Letter states policies are fueling cost-of-living crisis for Americans and harming agriculture, bourbon and coal industries
FRANKFORT, Ky. (Sept. 2, 2026) – Today, Gov. Andy Beshear sent a letter to President Donald Trump demanding that he rescind his harmful tariff and trade policies, which are fueling a cost-of-living crisis for hardworking Americans and harming signature Kentucky industries such as agriculture, bourbon and coal.
“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,” said Gov. Beshear. “In addition to causing prices to skyrocket, these policies are also harming Kentucky’s signature agriculture, bourbon and coal industries. It’s time Trump prioritized our people and ended this disastrous trade war.”
The Governor’s letter comes a week after Canada announced retaliatory tariffs against the United States as Trump and his administration continue to double-down on the trade war at the expense of Americans and American businesses.
Prices Skyrocket
After hardworking families paid $310 more on average for grocery prices in 2025, costs saw a record increase in May of this year. Drivers are paying on average $575 more for gas this year than they did in 2025, and the average electric bill has spiked by $110. Higher gas prices, grocery costs and utility bills are causing American families to cut back on childcare, car payments, rent, medications and more. The Governor noted that this is not routine inflation; it is a direct result of bad policies by Trump and his administration.
Impacts on Bourbon
By inviting retaliatory penalties from America’s former, long-time trade partners, Trump has placed a target on Kentucky’s signature bourbon industry. Distillers operating in our commonwealth have lost out on global markets, risking the livelihoods of thousands of people who rely on this industry for work. Spirits exports have plummeted, with an 85% decrease to Canada, a 12% decrease to the European Union, a nearly 30% decrease to the United Kingdom, and a 23% decrease to Japan. As a result, Kentucky distillers are facing layoffs, production slowdowns and a record backlog of 16 million barrels of bourbon.
Impacts on Coal
Tariffs are making it harder for American coal producers to compete and have artificially inflated the costs of essential mining equipment and infrastructure. Industry leaders such as Alliance Resource Partners shared that the “tariffs, along with potential retaliatory measures, could reduce economic activity, increase costs, decrease demand and alter purchasing behaviors for thermal and metallurgical coal.”
Impacts on Agriculture and Farmers
The Governor also stood up for cattle farmers, noting that Kentucky is the largest beef cattle-producing state east of the Mississippi River. Trump’s plan to import beef from outside the United States will be disastrous for farmers, agriculture as a whole and the American consumer. Gov. Beshear highlighted recent comments from the Kentucky Farm Bureau and the Kentucky Cattleman’s Association, both of which oppose these measures and warn of long-term consequences.
