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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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Demetrus Liggins disputes Fayette County board’s claim he resigned, attorneys allege misconduct

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Demetrus Liggins disputes Fayette County board’s claim he resigned, attorneys allege misconduct


LEXINGTON, Ky. (LEX NEWS) — The attorneys for Dr. Demetrus Liggins issued a press release Friday alleging the Fayette County Board of Education publicly announced a resignation that never happened, cited the wrong Kentucky statutes to justify placing him on administrative leave, and installed a replacement superintendent without legal authority to do so.

The press release, dated June 19, 2026, gives FCPS a four-day deadline to rescind the administrative leave, withdraw the replacement-superintendent designation, and correct the public record. If the district does not comply, Dr. Liggins’ legal team has reserved the right to pursue contractual, statutory, constitutional, defamation, false-light, civil-rights, and tort claims.

According to the press release, Dr. Liggins proposed discussions toward a possible separation agreement — he did not submit an unconditional resignation. His attorneys allege he expressly corrected the Board’s characterization before the Board acted, yet the Board publicly announced a “resignation notice” anyway.

The press release also notes a striking internal contradiction in the Board’s own June 11 letter: the document’s letterhead continued to identify “Superintendent: Demetrus Liggins, PhD” even while the body of the letter announced an “Acting Superintendent.”

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Dr. Liggins’ attorneys argue the Board’s June 11 leave letter cited KRS 160.160 and KRS 160.370 — neither of which, according to counsel, expressly authorizes a board to indefinitely suspend a contracted superintendent, bar him from communicating with district-affiliated persons, exclude him from all school property, and install a substitute officeholder.

Counsel argues the Board deliberately avoided KRS 160.350, the statute that specifically governs superintendent terms, vacancies, acting appointments, and removal for cause, according to the press release.

The press release also invokes Lexington-Fayette’s unique status as Kentucky’s sole urban-county government under KRS Chapter 67A, arguing the Board’s legal framing is further flawed because Fayette County is not governed by the special Chapter 67C school-governance provisions applicable to a consolidated local government such as Louisville–Jefferson County.

Attorney Amos N. Jones issued a direct on-the-record statement in the press release.

“This is not administrative leave in any meaningful sense. They announced a resignation that never happened, displaced the lawful superintendent, installed another superintendent, silenced Dr. Liggins inside his own system, and then hired investigators to determine whether the result already imposed should be imposed. Kentucky law does not allow a school board to manufacture a vacancy, perform a removal first, and search for a justification afterward,” Jones said.

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According to the press release, Dr. Liggins’s contract runs through June 30, 2029. His attorneys allege the Board’s actions breach that contract by stripping him of his office, authority, professional standing, and future-career value while continuing to pay his salary. The contract reportedly prohibits reassignment without Dr. Liggins’s express written consent.

The press release notes that any litigation or settlement arising from this dispute could carry significant financial consequences for Fayette County taxpayers.

The press release places individual Board members — not just the institution — on notice of potential personal legal exposure. Attorneys cite what they describe as a false resignation narrative, the alleged creation of a fictitious vacancy, concerted displacement, and a false-light portrayal of Dr. Liggins. The notice also warns Board members that attorneys retained by FCPS may not represent their individual interests and that they should have received Upjohn warnings about privilege and conflicts.

According to the press release, counsel has demanded preservation of all communications, drafts, closed-session materials, media contacts, video records, investigative instructions, succession discussions, and communications with public officials, unions, employees, activists, and outside counsel. The inclusion of “media contacts” and “communications with public officials” in the demand suggests Dr. Liggins’ legal team believes there may be involvement by parties beyond the Board itself.

As of Friday, June 19, 2026, the four-day deadline issued to FCPS is running. If the district does not comply, Dr. Liggins’ legal team has indicated it will pursue legal action.

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Kentucky MBB players were dishing out smiles at the Kentucky Children’s Hospital this week

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Kentucky MBB players were dishing out smiles at the Kentucky Children’s Hospital this week


Summer practice is full underway for the 2026-27 Kentucky men’s basketball squad. And while the on-court teaching is critical to the offseason, what’s happening off the floor is equally as important.

Earlier this week, head coach Mark Pope and the entire team made a trip to the Kentucky Children’s Hospital, where they helped put together Father’s Day goodie bags, built toys, played board games with the kids, and shared laughs all around. Watching Franck Kepnang, Mason Williams, and Jerone Morton smile ear-to-ear while losing in a board game will make your heart full.

This was more than just a quick stop, though. This was about building real relationships and putting smiles on the faces of kids who deserve it. Returning center Malachi Moreno even reconnected with one of his new friends.

“There was a kid I’ve actually kept in touch with for a while. His name’s Jackson,” Moreno said Thursday. “Took some of my teammates in to meet him. I met him at Dance Blue. We’ve been playing Fortnite together. Got his PSN (PlayStation Network) tag and we’re going to play some Fortnite. Me, him, Kam (Williams), and Trent (Noah), we’re gonna play some Fortnite together.

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“He’s such a cool kid. I think the guys really took in what it means to be at this brand. We walk in any room, we’re gonna brighten someone’s day. They might not be as fortunate as us but we’re taking time out of our day to go see them, and we’re having fun with it. I just wanted them to realize how much fun these kids are having with us.”

Judging by the video that UK put out on Thursday (which you can watch below) , it sure looks like everyone was having a blast. Some things are bigger than basketball.

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Team Coverage: Severe weather sweeps across Kentucky

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Team Coverage: Severe weather sweeps across Kentucky


LEXINGTON, Ky. (WKYT) – Severe weather across the Commonwealth has led to downed trees, traffic impacts and thousands of power outages.

Extensive coverage will be available on air and on WKYT+, where people can stay updated on the latest storm threats and impacts.

Franklin County Damage

A house fire was caused by lightning striking the attic space above two bedrooms, the Franklin County Fire Department reports.

A child was reportedly awakened by smoke, and alerted the residents to danger. Everyone was able to get out of the home safely before fire crews arrived.

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Franklin County house fire(Franklin County Fire Department)

Crews say they were able to contain the fire to the attic, which reduced further damage to the home.

Grant County damage

The Grant County Judge Executive Chuck Dills declared a state of emergency for Grant County due to severe weather damage.

Mason County damage

The Washington Fire Department says crews have been busy with storm damage reports from early morning storms.

The Mason County Judge Executive Owen McNeill says most of the damage seems to be west of US 68 within or near the Maysville city limits. McNeill says trees and debris are in roads county wide, with several power lines down.

Jessamine County damage

Jessamine County Emergency Management posted on social media that multiple weather-related incidents and power outages Thursday morning have taxed their Emergency service teams

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Officials say crews have responded to multiple flooded out roads, downed trees and at least four damaged structures including some commercial occupancies that had collapse of roof or structures.

If you experienced any damage, you are asked to message Jessamine County Emergency Management or submit a damage assessment report.

Kentucky Transportation Cabinet District 7 said KY 1267 at Cushingberry Lane in Jessamine County is closed due to a downed tree on a phone line.

Following severe weather, Ollie’s bargain outlet’s roof partially collapsed in Jessamine County according to emergency management. Emergency management is on the scene handling the situation.

The whole strip mall is closed due to a water leak and potential gas leak.

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Show us your photos

Viewers are encouraged to submit any photos and videos of storm damage and impacts to WKYT. People can submit entries below.

Power outages

As of 8 a.m. on Thursday, June 18, over 4,000 customers in Fayette County are without power, and over 57,000 customers are without power throughout Kentucky, according to Kentucky Power Outages.

In a social media post, Woodford County said it was monitoring outages and was in coordination with utility partners to work to restore power.

The main transmission line that provides power to Falmouth was damaged, leading the city to be without power according to Pendleton County Emergency Management. An LG&E crew is reportedly enroute to fix the problem, but Falmouth will have no power until the damage is repaired.

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Road Conditions

Garrard County Emergency Management says several state and county roads are being covered in water due to the weather conditions. They advise for anyone travelling to use extreme caution and be aware of flooded areas.

If encountering a water covered road, turn around and don’t drive through it, Garrard County Emergency Management says. An alternate route is the safest option.

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Rolling Acres is closed between Bender Drive and Rancho Drive in Frankfort due to storm damage according to the Frankfort-Franklin County Office of Emergency Management. Utility crews are making preparations for repair onsite.

U.S. 127 Business at mile point 1.4 in Anderson County was closed due to a downed tree, according to KYTC, and Midway Road is closed between Old Frankfort Pike and US 60 in Woodford County.

KYTC reports a downed tree at mile point 3.1 on Bryan Station Road in Fayette County. The road is currently blocked. Information will be provided as updates become available.

Fallen tree Bryan Station Road
Fallen tree Bryan Station Road(Fayette County Superintendent II Jason Soper)

Old Frankfort Pike is also closed between Pisgah Pike and the Fayette County line due to a tree on utility lines, KYTC said.

The Harrodsburg Police Department says that the road at Moberly Road and Scooter Avenue is not drivable due to high water, and barricades are in place to prevent drivers from attempting to cross.

KYTC encouraged drivers to use caution while traveling and watch for roadway hazard, including downed trees, debris and powerlines.

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