INDEPENDENCE, Ky. — Tariffs are hitting the Kentucky bourbon industry hard by disrupting its export markets, threatening economic fallout.

What You Need To Know

  • The bourbon industry, which pumps billions of dollars into the state’s economy and supports thousands of jobs, has faced retaliatory tariffs from trading partners like the European Union and Canada in response to U.S. trade policies

  • Canada’s retaliatory measures have also included pulling American spirits from shelves, but Boone County Distilling Co. says it won't be affected since it doesn't ship to Canada

  • Other small distilleries could be vulnerable, however, as trade barriers ripple through the supply chain, impacting farmers, barrel makers, truckers, and other workers tied to bourbon production.

The Boone County Distilling Co. has been around for just about 10 years. Co-founded by retired police officer Josh Quinn, it’s a smaller distillery on the Kentucky Bourbon Trail that produces about 400 barrels of bourbon a year.

Not being able to sell a product until it ages more than five years at least can make it a tough business to predict.

“It’s a complex operation. It’s very capital intensive, so a lot of money goes out the door before you ever sell any product. It’s a business where you wish you had a crystal ball and you could look five or six years into the future to see what the market was gonna look like,” Quinn said.

The bourbon industry, which pumps billions of dollars into the state’s economy and supports thousands of jobs, has faced retaliatory tariffs from trading partners like the European Union and Canada in response to U.S. trade policies, with fears of a 50% tariff looming.

Canada’s retaliatory measures have also included pulling American spirits from shelves, but Quinn said he isn’t sweating it too much.

“The tariffs might affect a medium-sized distillery or a larger distillery much different than they do us, but for the Boone County distilling company, the tariffs don’t affect us at all, because we don’t ship to Canada, we don’t ship to Mexico, we don’t ship to Europe,” he said.

Other small distilleries could be vulnerable, however, as trade barriers ripple through the supply chain, impacting farmers, barrel makers, truckers and other workers tied to bourbon production.

New Riff Distillery CEO Hannah Lowen sent the following statement:

“As an independent, family-owned business, we take pride in providing jobs and supporting our northern Kentucky community. The tariffs have a significant impact on our operations, adding costs in an already competitive industry. We remain committed to adapting and continuing to serve our customers, and we hope a permanent agreement is reached soon to provide stability for small businesses like ours.”

Quinn said, “If your business relies on exporting, and you haven’t really owned the domestic market, I think maybe you’ll run into some trouble,” he said. “If you’re a domestic bourbon drinker, I think you’re gonna find a lot more availability. I think you’re gonna find it at better prices.”

Quinn added the bourbon industry has had a slow steady climb for 15 years, but for the last two and half years, he’s seen a market correction on the horizon as a strong possibility.

So for people who want to help the industry, “What you can do is go visit your local distillery,” Quinn said. “Buy that bottle of bourbon, take it to work, take a tasting, buy a t-shirt, buy a glass.”

Related Stories