 
|
Signature Sponsor
September 6, 2026 - Kentucky Gov. Andy Beshear is calling on President Donald Trump to reverse federal tariff and trade policies that he says are increasing costs for consumers and putting pressure on some of the state’s most important industries, including coal, bourbon and agriculture.
Beshear sent a letter to Trump on Sept. 2 urging the administration to change course as trade tensions intensify between the United States and several major trading partners, particularly Canada.
The Democratic governor argued that tariffs ultimately raise costs for American consumers and businesses while exposing U.S. industries to retaliatory measures from other countries.
Beshear said estimates indicate Americans could face more than $330 billion in tariff-related costs in 2026, equivalent to more than $2,500 per family. He also blamed the administration’s trade policies for contributing to higher costs for groceries, fuel and electricity.
Coal Producers Face Higher Equipment Costs
Kentucky’s coal industry was among the sectors specifically highlighted by Beshear.
The governor said tariffs are increasing the cost of equipment and infrastructure needed by U.S. coal producers, potentially making domestic operators less competitive.
Alliance Resource Partners has previously warned that tariffs and possible retaliation from U.S. trading partners could increase costs, weaken economic activity and demand, and change purchasing patterns for both thermal and metallurgical coal.
Those concerns come at a time when coal producers are navigating an increasingly complicated market. While rising electricity demand and energy security concerns have provided support for domestic coal consumption, producers remain exposed to international markets for both equipment and coal exports.
Higher costs for machinery, replacement components and infrastructure could therefore offset some of the benefits producers receive from stronger demand.
Bourbon Industry Hit by Falling Exports
Kentucky’s bourbon industry is also feeling the effects of escalating trade disputes.
According to Beshear’s office, spirits exports to Canada have fallen 85%, while exports to the European Union are down 12%. Shipments to the United Kingdom have declined nearly 30%, and exports to Japan have dropped 23%.
Kentucky distillers are now dealing with production slowdowns and layoffs as inventories continue to build. The state has accumulated a record backlog of approximately 16 million barrels of bourbon, according to the governor's office.
The industry was already showing signs of pressure from international trade tensions before the latest dispute. A 2026 Kentucky Distillers' Association economic impact report found that Kentucky whiskey exports during the first 10 months of 2025 were down from the same period a year earlier, including a 42% decline in exports to Canada and a 13% decrease to the European Union.
Kentucky Distillers' Association President Eric Gregory said the industry benefited substantially when American whiskey had tariff-free access to international markets, with exports growing 150% during that period.
Gregory said the situation in Canada has been particularly damaging because American spirits have not simply faced tariffs in some areas — they have been removed from store shelves.
The association supports efforts to bring the countries back to the negotiating table and restore tariff-free trade for American whiskey.
Kentucky Farmers Caught in Trade Dispute
Beshear also raised concerns about the impact of federal trade policy on Kentucky agriculture, particularly the cattle industry.
Kentucky is the largest beef cattle-producing state east of the Mississippi River, making cattle production an important part of the state's agricultural economy.
The governor criticized plans to increase beef imports from outside the United States, arguing that additional foreign competition could hurt domestic cattle producers. He pointed to concerns raised by the Kentucky Farm Bureau and Kentucky Cattlemen's Association over the potential long-term consequences for farmers.
The uncertainty surrounding trade policy has also been acknowledged by the Trump administration.
U.S. Agriculture Secretary Brooke Rollins said farmers and ranchers have legitimate concerns about the uncertainty created by ongoing trade negotiations but maintained that the administration is prioritizing agriculture in its trade agreements.
Rollins said she believes U.S. farmers and ranchers will ultimately benefit once negotiations are completed.
White House Defends Trade Strategy
The dispute reflects the broader divide over Trump's use of tariffs as an economic and trade-policy tool.
The administration has argued that tariffs can pressure trading partners into more favorable agreements, protect American industries from unfair competition and encourage companies to invest and manufacture more products in the United States.
Beshear, however, argues that Kentucky businesses and households are absorbing the costs before those promised benefits materialize.
His appeal comes amid renewed tensions with Canada, which has announced retaliatory measures in response to U.S. tariffs. The escalating dispute threatens to place additional pressure on industries that depend heavily on international trade.
For Kentucky, that means the consequences extend well beyond one sector.
Bourbon producers depend on access to overseas consumers, coal companies compete in domestic and international markets while relying on costly equipment and infrastructure, and farmers are vulnerable both to retaliatory trade measures and increased competition from imported agricultural products.
Beshear is now urging the White House to abandon the tariff strategy before those pressures deepen.
“It’s time Trump prioritized our people and ended this disastrous trade war,” Beshear said.
|
|