tariffs

More than $3 billion worth of U.S. goods — from bourbon and corn to Harley-Davidson motorcycles — are now subject to a 25 percent tariff in the European Union, in retaliation for the Trump administration's tariffs that hit the EU, Mexico and Canada this month.

"The trade that we believe in is built on rules, trust and reliable partnership," Jean-Claude Juncker, president of the EU Commission, said in a speech in Dublin on Thursday night. "The United States' decision to impose tariffs on Europe goes against that. In fact, it goes against all logic and history."

Kentucky Governor Downplays Effect of EU Tariffs on Bourbon

11 hours ago
J. Tyler Franklin

In comments at odds with his home state's whiskey distillers, Kentucky's Republican governor is downplaying fears that the European Union's retaliatory tariffs could disrupt the booming market for the Bluegrass state's iconic bourbon industry.

"There's always the potential for some type of impact, but I don't think it will be a tremendous impact," Gov. Matt Bevin said when asked about tariffs during a TV interview this week with Bloomberg.

Tariffs Stir Unrest Among American Whiskey Producers

Jun 21, 2018
Abbey Oldham/WKU Public Radio

Much of the rye whiskey aging in hundreds of barrels at Catoctin Creek Distillery in Virginia could end up being consumed in Europe, a market the 9-year-old distilling company has cultivated at considerable cost.

 

But an escalating trade dispute has the distillery's co-founder and general manager, Scott Harris, worried those European sales could evaporate as tariffs drive up the price of his whiskey in markets where consumers have plenty of spirits to choose from.

 

Ryland Barton

This week in Kentucky politics: the lawsuit over the new pension law was argued in court; Kentucky’s new commissioner of education laid out his priorities, which include helping charter schools open up and taking over Louisville’s public school system; and Senate Majority Leader Mitch McConnell continued to express concern about President Trump’s tariffs leading to a full-blown trade war.


McConnell Warns That Trump’s Tariffs Could Hurt Kentucky

Jun 4, 2018

The Senate’s top leader is usually a powerful ally of President Donald Trump, but he finds himself at odds with his fellow Republican over slapping tariffs on American allies.

Senate Majority Leader Mitch McConnell warns that key Kentucky products including bourbon could wind up targets of retaliation if a trade war erupts over the Trump administration’s decision to impose tariffs on steel and aluminum from Europe, Mexico and Canada.

“I don’t think anything good will come out of a trade war,” McConnell said during an appearance Friday before Greater Louisville Inc., the metro chamber of commerce. “And I hope we pull back from the brink here. Because these tariffs will not be good for the economy.”

Becca Schimmel

The Trump administration has made good on a promise to impose steel and aluminum tariffs on some major U.S. trading partners, including the European Union, Canada and Mexico.

The U.S. commerce department exempted the EU, Canada and Mexico from a 25 percent tariff on steel and 10 percent tariff on aluminum in March. Those exemptions were set to expire in May, but countries were given one more month. U.S. Commerce Secretary Wilbur Ross announced Thursday the exemptions were expiring and the tariffs will go into effect at midnight. The President is still able to cancel or extend those exemptions.


Rebecca Kiger

Far from the ocean and Puerto Rico’s famous beaches, narrow roads wind into mountains not unlike the country roads of our home, West Virginia. After hours of driving we reach a rural community in the island’s center called Tetuan Tres. Like so many places in rural Appalachia, you don’t come here accidentally.

We’ve come to learn more about how families here are recovering from natural disaster, and what it might teach us about the ways West Virginia communities can cope with devastating floods.


Becca Schimmel

With sunglasses perched atop his camouflage cap, Brady Carwile filled out an application at a job fair in a community center in Elizabethtown, Kentucky. Carwile works at a local auto parts maker but he’s hoping for a maintenance position at Century Aluminum’s Hawesville Smelter.

“It’s one of the best jobs you can find around there,” Carwile said.

Just a few years ago Century was laying workers off, not hiring them on. Century idled 60 percent of its capacity in 2015 and laid off more than 300 workers here. Now that the Trump administration is placing tariffs on steel and aluminum imports, Century plans to bring the Hawesville smelter back to full capacity, invest $150 million, and create up to 300 new jobs.


Becca Schimmel

Regional iron and steel industry leaders say they are disappointed by the Trump administration’s delay on a decision about which countries will face new import tariffs. President Trump has postponed until June a decision on which countries will be subject to new tariffs on steel and aluminum imports. The decision had been due May 1.

Nucor Corporation CEO and president John Ferriola was among the steel and iron industry representatives who discussed the delay in a press briefing on Tuesday. Nucor has facilities in Kentucky and Ohio. Ferriola said the delay is disappointing because it gives other countries more time to undercut domestic producers with unfairly priced goods, a practice known as dumping.


Nicole Erwin

China buys more than half of the soybeans grown in the Ohio Valley. So China’s threat this week to place a 25 percent tariff on U.S. soy means farmers would be caught in the crosshairs of a trade war.

Even though tariffs haven’t taken effect, markets are already showing signs that commodities traders are growing nervous. The tariff anxiety comes as U.S. Agriculture Secretary Sonny Perdue visits the region this week. 


Updated at 5:26 p.m. ET

China's leaders followed President Trump in taking another step toward a new trade war, announcing a plan to put steep tariffs on $50 billion of U.S. imports. China's proposed 25 percent tariffs would target a wide range of American products, from soybeans and whiskey to airplanes and cars.

"China currently buys about $14 billion worth of American soybeans each year — almost a third of the entire U.S. crop," NPR's Dan Charles reports for our Newscast unit. "Prices for U.S. soybeans tumbled by 3 to 5 percent" on the news, Dan adds.

Becca Schimmel

Bottles of bourbon make their way through the assembly line at Maker’s Mark, one of ten distilleries on the Kentucky bourbon trail. They’re cleaned, filled, capped and then dipped in the company’s signature red wax, a tradition that started with the wife of the distillery’s founder, Bill Samuels.

"She took red sealing wax, she put it in her family's deep fryer right there in the kitchen, dipped the first bottle of Maker’s Mark right there in her kitchen,” a tour guide explained. “She brought it out to Bill Samuels Sr. as he was sitting there in the kitchen and he hated it. Well, you see who won."


When President Trump announced tariffs on steel and aluminum imports this month, he said protecting the two industries was vital for national security.

"We want to build our ships. We want to build our planes. We want to build our military equipment with steel, with aluminum from our country," he said at a March 8 White House news conference.

In other words, the U.S. military should be as self-sufficient as possible, and not rely on other countries to supply the essential materials it needs for defense.

Erica Peterson

Add another export to the growing list of American products other countries could tax because of tariffs: met coal.

Metallurgical coal — or “met coal” — is low-ash, low-sulfur coal that’s used to produce coke, an essential fuel for steel-making.

Demand for met coal is tied to the demand for steel. It’s also an American export and a symbol President Donald Trump used often on the campaign trail to demonstrate how he would “Make America great again.”

J. Tyler Frankin

Gov. Matt Bevin was non-committal when asked what he thinks of President Donald Trump’s proposal to institute tariffs on foreign-made steel and aluminum.

The policy could benefit Kentucky aluminum manufacturers like Braidy Industries — the company that Bevin helped attract to the state with a package of economic incentives — and Century Aluminum, which announced it would hire 300 new workers in Hancock County if the tariff went into effect.

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