Trump Second Administration

‘Americans Will Suffer’: Major Kentucky Industry Blames Trump’s Tariffs For Massive Financial Disaster, Job Losses

We'll see if Trump cares.

Kentucky’s bourbon industry is, simply put, legendary. Bourbon whiskey is not like tequila or champagne, in that it can only be made in a particular region to be considered “true” bourbon. But its association with the American south — specifically Kentucky — is so strong that most people around the world consider anything made with bourbon to be a uniquely Southern American drink.

In fact, the last time Kentucky bourbon was affected by American federal politics was more than 60 years ago, when Congress specifically declared it “a distinctive product of the United States.”

But it’s back in the spotlight now, and they have Donald Trump to thank for it.

I can’t help but wonder if the 62% of voters who pulled the lever in Kentucky for President Trump didn’t know about how his tariffs would affect them, or if they, like many of Trump’s voters, just didn’t think he’d follow through.

Either way, they’re now in the “find out” stage. In fact, just yesterday, the Kentucky Distiller’s Association issued a statement warning of the dire effects of the retaliatory tariffs from Canada implemented just hours after Trump’s 25% tariff on all Canadian goods took effect:

“Unfortunately, the return of retaliatory tariffs on American whiskey will have far-reaching consequences across Kentucky, home to 95% of the world’s Bourbon,” Kentucky Distillers’ Association President Eric Gregory wrote. “This means hard-working Americans — corn farmers, truckers, distillery workers, barrel makers, bartenders, servers and the communities and businesses built around Kentucky bourbon will suffer.”

Indeed, it’s already happening in Canada. American liquor is literally being removed from the shelves in a video showing a Liquor Control Board of Ottawa store. The LCBO is the world’s largest purchaser of liquor.

If it seems counterintuitive to not just try and sell off what they have in stock and then not order more, understand: Many sales agreements between manufacturers of premium products and retailers don’t involve the retailer buying them outright, like they might milk or eggs. Often the manufacturer gets their cut when the product is sold in the retail store.

All of this means not just billions of dollars in lost sales for makers like Jim Beam, Elijah Craig, and Buffalo Trace, but lost jobs as well. And when a major manufacturer slows production because the world’s largest buyer is no longer buying, the neighborhoods and sometimes entire towns populated with people who work there are out of luck.

It’s not just the whiskey, either. Jack Daniels may be made in Lynchburg, Tennessee, but Brown-Forman, the parent company of Jack Daniels, anticipated the tariffs and closed their barrel making operation in Louisville, Kentucky, laying off 640 employees. That hurts both states.

Still not convinced this is an issue? Have another video from a different store:

Ontario Premier Doug Ford says there will be no American booze available for wholesale or retail, bars, restaurants, or online services until the 25% tariff from Trump is lifted.

Quebec Premier François Legault confirmed the same treatment, saying that the Société des alcools du Québec will be replacing American goods with Quebecois and Canadian spirits.

British Columbia is handling it a little differently, instead pulling American imports from just the red states that went for Donald Trump in 2024 and leaving products from places like Washington and California.

BC Premier David Eby issued a statement as the new policy was announced: “We didn’t ask for this fight that the president has brought to Canada and to British Columbia. But I’ll tell you this, we’re not going to shrink from it. The president wants to hurt Canadians if he wants to hurt British Columbians. Then we have no choice but to respond in kind to the United States.”

What all of this is building up to is an unnecessary trade war that can only hurt working people and consumers. Ultimately, the manufacturers of products both in America and in Canada will find other places to sell their wares. But the cost increases and job losses only hurt the lowest people on the totem pole — you and I.

Well, not me as much. I live in a blue state and besides, I don’t drink. But when I did, I favored a classic Old Fashioned poured with Buffalo Trace. That’s not something you’re going to find in a bar in Toronto, Montreal, or Vancouver until Donald Trump comes to his senses.

meet the author

Andrew is a dark blue speck in deep red Central Washington, writing with the conviction of 18 years at the keyboard and too much politics to even stand. When not furiously stabbing the keys on breaking news stories, he writes poetry, prose, essays, haiku, lectures, stories for grief therapy, wedding ceremonies, detailed instructions on making doughnuts from canned biscuit dough (more sugar than cinnamon — duh), and equations to determine the airspeed velocity of an unladen swallow. A girlfriend, a dog, two cats, and two birds round out the equation, and in his spare time, Drewbear likes to imagine what it must be like to have spare time.

Comments

Comments are currently closed.