The prospect of retaliatory tariffs already looms over one of Kentucky's key industries.
While the Biden administration successfully pressed pause on a whopping 50% European Union tariff on bourbon, that temporary deal is over on March 31, 2025. The countermeasure dates back to 2018, when the EU slapped taxes on American whiskeys as a way of punishing a signature U.S. industry in response to American tariffs on aluminum and steel.
In Sen. Mitch McConnell's backyard, no less.
But now, with the clock ticking down again and promises of more tariffs from the incoming Trump administration, Kentucky Distillers Association President Eric Gregory tells WDRB it's making for an uneasy holiday season for bourbon producers.
"So it's coming at a time where we're sitting on more bourbon than ever before, a lot of it expected to go overseas and then you stick a 50% tax on that. It can get ugly. It can get ugly real fast.," he told the Louisville station.
Gov. And Beshear is holding out hope the new Trump administration may feel the pressure to back off at least some tariff threats if it results in higher prices and broken campaign promises.
"My hope is that a president that ran on decreasing inflation and making things more affordable won't put policies into place that will raise prices, because that's what happens with with tariffs," he said.
Kentucky two leading voices in the Senate, Mitch McConnell and Rand Paul, have both expressed firm opposition to the economic strategy — with the latter vowing to try to convince his Senate colleagues to retake some control over the taxes.
"I will fight and I have a bill to remove some of that power and bring it back to Congress," Paul told WUKY in early December.
Should exports dry up, however, Kentucky distilleries could wind up with ballooning inventory, layoffs and even closures. In the meantime, at the top of the industry's holiday wish list is a deal heading off that scenario.