s largest export market is Canada. And of course, our spirits industry seems to always get targeted by these tariffs.”

ASSOCIATED PRESS
ARCHIVE: Loretto, Kentucky — 20 June 2019
3. Maker’s Mark bourbon assembly line

ASSOCIATED PRESS
Louisville, Kentucky — 3 February 2025
++PARTIALLY COVERED++
4. SOUNDBITE (English) Rep. Morgan McGarvey, (D) Kentucky:
“95% of the world’s bourbon is made right here in the Commonwealth of Kentucky. The impacts are far reaching. This is going to hurt everyone in Kentucky, the people from the people who who grow the corn that goes into burden, the people who put it in the in the barrel and in the bottle, to the truck drivers who drive it to the different stores and locations. These tariffs by Donald Trump and anticipated actions by the other countries are going to hurt people in Kentucky.”
5. Exterior of Angel’s Envy distillery
6. Wide of truck loading bourbon
7. Lid of bourbon truck

ASSOCIATED PRESS
ARCHIVE: Loretto, Kentucky — 20 June 2019
8. Bourbon mash in large vats

STORYLINE:
In the rolling hills of Kentucky where most of the world’s bourbon supply is crafted, the prospect of a new trade war feels like an aching hangover that won’t go away.

Kentucky bourbon producers again find themselves in the crosshairs as a target for retaliation after President Donald Trump ordered new tariffs on U.S. neighbors Canada and Mexico. On Monday, Trump and the leaders of Canada and Mexico put their planned tariffs on hold for a month to allow further negotiations. But the lack of a final resolution has left some elected leaders and industry officials concerned about one of Kentucky’s iconic spirits.

American whiskey exports slumped badly amid an earlier trade dispute during Trump’s first term.

Before the monthlong reprieve was announced late Monday, Canada, a key export market for American spirits, responded to this latest outbreak of trade warfare by initially ordering tariffs on American imports including beverages. Some authorities in several provinces had planned to remove American liquor brands from government store shelves.

The latest back-and-forth is a sobering prospect for Kentucky bourbon producers and their supporters. The bourbon industry pumps $9 billion into the Bluegrass State’s economy each year, creating more jobs and attracting more tourists than ever before, according to a study released last year. Kentucky distillers produce 95% of the global bourbon supply, according to the Kentucky Distillers’ Association.

Bourbon production is part of the economic lifeblood of Lawrenceburg, a short distance from the distilleries for well-known brands Wild Turkey and Four Roses. In a place where support for Trump runs deep, some said they had faith in wielding tariffs as a way of gaining leverage in negotiations with other countries.

“I think it’s time for our nation to stand up for our nation. And that’s what we’re doing right now,” said Lawrenceburg resident Gary Chilton as he ran afternoon errands. “Other nations have taken advantage of us for so long. It’s a negotiating tool. It’ll get worked out.”

“A state that voted for this president by more than 30 points is going to feel the impact of these actions,” Beshear said in video posted to social media Sunday.

Barr said he was committed to protecting the bourbon industry, "a vital engine of jobs and economic growth.”

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