Kentuckians voted overwhelmingly in favor of Trump, whose campaign capitalized on inflation and economic worries to help propel major Republican wins. And while it's too early to know the full range of policies the administration will pursue — or their effect on Kentucky — at least two areas have prompted questions: Trump's planned tariffs and his negative statements about alternative energy.
The latter could slow down investment in electric vehicles, a market governor Andy Beshear has aggressively courted as the state scored big economic wins with two major EV battery plans. The former could affect taxes on bourbon going overseas, recharging retaliatory tariffs in Europe — which has set its sights on bourbon in the past.
Gov. Andy Beshear says he hopes to convince the incoming administration of the importance of jobs linked to those industries and their part in the state's overall economic growth.
"I hope that the policies of of the incoming administration will be positive for it. If not, my job is to work with our businesses, to make sure that we can make the connection that we can more localize their supply chains, that we can address any type of policies that might hurt those industries," he told WUKY.
Beshear made those comments just minutes after unveiling a statewide campaign called "Our New Kentucky Home," meant to highlight changes like Kentucky's investment in EVs and growing tourist attractions.
Should the Trump administration move ahead with heavy tariffs, the Wall Street Journal reports the EU will likely follow a playbook similar to its previous retaliation during Trump’s first term – targeting a range of U.S. products, including those coming from political strongholds for Republicans.
Outgoing Senate Majority Leader Mitch McConnell has said it’s a economic strategy he doesn’t favor.
"I'm not a fan of tariffs," he told reporters prior to the election. "They raise the prices for American consumers. I'm more of a free trade kind of Republican that remembers how many jobs are created by the exports."
President-Elect Trump argues his policy would bolster manufacturing jobs in the U.S.
Under the Biden administration, U.S. and EU officials had hammered out a deal would avoid a 50% tax on bourbon shipments to Europe – pushing back the date until March 31, 2025.
It’s uncertain how that deadline and Trump’s proposed across-the-board tariffs up to 20% may play out, leaving some in the bourbon industry anxious about what comes next.
