Beshear says trade war with Canada is impacting KY’s bourbon, coal industries

Kentucky Gov. Andy Beshear has asked President Donald Trump to end the trade war with Canada that is impacting some of the state’s most prominent industries.

On Aug. 22, Trump issued a 50% tariff on $27.6 billion of Canadian goods. The country’s northern neighbors retaliated by issuing a similar tariff that will go into effect Tuesday, Sept. 8.

Canadian Prime Minister Mark Carney said trade talks between the two countries could resume if Trump’s administration should any real interest in negotiating, as Trump’s proposals would wipe out Canadian industries, according to Spectrum News.

Beshear called Trump’s tariff and trade policies on Canada harmful, and said they are the source of blame for economic hardship for American families. He sent a letter to Trump Wednesday asking the president to rescind the tariff.

“It is the American consumer, not the foreign exporter, who pays the price for Trump’s failed tariff and trade strategy, with estimates showing that hardworking Americans could pay more than $330 billion in tariff costs in 2026, which equates to more than $2,500 per family,” Beshear said in a news release. “In addition to causing prices to skyrocket, these policies are also harming Kentucky’s signature agriculture, bourbon and coal industries.”

Trade war damages key KY industries, Beshear says

There has been a decrease in global bourbon exports as a result of Trump’s policies, including an 85% decrease to Canada, according to Beshear. Bourbon distillers are facing layoffs and a backlog of 16 million barrels of bourbon.

The policies have also increased the prices of essential mining equipment and infrastructure, which makes it difficult for Kentucky coal producers to compete, Beshear said. Alliance Resource Partners, a major coal producer in Eastern Kentucky, said the trade war “could reduce economic activity, increase costs, decrease demand and alter purchasing behaviors for thermal and metallurgical coal.”

Trump’s policies are also impacting Kentucky cattle farmers. Beshear said the president plans to import beef from outside the United States, which would be “disastrous” for the Kentucky agriculture industry.

The Kentucky Cattlemen’s Association has criticized Trump for the plan.

“It’s time Trump prioritized our people and ended this disastrous trade war,” Beshear said in the news release.