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'Hard-working Americans... will suffer': Kentucky industries, leaders react to tariffs

The Angel's Envy distillery and visitors' enter in Louisville, Ky., Monday, Feb. 3, 2025. (AP Photo/Timothy D. Easley)
Timothy D. Easley/AP
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FR43398 AP
The Angel's Envy distillery and visitors' enter in Louisville, Ky., Monday, Feb. 3, 2025. (AP Photo/Timothy D. Easley)

As the Trump administration's tariffs targeting Canada, Mexico, and China rattle markets and spark retaliatory tariffs, Kentucky Gov. Andy Beshear is labeling any effects consumers feel the "Trump Tax." But Kentucky Republicans haven't exactly been enthusiastic about the trade tactic either.

Hours after the tariffs took effect, Beshear took to social media to urge voters to demand the administration make good on promises not to raise prices — as many economists predict will happen — but lower them.

"Just wait, everything from automobiles to other major purchases you need to make are going to be that much more expensive," he said. "One person make this decision, it's a bad decision, and they can ultimately undo this decision," Beshear said in a video post.

Meanwhile, Kentucky Distillers' Association President Eric Gregory says the tariffs mean "hard-working Americans — corn farmers, truckers, distillery workers, barrel makers, bartenders, servers and the communities and businesses built around Kentucky bourbon will suffer."

Sen. Rand Paul has said sectors of Kentucky's economy are still dealing with the fallout from the tariffs introduced during Trump's first term, telling Fox after the debut of this new round of tariffs he's not hearing many cheers from the commonwealth's main moneymakers.

"Almost all of our major industries in Kentucky come to me and say they don't want tariffs because trade has made us wealthier as a state and as a country," he said.

Paul has praised the concessions Trump received from Canada and Mexico when the tariffs were first announced, but then quickly walked back earlier this year. With the tariffs back on, the administration is now hinting at carve-outs for some industries, including automakers.