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Here’s how Trump tariffs on Mexico, Canada could impact Kentucky businesses

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Here’s how Trump tariffs on Mexico, Canada could impact Kentucky businesses


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  • President Trump has ensured the reinstatement of a 25% tariff on Canada and Mexico, at 12:01 a.m. Tuesday, reversing a monthlong pause.
  • The tariffs are expected to significantly impact Kentucky’s bourbon and automotive industries, potentially leading to job losses and price increases.
  • The bourbon industry faces uncertainty as retaliatory tariffs from Canada and the EU could harm exports and disrupt supply chains.
  • The automotive industry is grappling with the tariffs’ impact on production costs and supply chains, with some experts predicting delays in domestic production.

Following a monthlong pause, President Donald Trump has reinstated 25% tariffs on Canada and Mexico, beginning March 4. In addition, a 10% tariff that was initially implemented on China in February will now increase by 10%.

While speaking in the White House Monday afternoon, Trump said there is “no room left” to negotiate on tariffs with Canada and Mexico, reassuring the tariffs will start at 12:01 a.m. Tuesday.

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Trump initially imposed a 25% tariff on Canada and Mexico in February, sending sweeping concern across the nation about potential job loss and impact to certain industries, including Kentucky bourbon. However, the countries reached an agreement for the tariffs to be paused for 30 days to allow for further negotiations.

That time is now up.

Monday saw stocks plummet, including for brands with deep Kentucky ties, like Brown-Forman and Ford, with many investors signaling concern as the tariffs remain hours away from return.

“Due to the uncertainty surrounding the tariffs, the stock market has erased the gains from the ‘Trump bump’ following the presidential election, and the expected upward pressure on prices is giving investors pause,” Gustavo Flores-Macias, a professor of government and public policy at Cornell University, told the Courier Journal.

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Consumers could see price bumps on goods within a few days as the tariffs go into effect. Prices for some goods, such as cellphones, clothes, and household goods are likely to increase, according to the Washington Post. Additionally, grocery items including vegetables, grains, bakery items and more, could also see price increases.

“The U.S. economy is larger and can better absorb the negative consequences of a trade war, but a simultaneous trade war with its three main trade partners, once tariffs against China are included, will affect all parties negatively,” Gustavo Flores-Macias said.

Here’s a look at how key Kentucky industries, such as automobile manufacturing and bourbon, may be impacted by the tariffs:

How will Kentucky’s bourbon industry be impacted be tariffs?

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Kentucky’s bourbon industry was previously targeted during Trump’s first term as president when he implemented tariffs on steel and aluminum, causing the European Union to slam a 25% retaliatory tariff on American whiskey, which includes bourbon.

Under former President Joe Biden, the EU retaliatory tariffs against American whiskey were halted, giving Kentucky bourbon some much needed reprieve. With the expiration of that pause set to expire on March 31 and return at a rate of 50%, Kentucky bourbon now faces uncertainty across three major global export markets: Canada, the European Union and Mexico.

“Unfortunately, … we’re kind of seen as collateral damage to the trade war,” Victor Yarbrough, CEO and co-founder of Brough Brothers, previously told the Courier Journal.

When the initial announcement of tariffs on Canada and Mexico was announced in February, Canada vowed it would flush Kentucky bourbon from the shelves and implemented a 25% tariff against U.S. goods.

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These actions were paused for the past 30 days. Now, with the Trump tariffs back, it is likely the U.S. will face further retaliatory tariffs that could impact the spirits industry. Distilled Spirits Council of the United States President Chris Swonger said he is concerned that Canadian stores will once again remove U.S. spirits from its shelves and American whiskey will be stuck in another retaliatory trade war.

“At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic,” Swonger said in a November statement.

In a Monday afternoon statement ahead of the March 4 tariff return, Swonger said DISCUS would like to see tariffs imposed by the U.S. on Canadian and Mexican spirits lifted in an effort to protect U.S. spirits from facing retaliation.

“With spirits products between our three countries already benefitting from fair and reciprocal trade, it makes no sense to have them embroiled in this trade dispute,” Swonger said.

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Major bourbon distillers in Kentucky such as Brown-Forman, the maker of Jack Daniels, Woodford Reserve and Old Forester, which, as one of the leading exporters of U.S. spirits globally, has 55% of its net sales coming from outside the U.S., stand to feel a substantial impact from the tariffs.

Other major Kentucky bourbon companies that are big exporters and could be impacted include Heaven Hill, the maker of Evan Williams; Beam Suntory, which produces Jim Beam and Maker’s Mark products; and Diageo, the owner of Bulleit Bourbon.

U.S. Rep. Morgan McGarvey previously said Kentucky “will feel the pain even more acutely” when tariffs, especially retaliatory ones on bourbon, take place.

In 2023, the three largest export markets for U.S. distilled spirits were the European Union, Canada and Mexico, respectively, according to the Distilled Spirits Council of the United States.

“American spirits consumers as well as restaurants and bars across our country that are still struggling following the pandemic closures will shoulder the burden of these tariffs,” Swonger said.

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How will Kentucky’s automotive industry be impacted be tariffs?

Kentucky’s automotive manufacturing industry, which includes two Ford Motor Co. plants in Louisville and a Toyota plant in Georgetown, among others, also stands to be impacted by tariffs.

“The automobile sector, in particular, is likely to see considerable negative consequences, not only because of the disruption of the supply chains that crisscross the three countries in the manufacturing process, but also because of the expected increase in the price of vehicles, which can dampen demand,” Flores-Macias, with Cornell University, said.

The auto sector in Kentucky and elsewhere stands to be majorly impacted, with the February tariff on China rising an additional 10%, combined with a 25% tariff on all steel and aluminum imports, as well as tariffs on imported autos and semiconductors. Those costs may leave America manufacturers scrambling — and in some cases delaying domestic production altogether.

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“Let’s be real honest: Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we’ve never seen,” Ford CEO Jim Farley said in February. “Frankly, it gives free rein to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn’t be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever.”

Some experts say that even if the Trump tariffs do encourage the onshoring of parts along the automotive supply chain, prices that will ultimately be passed down to consumers at purchase are still likely to rise for the simple fact that overall costs and labor rates in the U.S. are higher than in Asian countries or Mexico.

“Tariffs may be good in certain situations but, overall, someone has to pay for increased prices no matter where they are produced, and that will likely be the consumer,” vehicle manufacturing expert Laurie Harbour told the Detroit Free Press.

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How will consumers be impacted by the Trump tariffs?

As industries cope with higher production prices and a desire to remain profitable in a global economy, workers will likely directly feel the tariff impact.

Eric Gregory, president of the Kentucky Distillers’ Association, along with Swonger of DISCUS, previously told the Courier Journal a large concern of tariffs hitting the bourbon industry is the potential job loss it stands to create in the commonwealth and among supporting industries.

“Look who’s going to ultimately pay the price: The farmers who grow the corn, the coopers and the loggers who depend on harvesting timber, the truckers who drive the barrels and the truckers who drive the finished product, not only in Kentucky, but all across the country,” Gregory previously said.

“Anything that impacts the Kentucky bourbon industry will impact thousands and thousands of other workers here whose hands don’t make the whiskey.”

Contact business reporter Olivia Evans at oevans@courier-journal.com or on X, formerly known as Twitter, at @oliviamevans_.

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Even Indiana-Kentucky basketball rivalry couldn’t resist HeisMendoza chants

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Even Indiana-Kentucky basketball rivalry couldn’t resist HeisMendoza chants


LEXINGTON, Ky. — Fernando Mendoza’s Heisman Trophy triumph made noise as far afield as Rupp Arena on Saturday night.

Indiana could not claim too many fans in the building, in the Hoosiers’ first regular-season game against Kentucky in 14 years, unsurprising given the venue. But the ones who made the trip east on I-64 made themselves heard more than once during a 72-60 loss.

That included what has become a familiar chant among IU fans, one that broke out not long into the game and yet owing absolutely nothing to what was happening on the floor.

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As news filtered through the arena that Mendoza had won his program’s first Heisman Trophy, fans seated in small clusters — including one group just a few feet away from the media seating area — began loudly chanting “Heis-Mendoza!” at the news.

It was the latest reminder of IU’s brave new world, with football and basketball co-existing so significantly, so late into the calendar. Curt Cignetti’s team, the No. 1 seed in this year’s College Football Playoff, will next play in the Rose Bowl, on New Year’s Day in Los Angeles.

The Hoosiers await the winner of the 8/9 game between Oklahoma and Alabama, in Norman.

In the meantime, they’ve spent the pre-Christmas period resting on the field, while cleaning up off it. Mendoza and Cignetti were named Big Ten offensive player and coach of the year, respectively, while Carter Smith won the conference’s lineman-of-the-year award.

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Cignetti has also won multiple national coach-of-the-year awards, with more potentially on the way.

Mendoza added a clutch of trophies to his mantle this weekend in New York, including not just the Heisman Trophy but the Davey O’Brien Award for nation’s best quarterback and the Maxwell Award for nation’s best player. Mendoza is also the first Hoosier to win the O’Brien Award, and the second (after Anthony Thompson) to win the Maxwell.

More than a dozen Hoosiers have landed All-Big Ten and/or All-America honors since their Big Ten championship game triumph a week ago. A handful — including Smith, Aiden Fisher, Riley Nowakowski, Pat Coogan, Isaiah Jones and others — traveled to New York to celebrate with their quarterback.

Alberto Mendoza, Fernando Mendoza’s backup and younger brother, also made the trip. Both brothers became visibly emotional when Fernando referenced his younger brother during his acceptance speech.

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The Hoosiers ultimately left Rupp Arena empty handed Saturday. But their football program once again left them celebrating, nonetheless.

Want more Hoosiers coverage? Sign up for IndyStar’s Hoosiers newsletter. Listen to Mind Your Banners, our IU Athletics-centric podcast, on Apple Podcasts, Spotify or wherever you get your podcasts. Watch the latest on IndyStar TV: Hoosiers.



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After more than 40 years, a woman is reunited with her Kentucky family after allegedly being abducted by her mother | CNN

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After more than 40 years, a woman is reunited with her Kentucky family after allegedly being abducted by her mother | CNN


Three-year-old Michelle “Shelley” Newton poses for the camera in a sailor’s outfit, smiling wide, showing the gap between her two front baby teeth in an undated missing persons flyer from the Jefferson County Sheriff’s Office.

“Michelle was taken by her Mother,” it reads.

Now, Michelle, 46, is on a path to healing. Her mother is facing one charge.

The toddler’s vanishing took place in spring 1983, after her mother Debra Newton claimed she was “relocating to Georgia” from Louisville, Kentucky, “to begin a new job and prepare a new home for the family,” according to a Monday news release from the Jefferson County Sheriff’s Office.

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CNN affiliate WLKY spoke to Joseph Newton, Debra’s husband and Michelle’s father, in 1986 after three years of searching for his daughter. He said the plan had been to move to Georgia. Debra took Michelle early, he added.

When he got there, he said they were gone.

Sometime between 1984 and 1985, a “final phone call” occurred between Debra and Joseph Newton, according to the sheriff’s office. Then, “both mother and daughter vanished.”

A custodial-interference indictment warrant soon followed.

“Wouldn’t you want your child back? At least to see her grow up?” Joseph Newton asked WLKY nearly four decades ago.

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Police at one point thought it was possible Michelle was in Clayton County, Georgia, a suburban county almost 20 miles south of downtown Atlanta, according to the flyer.

Despite no signs of Michelle or her mother and Debra’s inclusion on the FBI’s “Top 8 Most Wanted parental-kidnapping fugitives,” Michelle’s case was dismissed in 2000 when “the Commonwealth” of Kentucky could not reach her father, the release said.

Five years later, Michelle, who would have been in her 20s, was removed from national child missing databases, according to the sheriff’s office.

The undated missing persons flyer says Michelle’s entry in the National Center for Missing and Exploited Children system and Debra’s warrant for custodial interference were recalled in 2005 “due to inaccurate information.”

The case was reindicted in 2016 after a family member “prompted detectives to reexamine the case.”

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Earlier this year, 66-year-old Debra Newton had been spotted in Marion County, Florida, going by a different name.

When a Crime Stoppers tip identified the woman as a possible match, a US Marshals Task Force detective compared a recent photo to a 1983 image of Debra, and a Jefferson County detective “confirmed the resemblance,” the release said.

Authorities collected DNA from Debra’s sister in Louisville, and it showed a “99.9% match” to the woman in Florida.

When police arrived at her door, Michelle told WLKY that officers officially broke the news, “You’re not who you think you are. You’re a missing person. You’re Michelle Marie Newton.”

Michelle, who had been living under a different identity, called the Jefferson County Sheriff’s Office upon discovering her true family history, according to the release.

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On the other side of that phone call was a reunion with family she hadn’t seen in decades, including her father.

“She told us she didn’t realize she was a victim until she saw everything she had missed,” Chief Deputy Col. Steve Healey said.

“She’s always been in our heart,” Joseph Newton told CNN affiliate WLKY. “I can’t explain that moment of walking in and getting to put my arms back around my daughter.”

“I wouldn’t trade that moment for anything. It was just like seeing her when she was first born. It was like an angel.”

The resolution of a case spanning more than 40 years reflects a legacy of “extraordinary” detective work from the sheriff’s office, Healey said in the release, including its long-held philosophy that “no family seeking help is ever turned away.”

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Healey says it also proves the importance of one courageous tipster. “People think calling in tips is ‘snitching.’ It isn’t,” he said. “You’re helping victims. You’re helping families. This case proves that one phone call can change a life.”

A family member of Debra’s traveled to Kentucky and posted her bond.

She has been arraigned on a felony charge of custodial interference, according to the Commonwealth’s Attorney Office in Jefferson County. Felony custodial-kidnapping charges carry no statute of limitations in Kentucky.

CNN has reached out to the Louisville-Jefferson County public defender’s office for comment on Debra Newton’s legal representation.

Debra Newton voluntarily appeared in court for her arraignment in Louisville, the release states.

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Both Michelle and Joseph Newton were in attendance.

Michelle doesn’t appear to be taking sides. She told WLKY: “My intention is to support them both through this and try to navigate and help them both just wrap it up so that we can all heal.”



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The Indiana game is a must-win for Kentucky, even in December

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The Indiana game is a must-win for Kentucky, even in December


One week ago, I wrote that Kentucky needed to show us something against Gonzaga. Unfortunately, it did, in a bad way. The Cats’ 35-point loss to the Bulldogs was their fourth to a ranked team this year. It was a performance so abysmal that the team got booed off the floor at halftime. Ever since, BBN has been in a tailspin, uncertainty about the program’s short-and long-term future hanging over the Bluegrass like a thick fog.

Kentucky has already gotten back in the win column, beating NC Central by 36 on Tuesday night; however, the true test of whether or not the Cats have reached rock bottom is Saturday vs. Indiana. The Hoosiers are 8-2, losing to Minnesota and Louisville last week. They rebounded from the 87-78 loss to the No. 6 Cards by routing Penn State 113-72 on Tuesday, thanks in large part to 44 points from Lamar Wilkerson, who picked Indiana over Kentucky out of the transfer portal this past April.

Both Kentucky and Indiana fell out of the AP and Coaches Polls this week, hovering near each other in the group of “others receiving votes.” KenPom ranks Kentucky No. 20 and Indiana No. 21. It gives the Cats a 4-point edge in Saturday’s game, while BetMGM goes a half-point higher at 4.5.

Thank goodness this one’s at Rupp because it’s a must-win, in more ways than one.

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Resume

Let’s start with the most basic: the schedule. It may feel premature to start worrying about the NCAA Tournament, but we’re 10 games in, one-third of the way through the regular season, and Kentucky still doesn’t have a good win, going 0-4 in said opportunities. The highest-ranked team the Cats have beaten so far is Valparaiso, which ranks No. 191 in the NET rankings. All of Kentucky’s wins are in Quad 4, all of its losses in Quad 1. Quad 1 losses don’t hurt you a ton, but at some point, you have to pick up some meaningful wins to offset them.

The Cats have two more chances to pick up a Quad 1 win before SEC play begins: vs. Indiana and St. John’s. Over half of Kentucky’s conference games are in Quad 1; before starting that gauntlet, we need to see that the Cats are capable of winning one. Of the two coming up, beating Indiana in Rupp feels more manageable than Mark Pope taking down his old coach, Rick Pitino, and St. John’s next weekend in Atlanta.

Lamar Wilkerson

Much has been said about Kentucky’s struggles with recruiting this week. Most of that conversation has centered around high school recruiting, not the transfer portal, but Lamar Wilkerson is one of the biggest portal targets Mark Pope missed on this past offseason. Kentucky felt so good about landing him that Mark Pope took him to the winner’s circle at Keeneland. Instead, Wilkerson went to Indiana, the Hoosiers sweetening the pot at the last minute.

On Tuesday, Wilkerson set an Indiana record with 10 three-pointers in the win over Penn State. He is averaging 18.8 points and 3.5 made threes per game this season. There were other whiffs for Pope and his staff during the offseason, but Wilkerson will take center stage at Rupp tomorrow night, at a time when Kentucky’s $22 million team is the laughing stock of college basketball.

Please don’t let him get hot.

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Fan fatigue

You don’t need me to tell you BBN is unhappy. The boos in Nashville were ugly proof of the unrest in the fanbase now. Concerns about recruiting and the school’s partnership with JMI, as outlined by Jacob Polacheck and Jack Pilgrim earlier this week, aren’t helping. Mark Pope struck a different tone on Tuesday night, using his bench to send messages to Kam Williams, Jaland Lowe, and Brandon Garrison, and biting back anger afterward as he talked about how his team continues to fall short of the standard. On the player side, Otega Oweh seemed to step up as a leader, scoring a season-high 21 points and insisting all is well in the locker room during interviews, one of which took place with his teammates surrounding him.

On Saturday, we get to see if those baby steps of progress are enough to avoid a fifth loss. Kentucky has already lost one home game this season, last week vs. North Carolina. Given all that’s happened since, there might be boos if the Cats pick up a second tomorrow night.

Fear of becoming Indiana

Indiana used to be one of Kentucky’s biggest rivals; for fans of a certain age, the Hoosiers may still be. Over the past 20 or so years, Indiana has faded to irrelevance. The Hoosiers haven’t gone to a Final Four since 2002. There’s a reason they put Christian Watford’s buzzer-beater vs. Kentucky in 2011 on a popcorn box; they haven’t had much else to celebrate.

As Kentucky fans, we’ve made our fair share of jokes about Indiana, but it’s not quite as funny now that the Cats haven’t gone to the Final Four in a decade, won an SEC regular-season championship since 2019-20, or an SEC Tournament title since 2017-18. For all our hopes that Mark Pope would be the one to turn it around, Kentucky still hasn’t won a big game this season. As Mark Story outlined in the Herald-Leader, Kentucky could be on the path to becoming the next Indiana, which makes Saturday’s game even bigger. With this being the first game in a four-year series, it could be an annual reminder if things keep trending in this direction.

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So, please, Kentucky, win this basketball game. You can make it my early Christmas gift.



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