FRANKFORT, Ky. (LEX 18) — In Kentucky, bourbon is more than just a drink; it's an experience. The Kentucky Distillers' Association president, Eric Gregory, says this has kept him in this industry for nearly two decades.
“It is, yea I mean we've been doing this for over 200 years in Kentucky so bourbon is ingrained in our being,” says Gregory.
Bourbon is a $9 billion industry in the Commonwealth. It's created more than 23,000 jobs. It's the bourbon, but it's also farming, barrel and glass makers, distributors, and tourism. President-elect Donald Trump has recently proposed new tariffs, which some industries fear will cause retaliatory tariffs. However, in 2018, Gregory said the industry saw its first tariff blow from the European Union.
He says, "We lost hundreds of millions of dollars in exports, and we've just been recovering from that over the past couple of years to get back where we were at over a half billion dollars in exports. Now a lot of people think those tariffs went away, unfortunately most of them were just delayed until after the election."
Last year LEX 18 reported on how Senators Mitch McConnell and Rand Paul called for a removal of retaliatory tariffs on wine and spirits. In March 2025, Gregory says that 25% will double, which could be crippling to the industry.
"I don't even want to think about what a 50% tariff would do and more importantly its not just hurting the distilleries a 50% tariff would hurt all the supply chain, all the people in Kentucky who depend on the bourbon industry,” says Gregory.
Thursday the KDA presented to the interim joint committee on tourism, small business, and information technology. They showed how much bourbon has helped build the state and how KDA has grown from 6 members to 70. They also shared concerns on how tariffs could tear it all down.
In his presentation, Gregory said, "One other reason that we joined the World Spirit Alliance is to try to work with our whiskey partners around the world to get back to zero tariffs that we were before and also to increase our presence globally."
All bourbon is whiskey, but not all whiskey is bourbon. Gregory believes that Kentucky has a uniquely special craft to offer, and they want to see it continue to grow.
He says, "Every sip of bourbon is a sip of Kentucky. You know hospitality, rolling green hills, white fences horses, you name it, it really started to take hold. And we start seeing more and more people come here to really discover how great the bluegrass is."
