LEXINGTON, Ky. (ABC 36 NEWS NOW) — Kentucky is the home of bourbon and people across the world have been able to experience Kentucky bourbon throughout the years. But with possible new tariffs on imports, promised by president-elect Donald Trump, it might be a little more difficult for distilleries to handle any “reverse” tariffs, and absorb the cost. According to Eric Gregory, the director of the Kentucky Distillers Association, 95% of the world’s bourbon is made in Kentucky, which means more economic impact and more jobs. “Bourbon has the second highest spinoff factor in the state,” said Gregory. “So for every bourbon job that is created, three more are created down the line.” Bourbon also has a $9 billion economic impact, brining in more tourists, tax revenue and distilleries. And while bourbon is one of the top export industries in the state, there is worry about the new tariff that could reach up to 50%. “That will be crippling blow to our bourbon industry and our exports and especially not only our big distilleries, but our small distilleries.” Back in 2018, they were already taxed 25% and companies worked hard to absorb that loss so they wouldn’t have to raise their prices. But if a new reverse tariff reaches a goal of 50%, absorbing won’t be an option. “That’s something that we understand, because if you absorb them that’s less revenue for the distillery. Which means less investment in Kentucky, fewer jobs created in Kentucky, etc. So when you’re looking ahead at a 50% tariff, I don’t know any company in the world that could absorb a 50% tariff.” The fear is a new tariff could devastate the bourbon industry. Not only with having to raise prices. “There are so many spinoff jobs that are dependent on the bourbon industry, that’s where people are going to see the hit and that’s what scares us the most.” Gregory says they are hoping to talk with their buyers in other countries to keep possible tariffs low and they remain cautiously optimistic. Categories: Featured, Local News, News Tags: Bourbon, bourbon tariff, Bourbon tourism, Distillery, Kentucky, tariff, trump tariff