Kentucky

Kentucky faces a uniquely painful tariff cocktail: its two signature industries — bourbon and automobiles — are both prime retaliation targets. The EU's 25% retaliatory tariff on American whiskey was specifically designed to hit Kentucky, which produces 95% of the world's bourbon. Exports to the EU dropped 35% after tariffs took effect, devastating distilleries from Bardstown to Louisville. Toyota's Georgetown plant — the company's largest globally, producing 550,000 Camrys and RAV4s annually — faces 25% tariffs on imported parts from Japan that raise per-vehicle costs by an estimated $2,700. Ford's Louisville Assembly Plant and two truck plants add to the state's massive auto exposure. GE Aviation in Evendale (just across the Ohio border but with deep Kentucky supply chains) and Lexington's aerospace suppliers face retaliatory tariffs on engine exports. Kentucky's tobacco industry, already in decline, sees retaliatory tariffs close remaining Asian markets. The UPS Worldport at Louisville's airport — the company's global air hub sorting 2 million packages nightly — processes goods that are all more expensive under tariff regimes.