Kentucky bourbon producers again find themselves in the crosshairs as a target for retaliation after President Donald Trump ordered new tariffs on U.S. neighbors Canada and Mexico.
Canada, a key export market for American spirits, responded to this latest outbreak of trade warfare by initially ordering tariffs on American imports including beverages starting Tuesday.
The latest back-and-forth is a sobering prospect for Kentucky bourbon producers and their supporters. The bourbon industry pumps $9 billion into the Bluegrass State’s economy each year, creating more jobs and attracting more tourists than ever before, according to a study released last year.
Kentucky distillers produce 95% of the global bourbon supply, according to the Kentucky Distillers’ Association.
Before the monthlong reprieve was announced late Monday, Canada, a key export market for American spirits, responded to this latest outbreak of trade warfare by initially ordering tariffs on American imports including beverages. Some authorities in several provinces had planned to remove American liquor brands from government store shelves.
President Trump put in place a 30 day pause for tariffs on Tuesday, but as of now multiple areas of Canada have not said if they will keep American alcohol on shelves.
