By Blake Jackson
Kentucky business leaders are sounding the alarm on the effects tariffs could have on the state’s agriculture and bourbon industries.
At a recent summit hosted by the Kentucky Chamber of Commerce in Lexington, experts discussed the risk of trade disputes and global economic shifts.
Soybeans were a central focus. China, the leading buyer of U.S. soybeans, could reduce imports if trade tensions rise. With over half of U.S. soybeans exported—and most going to China—a trade war would hurt farmers significantly.
“Costs have inflated a lot, and our commodity price is down about 40% in the last three years. So, we're looking at higher cost and lower sales price for our product. And that is a very bad combination when you add a trade war to it,” said Caleb Ragland.
Without a trade agreement before February, when soybean shipping season begins, farmers could face a steep decline in exports.
Kentucky’s bourbon industry, responsible for 95% of global bourbon production, also faces uncertainty.
Tariffs have already caused some Canadian provinces to pull Kentucky bourbon from store shelves. A trade war could reduce luxury spending on premium spirits.
Jack Mazurak from the Kentucky Distillers Association explained that consumers may cut back if they feel economic pressure. “If people are not feeling that the economy is supportive of them, or they're not getting ahead, are they going to buy a $60 or $100 bottle of bourbon, which is not a grocery, which is not a staple. And that can ripple through to tourism,” he said.
Other challenges include changing consumer habits, such as Gen Z drinking less and rising interest in THC beverages. The bourbon industry is exploring global partnerships to adapt.
Leaders stressed the importance of proactive trade solutions and industry collaboration to safeguard Kentucky’s economic future.
Photo Credit: istock-urpspoteko
Categories: Kentucky, Business, Crops, Soybeans