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Republican Senator Rand Paul of Kentucky warned that President Donald Trump’s tariffs could hit consumers this fall, with the state’s signature bourbon industry among those most at risk.
“We will see the ramifications of tariffs this fall,” Paul told FOX Business, adding that America’s beloved native spirit, bourbon, is often an easy target in trade wars.
FROM BOURBON TO BORDEAUX: TRUMP’S TARIFFS SPILL INTO GLOBAL BOOZE MARKETS
Amid a tit-for-tat trade dispute during Trump’s first term, the European Union targeted the home state of Senate Republican Leader Mitch McConnell by slapping a 25% retaliatory tariff on bourbon.
“The bourbon industry absolutely hates it,” Paul said during a discussion at the Cato Institute, a Washington, D.C.-based libertarian-leaning think tank. “When I go home, I’ve yet to come across a businessman or woman who says, ‘Oh, I love the tariffs.’ It’s the opposite,” he added.
Kentucky is the epicenter of the bourbon industry, producing 95% of the world’s supply, supporting over 23,000 jobs and generating $9 billion annually, according to the Kentucky Distillers’ Association.
Trade uncertainty continues to pour into global booze markets, with the industry increasingly sidelined in major trade agreements.
AMERICAN DISTILLERS HOPING FOR FAVORABLE TRADE DEALS AMID TRUMP’S TARIFFS: ‘INDUSTRY SHOULD BE IMMUNE’
Over the weekend, Trump announced a deal with the European Union, but it notably left out any resolution for the wine and spirits sector.
“It is extremely disappointing and utterly exasperating that the U.S. and EU have not yet come to an agreement on spirits,” wrote Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, a Washington-based trade association.
When it comes to booze, Europe is America’s top client, importing approximately $1.2 billion in U.S. spirits in 2024, according to figures provided by the Distilled Spirits Council of the United States.
Alcohol also ranked among the European Union’s top exports to the U.S., totaling approximately $10.5 billion in 2024, according to Eurostat data.
Swonger previously has said that eliminating tariffs or placing spirits on a tariff exemption list would be an ideal outcome of the trade negotiations.
When asked whether bourbon could be placed on a tariff exemption list, Paul said he hasn’t had much success in the past.
“I can tell you that in the last Trump administration, businesses would call me wanting an exemption, and I didn’t have much luck getting exemptions for anybody,” Paul told FOX Business.
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