Kentucky Gov. Matt Bevin said he didn’t expect much impact from those tariffs the European Union is imposing on bourbon. “I don’t see that this will have long-term trade implications … especially as it relates to bourbon. People in Europe still love bourbon and they’re going to still buy it,” Bevin said on CNBC’s Squawk Box.
The Kentucky Distillers Association disagrees, as does Senate Majority Leader Mitch McConnell (R-Ky.). In a statement, KDA said, “There are no winners in a trade war, only casualties and consequences. The KDA and its members believe that tariffs and retaliatory measures will have a significant impact on Bourbon investment, employment and economic growth throughout the Commonwealth.”
McConnell earlier warned that a trade war prompted by President Trump’s tariffs on steel and aluminum “will not be good for the economy.”
“As a uniquely American product, bourbon and distilled spirits accounted for more than $450 million in Kentucky exports worldwide in 2017, a 23 percent increase over the previous year. Of that, nearly $200 million was exported to EU countries, which has been growing at a rate topping 10 percent annually over the last five years,” said KDA president Eric Gregory. “An extended trade war would not only harm our iconic industry, but also Kentucky’s farm families, cooperages, glass and other suppliers, hospitality and tourism partners, and ultimately, our loyal consumers through higher prices and limited availability.”