(LEX 18) — 25% tariffs on all products from Canada and Mexico were set to go in effect Tuesday, but have been paused for 30 days.
If they do happen, they could have a big impact on Kentucky's economy and the bourbon industry.
We reached out to the Kentucky Distillers Association as well as several local distilleries, who are not ready to talk about the tariffs just yet, mainly because they aren't sure what is going to happen.
With that said, Kentucky lawmakers are saying this could have a big impact on Kentucky's $9 billion dollar bourbon industry, along with thousands of Kentuckians and their families.
Bourbon is one of Kentucky's signature industries that generates more than 23,000 jobs.
Several Kentucky lawmakers have spoken out about the tariffs, including Governor Andy Beshear, who sent a letter to Kentucky representatives and senators on Monday saying in part quote:
"Harmful tariffs are putting our bourbon industry in danger, threatening the livelihood of over 23,000 Kentuckians and their families. I'm asking our congressional delegation to stand with me and fight for the folks who sustain our signature industry."
Over the weekend, President Donald Trump signed three executive orders imposing a 25% additional tariff on imports from Canada and Mexico, along with a 10% additional tariff on imports from China. On Monday, Trump said for one month, he is pausing tariffs on goods entering the U.S. from Mexico in an attempt to reach a deal.
Canada's Prime Minister Justin Trudeau posted to X Monday afternoon saying quote:
"I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.
In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.
Proposed tariffs will be paused for at least 30 days while we work together."
Tariffs are part of President Trump's strategy to increase tax revenue and protect jobs, but senators like Mitch McConnell are worried his plan could increase the cost of goods for Americans.
"It will drive the cost of everything up," said Sen. Mitch McConnell during an interview with 60 minutes. "In other words, it will be paid for by American consumers."
Senator Rand Paul has also been vocal about Trump's tariffs, posting to X saying quote:
"Tariffs are simply taxes. Conservatives once united against new taxes. Taxing trade will mean less trade and higher prices."
In the letter sent to Kentucky's congressional delegation from Governor Beshear, it states the bourbon industry creates more than 5600 new jobs each year.
The Kentucky Bourbon Trail is also the biggest driver of tourism for Kentucky, attracting more than 22.5 Million visitors each year.
